The Zhitong Finance App learned that Citi released a research report stating that it lowered Wanzhou International's (00288) 2026-2028 net profit forecast by 7%-8%, raised the holding company discount from 20% to 30% due to uncertain dividend payments, lowered the target price by 17.9% to HK$6.4 from HK$7.8, and downgraded the rating from “buy” to “neutral.”

Wanzhou International's operating profit for the third quarter fell 30% year on year, in line with the bank's expectations, and performance in all regions was weak as expected. Management lowered the US operating profit guidelines for 2026, and the outlook for US business in the fourth quarter was worse than the bank's previous judgment that it had fallen short of market expectations. The weak outlook for US pig prices, combined with a possible recovery in pig prices in China in 2027, has had an adverse impact on business in both places.

The bank pointed out that management reiterated that it would maintain a moderately high dividend policy, but the specific dividend ratio of Shuanghui has yet to be determined. The bank agreed with the company's intention to maintain moderately high shareholder returns, but believes that the dividend theory, which lacks profit support, is said to be insufficient.

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