Muyuan Foods (SZ:002714) Guan Cha Zhe Wang·2026-02-08 10:27Core Viewpoint - Muyuan Foods has completed its A+H share capital layout with its listing on the Hong Kong Stock Exchange, aiming to accelerate its international expansion despite a lukewarm market response and declining performance metrics [1][2][3]. Group 1: Company Performance and Market Response - Muyuan Foods' stock was priced at HKD 39 per share during its Hong Kong IPO, with a closing price of HKD 40.52, reflecting a modest increase of 3.9% on its first day [1]. - The total market capitalization of Muyuan Foods reached HKD 111.22 billion, which is relatively low compared to the overall market size of HKD 2300 billion [1]. - The company's performance has been declining, with a projected net profit for the previous year between CNY 151 billion and CNY 161 billion, representing a year-on-year decrease of 14.93% to 20.21% [3]. Group 2: Sales and Market Trends - In January, Muyuan Foods sold 7.009 million pigs, with an average selling price of CNY 12.57 per kilogram, down 16.92% year-on-year, leading to a total sales revenue of CNY 10.566 billion, a decline of 11.93% [4]. - The average price of pigs has dropped by CNY 1.22 per kilogram since mid-January, indicating ongoing market volatility [4]. Group 3: International Expansion Strategy - Muyuan Foods is focusing on international markets, particularly Southeast Asia, to mitigate domestic market challenges, with plans to establish operations in Vietnam [5][6]. - The company has partnered with BAF Agricultural Joint Stock Company in Vietnam, planning to invest approximately CNY 3.2 billion to build a high-tech pig farming facility [5]. - The company aims to leverage its technological advantages to penetrate markets in Vietnam, Thailand, and the Philippines, where pork consumption is expected to rise due to increasing income levels [5][6]. Group 4: Industry Context and Challenges - The Chinese pork industry is facing a stable demand environment, making it difficult for companies like Muyuan Foods to find growth opportunities domestically [2][6]. - The international expansion strategy comes with risks, including economic fluctuations, regulatory challenges, and political instability in target markets [7][8].