Muyuan Foods (SZ:002714)2024-08-06 01:31Investment Rating - The report maintains a "Buy" rating for the company [7]. Core Insights - The company reported a turnaround in performance for Q2 2024, achieving a net profit of 829 million yuan, a significant increase of 129.84% year-on-year, driven by increased sales volume and rising pig prices [7]. - The average selling price of pigs in Q2 2024 was 16.39 yuan/kg, reflecting a year-on-year increase of 14.49% [7]. - The company's breeding costs have decreased to approximately 14 yuan/kg, down by 1 yuan/kg year-on-year, attributed to improved breeding efficiency and optimized feed costs [7]. - The company has a stable growth in breeding capacity, with a total of 3.309 million breeding sows as of the end of Q2 2024, ensuring the target of 66-72 million pigs to be sold in 2024 [7]. - The slaughtering business is expanding, with 10 slaughterhouses in operation and a capacity of 29 million pigs per year, although it reported a loss of around 500 million yuan in H1 2024 due to low capacity utilization [7]. Financial Summary - For H1 2024, the company achieved total revenue of 56.866 billion yuan, a year-on-year increase of 9.63% [9]. - The projected revenues for 2024, 2025, and 2026 are 133.788 billion yuan, 152.489 billion yuan, and 153.651 billion yuan, respectively, with growth rates of 20.7%, 14.0%, and 0.8% [9]. - The forecasted net profits for the same years are 15.361 billion yuan, 21.963 billion yuan, and 18.572 billion yuan, with corresponding PE ratios of 16X, 11X, and 13X [9].