Chang Jiang Shang Bao·2026-01-13 00:01Core Viewpoint - The company, Wens Foodstuff Group, is facing significant pressure on its operating performance for the fiscal year 2025, with expected net profit declines of 40.73% to 46.12% compared to the previous year [1][4]. Financial Performance - For 2025, Wens expects a net profit of 5 billion to 5.5 billion yuan, down from 9.28 billion yuan in the previous year, indicating a decrease of approximately 42.8 billion to 37.8 billion yuan [4]. - In the first three quarters of 2025, the company reported revenue of approximately 758 billion yuan, which is nearly flat year-on-year, but net profit fell by about 18% to 5.256 billion yuan [1][4]. - The fourth quarter is projected to be particularly challenging, with a potential net loss if the lower end of the profit forecast is realized [5][6]. Sales and Pricing - Despite an increase in product sales, with 40.4769 million pigs and 1.303 billion chickens sold in 2025, the company is experiencing a decline in net profit due to falling sales prices [6][7]. - The average selling price for pigs decreased by 17.95% to 13.71 yuan per kilogram, while the average price for chickens fell by 9.80% to 11.78 yuan per kilogram [6]. Industry Context - The livestock industry is characterized by significant cyclical fluctuations, and Wens has struggled to mitigate these cycles effectively [8]. - The company has been implementing cost-cutting measures, but the reduction in sales prices has led to a decline in profitability despite lower production costs [9][10]. Competitive Landscape - Wens Foodstuff Group's market performance has lagged behind its competitor, Muyuan Foods, which reported a net profit of 14.779 billion yuan in the first three quarters of 2025, a 41.01% increase year-on-year [11][13]. - The gap in market capitalization between Wens and Muyuan has widened, with Wens's market value at 113.4 billion yuan, which is 156.2 billion yuan less than Muyuan's [3][13].