Muyuan Foods (SZ:002714) Zheng Quan Shi Bao Wang·2025-08-21 04:55Core Viewpoint - In the first half of 2025, Muyuan Foods reported significant growth in revenue and net profit, establishing itself as a leader in the pig farming industry in China [1][3]. Financial Performance - The company achieved total revenue of 76.463 billion yuan, a year-on-year increase of 34.46%, marking a historical high for the same period [1]. - The net profit attributable to shareholders reached 10.53 billion yuan, reflecting a remarkable year-on-year growth of 1170% [1][2]. - Operating cash flow improved, with a net cash flow from operating activities of 17.351 billion yuan, an increase of 1.877 billion yuan compared to the same period last year [2]. Market Position - Muyuan Foods sold 46.91 million pigs in the first half of 2025, including 38.394 million market pigs, 8.291 million piglets, and 225,000 breeding pigs [3]. - The company maintained a cost advantage in pig farming, with the complete cost of pig farming in June 2025 being below 12.1 yuan/kg [3]. Business Strategy - The company leveraged synergies between slaughtering and farming operations to enhance production management and breeding work based on market demand [3]. - An innovative piglet sales scheme was introduced, allowing customers to lock in prices, thus mitigating risks from market price fluctuations [3]. Stock Market Performance - As of August 20, 2025, Muyuan Foods' stock price increased by 25.24% year-to-date, leading the pig farming sector [4]. - Following the release of the half-year report, the stock price surged over 8%, reaching a nearly two-year high [5]. Industry Context - The Chinese government has emphasized capacity control and quality development in the pig farming sector, aiming to stabilize prices and prevent drastic fluctuations [8]. - Muyuan Foods has actively responded to government calls for capacity regulation by reducing the number of breeding sows and managing pig weights [8][9].