Muyuan Foods (SZ:002714) Xin Lang Cai Jing·2025-08-27 04:41Core Viewpoint - The company has demonstrated strong performance in the first half of 2025, with significant growth in revenue and net profit driven by increased pig sales and reduced breeding costs [1][2]. Financial Performance - In the first half of 2025, the company achieved operating revenue of 76.463 billion yuan, a year-on-year increase of 34.46% [1]. - The net profit attributable to shareholders reached 10.530 billion yuan, reflecting a substantial year-on-year growth of 1169.77% [1]. - The non-recurring net profit attributable to shareholders was 10.677 billion yuan, up 1115.32% year-on-year [1]. - The company sold 44.749 million pigs from January to July 2025, marking a 16.1% increase compared to the previous year [1]. - Operating cash flow remained robust, with a net amount of 17.351 billion yuan in the first half, a 12.13% increase year-on-year [1]. Industry Position and Strategy - The company is a leading player in the pig farming industry, benefiting from an improved competitive environment under the "anti-involution" policy [2]. - The company is expanding overseas, having established a subsidiary in Vietnam in March 2025 to leverage domestic technological and cost advantages [2]. - The company is focused on optimizing breeding costs through advancements in breeding management, disease prevention, and smart farming technologies [2]. - The breeding cost has decreased by nearly 1 yuan/kg in the first five months of 2025, with a target of achieving 12 yuan/kg for the year [2]. Long-term Outlook - The "anti-involution" policy is expected to lead to a rational and orderly reduction in industry capacity, maintaining reasonable profit levels in the pig farming sector [2]. - Companies with strong breeding management and cost advantages are anticipated to sustain good profitability [2]. - The company is committed to enhancing shareholder returns, with plans to distribute at least 40% of the distributable profits as cash dividends starting in 2024 [2]. Investment Recommendations - The company is positioned as a leading pig farming enterprise with strong management capabilities [3]. - The ongoing "anti-involution" initiative is expected to benefit the company significantly [3]. - The company is projected to achieve net profits of 21.0 billion yuan, 20.49 billion yuan, and 22.02 billion yuan for the years 2025-2027, with corresponding EPS of 3.84 yuan, 3.75 yuan, and 4.03 yuan [3]. - The projected PE ratios for 2025, 2026, and 2027 are 12.36, 12.66, and 11.78, respectively, maintaining a "buy" rating [3].