Muyuan Foods (SZ:002714) Xin Lang Cai Jing·2025-04-29 02:48Core Viewpoint - The company reported strong Q1 2025 results with significant year-on-year growth in revenue and net profit, indicating robust operational performance and cost management strategies [1][2][4]. Group 1: Financial Performance - Q1 2025 revenue reached 36.061 billion yuan, a year-on-year increase of 37.26% but a quarter-on-quarter decrease of 12.41% [1]. - The net profit attributable to shareholders for Q1 2025 was 4.491 billion yuan, showing a year-on-year increase of 288.79% and a quarter-on-quarter decrease of 39.31% [1]. - The company sold 22.66 million pigs in Q1 2025, representing a year-on-year increase of 42% and a quarter-on-quarter increase of 5.6% [2]. Group 2: Operational Highlights - The average profit per pig was 200 yuan, significantly higher than the industry average of approximately 93 yuan, attributed to a decrease in breeding costs to around 12.9 yuan per kilogram [2]. - The slaughtering volume reached 5.29 million pigs in Q1 2025, a year-on-year increase of 80% and a quarter-on-quarter increase of 15% [2]. - The utilization rate of slaughtering capacity exceeded 70%, improving by over 30 percentage points year-on-year, driven by enhanced sales channels and operational management [2]. Group 3: Future Outlook - The company aims to achieve a target of 72 to 78 million market pigs and 8 to 12 million piglets in 2025, indicating a year-on-year growth of 10% to 19% for market pigs and 41% to 112% for piglets [3]. - The company plans to continue reducing costs through advancements in health management, breeding, nutrition research, and smart applications [3]. - The establishment of a subsidiary in Vietnam and plans for an H-share listing are expected to enhance the company's international presence and long-term growth potential [3]. Group 4: Valuation and Profit Forecast - The company has adjusted its profit forecasts for 2025, 2026, and 2027 to 19.7 billion, 18.3 billion, and 47.2 billion yuan respectively, reflecting increases of 39%, 36%, and 9% [4]. - The target price is set at 51.30 yuan, with a price-to-book ratio of 3.3x for 2025, maintaining a "buy" rating [4].