Muyuan Foods (SZ:002714) Nan Fang Du Shi Bao·2025-07-10 04:25Core Viewpoint - The company, Muyuan Foods, is expected to report a significant increase in net profit for the first half of 2025, with projections indicating a growth of approximately 924.60% to 973.39% year-on-year, primarily driven by increased pig sales and reduced breeding costs [1][2][5]. Financial Performance - Estimated net profit for the first half of 2025 is projected to be between 10.5 billion to 11 billion yuan, compared to 1.025 billion yuan in the same period last year, reflecting a year-on-year growth of 924.60% to 973.39% [1][4]. - Profit attributable to the parent company is expected to be between 10.2 billion to 10.7 billion yuan, marking a year-on-year increase of 1,129.97% to 1,190.26% [1][4]. - Net profit after excluding non-recurring gains and losses is anticipated to be between 10.6 billion to 11.1 billion yuan, representing a growth of 882.95% to 929.31% year-on-year [2][4]. Sales and Production - The company reported a total sale of 38.394 million pigs and 8.291 million piglets in the first half of 2025, with June alone seeing sales of 7.019 million pigs, a year-on-year increase of 58.35% [5]. - Despite a decrease in the average selling price of pigs to 14.08 yuan/kg (down 20.59% year-on-year), the increase in sales volume led to a revenue of 12.799 billion yuan from pig sales, up 27.65% year-on-year [5]. Cost Management - The breeding cost for pigs has decreased to approximately 12.2 yuan/kg as of May, a reduction of nearly 0.2 yuan/kg from the previous month, attributed to improved production performance [5]. - The company aims to achieve a cost target of 12 yuan/kg through technological innovation and refined management practices in health management, breeding, nutrition, and smart applications [5]. Industry Context - Other leading pig farming companies, such as Wens Foodstuff Group and New Hope Liuhe, have also reported significant sales figures, indicating a trend of increasing industry concentration [6]. - Analysts predict that the pig price may stabilize and improve in the latter half of 2025, potentially benefiting companies with strong cost advantages and profitability [7]. Market Reaction - Despite the positive earnings forecast, the stock price of Muyuan Foods experienced a decline, closing down 0.44% at 44.90 yuan per share after an initial rise of 2.04% [7].