Muyuan Foods (SZ:002714) Sou Hu Cai Jing·2025-09-19 05:58Core Viewpoint - Muyuan Foods has made a remarkable turnaround from a net loss of 4.263 billion yuan in 2023 to a significant profit increase in 2025, with a 34.46% revenue growth and a 1170% increase in net profit in the first half of 2025 [1][9]. Group 1: Company Performance - In the first half of 2025, Muyuan Foods achieved a revenue of 76.46 billion yuan, marking a year-on-year increase of 34.46% [9]. - The company's net profit reached 10.53 billion yuan, showing a dramatic year-on-year growth of approximately 1170% [9]. - The total cost of pig farming for Muyuan Foods was reported to be below 12.1 yuan/kg by June 2025, indicating a continuous decline in production costs [9]. Group 2: Industry Context - The "pig cycle" has been a significant factor affecting the industry, with fluctuations in pig prices and supply leading to periods of profitability and loss for companies like Muyuan Foods [3][6]. - The recent pig cycle began in 2019, influenced by African swine fever, which caused a drastic drop in pig inventory and a subsequent surge in prices, reaching as high as 40 yuan/kg [5]. - By 2023, the market faced an oversupply situation, leading to a 20% decrease in average pig sales prices compared to 2022, resulting in losses for many companies, including Muyuan Foods [6]. Group 3: Strategic Initiatives - Muyuan Foods has adopted various strategies to mitigate risks associated with the pig cycle, including optimizing feed formulas and enhancing disease prevention systems [7]. - The company has focused on a full industry chain layout to counter price fluctuations, moving towards an integrated development strategy [7]. - Plans for international expansion include partnerships in Southeast Asia and a potential IPO in Hong Kong to support global growth initiatives [11]. Group 4: Market Trends - Despite a continued decline in domestic pig prices, which hit a low of 13.32 yuan/kg in September 2023, Muyuan Foods has managed to maintain a recovery in performance [10]. - The company's stock price has seen a significant increase of 44.69% since late May 2023, reflecting positive market sentiment [12].