Muyuan Foods (SZ:002714) Nan Fang Du Shi Bao·2026-02-07 09:39Core Viewpoint - Muyuan Foods has successfully listed on the Hong Kong Stock Exchange, becoming the first company in China's pig farming industry to achieve an "A+H" listing, with its stock closing at HKD 40.52 per share, a 3.9% increase on the first day of trading [2][3]. Fundraising and Strategic Goals - The company raised funds through a global offering of 274 million shares at an issue price of HKD 39 per share, attracting cornerstone investors such as Charoen Pokphand Group and UBS AM Singapore, with total subscriptions amounting to approximately HKD 5.342 billion [3][4]. - 60% of the raised funds will be allocated for overseas expansion, while 30% will focus on technological innovation, and 10% will be used for operational liquidity [4]. Overseas Expansion Plans - Approximately HKD 62.76 billion will be invested in expanding the company's overseas business, including strengthening its presence in Southeast Asia and enhancing the global supply chain [4]. - The company has already established a wholly-owned subsidiary in Vietnam and is collaborating with local enterprises on a project to raise 1.6 million pigs annually [4]. Financial Performance and Market Conditions - In January 2026, Muyuan Foods sold 7.01 million pigs, a year-on-year increase of 2.73%, but the average selling price dropped to RMB 12.57 per kilogram, a decline of 16.92% [8]. - The company's sales revenue for the same period was RMB 10.566 billion, down 11.93% year-on-year [8]. - The company anticipates a decline in net profit for the full year 2025, projecting a decrease of 12.20% to 17.79% compared to the previous year, with net profit expected to be between RMB 147 billion and RMB 157 billion [10]. Market Outlook - The pig farming industry is expected to undergo a market-driven capacity reduction, which may help stabilize prices in the long term [11]. - Analysts predict that seasonal demand leading up to the 2026 Spring Festival may result in a temporary rebound in pig prices, although overall supply remains abundant [11][12].