Muyuan Foods (SZ:002714) Zhi Tong Cai Jing·2025-11-28 12:21Core Viewpoint - Muyuan Foods Co., Ltd. (牧原股份) has submitted an application to list on the Hong Kong Stock Exchange, with Morgan Stanley, CITIC Securities, and Goldman Sachs as joint sponsors [1][27]. Company Overview - Muyuan Foods is a technology-driven leader in the pork industry, operating a vertically integrated business model that covers the entire pork production chain, including breeding, farming, feed production, and slaughtering [3]. - The company operates through two main business segments: pig farming (selling market pigs, piglets, and breeding pigs) and slaughtering (including the sale of carcasses, cuts, and by-products) [3]. - Major products include live pigs and fresh or frozen meat products, ensuring transparency, quality control, and traceability throughout the production process [3]. Financial Performance - Revenue for the years 2022, 2023, 2024, and the six months ending June 30, 2025, was recorded at RMB 124.83 billion, RMB 110.86 billion, RMB 137.95 billion, and RMB 76.46 billion, respectively [5]. - Net profit for the same periods was RMB 14.93 billion, a loss of RMB 4.17 billion, RMB 18.93 billion, and RMB 10.79 billion [6]. - Gross profit margins were 17.5%, 3.1%, 19.1%, and 19% for the respective years [8]. Market Position - According to Frost & Sullivan, Muyuan Foods is the largest pig farming enterprise globally by production capacity and output, with a market share increasing from 2.6% in 2021 to 5.6% in 2024 [4]. - The company entered the slaughtering business in 2019, and by 2024, it ranked fifth globally and first in China in terms of slaughter volume [4]. Industry Overview - Global pork consumption has been on the rise, with a compound annual growth rate (CAGR) of 4.9% from 2020 to 2024, reaching 115.3 million tons in 2024 [10]. - China's pork consumption is stabilizing, with an expected volume of 58.2 million tons in 2024, and is projected to fluctuate around 59 million tons from 2025 to 2029 [10]. - The number of breeding sows in China decreased from 41.6 million in 2020 to 40.8 million in 2024, while the output of pigs is expected to reach approximately 707.3 million by 2029 [13]. Pricing Trends - The average market price of pigs in China has shown significant fluctuations due to supply and demand dynamics, with prices peaking at RMB 33.9 per kilogram in 2020 and dropping to RMB 15.1 per kilogram in 2023 [19].