Muyuan Foods (002714) 东兴证券·2024-07-15 03:00Investment Rating - The report maintains a "Strong Buy" rating for the company [2][3]. Core Views - The company is expected to achieve a net profit of 0.9 to 1.1 billion yuan in the first half of 2024, representing a year-on-year increase of 132.27% to 139.44%, marking a turnaround from losses in the previous year [2]. - The total number of pigs sold in the first half of 2024 is projected to be 32.388 million, a 7% increase year-on-year, with a continued decline in production costs due to lower feed prices [2]. - The company anticipates a net profit of 3.079 to 3.279 billion yuan in the second quarter of 2024, benefiting from rising pig prices and decreasing costs [2]. - The company aims to enhance its meat processing segment's profitability by expanding market channels and optimizing product structure [2]. Financial Forecasts - The company is projected to achieve net profits of 14.08 billion, 27.20 billion, and 21.95 billion yuan for the years 2024, 2025, and 2026 respectively, with corresponding EPS of 2.65, 4.97, and 4.01 yuan [3][4]. - The PE ratios for the same years are expected to be 17, 9, and 11 times [3]. - Revenue is forecasted to grow from 130.04 billion yuan in 2024 to 149.35 billion yuan in 2025, before slightly declining to 144.45 billion yuan in 2026 [4]. Company Overview - The company is a leading integrated agricultural enterprise in China, specializing in feed processing, pig breeding, and meat processing, and is recognized as one of the largest pig breeding companies in the country [5]. Trading Data - The company's total market capitalization is approximately 241.08 billion yuan, with a circulating market value of 168.09 billion yuan [6]. - The stock has traded within a range of 49.35 to 31.64 yuan over the past 52 weeks [6].