WH Group (00288) saw its shares drop more than 3% in Hong Kong trading, extending losses from the previous session. At the time of writing, the stock was down 2.61% to HK$6.915, with turnover reaching HK$370 million.

Citi issued a research note indicating that Smithfield has further lowered its third-quarter outlook, reflecting weak demand and a downward trend in pork and hog prices. The brokerage has cut its net profit forecasts for WH Group for 2026 to 2028 by 10% to 11%, primarily due to a 18% reduction in operating profit expectations for North America, which is being dragged down by the pork business.

The bank also revised its dividend payout ratio assumption down from 66% to 50%, citing cash flow uncertainty amid operational challenges and the fact that Shuanghui Development did not pay an interim dividend.