Muyuan Foods (SZ:002714) GF SECURITIES·2024-10-10 02:52Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 57.31 CNY per share, indicating a potential upside from the current price of 41.99 CNY [4]. Core Views - The company achieved significant growth in Q3 2024, with a forecasted net profit attributable to shareholders of 10-11 billion CNY, representing a year-on-year increase of 642.79%-697.07%. The non-recurring net profit is expected to be 11.5-12.5 billion CNY, up 844.91%-909.68% [2]. - The increase in profits is attributed to rising pig prices, increased sales volume, and declining breeding costs. The average breeding cost in Q3 is estimated to be around 13.7-13.9 CNY per kilogram, down 0.4-0.6 CNY from Q2 [2]. - The company is steadily advancing its slaughtering and meat processing business, with a total of 7.11 million pigs slaughtered from January to August 2024, and a current slaughtering capacity of 29 million pigs per year [2]. - The company plans to repurchase shares worth 3-4 billion CNY, which is expected to reflect confidence in its future development [2]. Financial Summary - For the first nine months of 2024, the company reported a 6.7% year-on-year increase in pig sales, with a total of 50.144 million pigs sold [2]. - The estimated earnings per share (EPS) for 2024-2026 are projected to be 3.61, 4.04, and 5.24 CNY, respectively [2]. - The company’s revenue for 2024 is expected to be 135.741 billion CNY, with a growth rate of 22.4% [3]. - The net profit for 2024 is projected at 19.73 billion CNY, reflecting a growth rate of 562.8% [3].