Muyuan Foods (SZ:002714) Hua Er Jie Jian Wen·2025-08-21 13:31Core Viewpoint - Muyuan Foods is significantly increasing shareholder returns through a substantial interim dividend plan, marking its first mid-year dividend and achieving a record high cash dividend ratio in recent years [1][2]. Group 1: Dividend Policy - Muyuan Foods announced a semi-annual dividend of 9.32 yuan (including tax) per 10 shares, totaling 5 billion yuan, which accounts for 47.5% of its semi-annual net profit attributable to shareholders [1]. - The total dividend payout for the year has exceeded 58% when including an additional cash dividend of 1.11 billion yuan from share buybacks [1]. - The company has previously distributed cash dividends of 4 billion yuan and 7.588 billion yuan in 2022 and 2024, respectively, with corresponding dividend ratios of 30.17% and 42.44%, both above the historical average of 20% [1][2]. Group 2: Profit Growth and Cost Management - Muyuan Foods achieved a net profit attributable to shareholders of 10.5 billion yuan in the first half of the year, representing a year-on-year increase of over 11 times [2]. - The company's breeding costs have been declining, with costs falling below 12.1 yuan/kg in June and further to approximately 11.8 yuan/kg in July, significantly lower than the projected average of 14 yuan/kg for 2024 [2]. - The CFO expressed confidence in reducing costs to 11 yuan/kg by the end of the year, aiming for an average cost of 12 yuan/kg for the entire year [2]. Group 3: Strategic Transition and Financial Health - Muyuan Foods has transitioned from a phase of large capital investment to a focus on high-quality development, with capital expenditures for 2024 expected to be less than asset depreciation for the first time [3]. - The company has increased its cash dividend commitment ratio from 20% to 40% and aims to further reduce its debt levels, with a target of decreasing total liabilities by 10 billion yuan by 2025 [3]. - As of the end of June, Muyuan Foods' debt-to-asset ratio was 56.06%, a decrease of 2.62 percentage points from the beginning of the year [3].