Muyuan Foods (SZ:002714) Haitong Securities·2024-08-07 08:01Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2] Core Insights - The company reported a revenue of 56.87 billion yuan for the first half of 2024, representing a year-on-year increase of 9.63%, and a net profit attributable to shareholders of 0.83 billion yuan, up 129.84% year-on-year [6] - The company has optimized its breeding costs, with the complete breeding cost dropping to nearly 14 yuan/kg by June 2024, and is expected to further decrease to 13 yuan/kg by the end of 2024 [6] - The company continues to expand its slaughtering operations, achieving a slaughter volume of 5.415 million pigs in the first half of 2024, with slaughter revenue increasing by 15.06% year-on-year [6] - The cash flow from operating activities reached 15.47 billion yuan, with a debt-to-asset ratio of 61.81%, indicating a strong financial position [6] Financial Performance Summary - The company is expected to maintain high growth in the second half of 2024, with projected earnings per share (EPS) of 2.83 yuan for 2024, 3.17 yuan for 2025, and 3.62 yuan for 2026 [7] - The estimated price-to-book (PB) ratio for 2024 is projected to be between 3.7 to 4 times, corresponding to a reasonable value range of 52.8 to 57.1 yuan [7] - The company’s revenue is forecasted to grow from 110.86 billion yuan in 2023 to 133.22 billion yuan in 2024, with a net profit expected to rebound to 15.487 billion yuan in 2024 [10]