Muyuan Foods (SZ:002714) Huaan Securities·2024-10-30 06:43Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a net profit attributable to shareholders of 10.48 billion yuan for Q3, with a significant quarterly dividend and a revised profit distribution plan [1] - The company achieved a revenue of 96.78 billion yuan from January to September, representing a year-on-year growth of 16.6% [1] - The company plans to distribute a total cash dividend of approximately 4.5 billion yuan, marking its first quarterly dividend [1] - The company aims to distribute at least 40% of its distributable profits in cash annually over the next three years, up from the previous 20% [1] - The company has successfully reduced its total cost of raising pigs to 13.7 yuan per kilogram in Q3, with a total pig output of 50.144 million heads from January to September, a year-on-year increase of 6.7% [1][2] Financial Performance Summary - For the first nine months of 2023, the company reported a total revenue of 96.78 billion yuan, with a net profit of 10.48 billion yuan [1] - The company’s total assets as of September 2023 were 195.405 billion yuan, with a debt-to-asset ratio of 58.4%, down 3.4 percentage points from June [1][4] - The company’s projected revenues for 2024, 2025, and 2026 are 130.128 billion yuan, 138.581 billion yuan, and 136.894 billion yuan, respectively, with corresponding net profits of 17.675 billion yuan, 19.278 billion yuan, and 9.543 billion yuan [2][3][5] - The company’s gross margin is expected to improve significantly to 20.9% in 2024, compared to 3.1% in 2023 [3][5] Operational Insights - The company has set a target of 6.6 to 7.2 million heads for pig output in 2024, with a projected growth in breeding stock [2] - The company is focusing on enhancing its slaughtering business profitability and has a current slaughtering capacity of 29 million heads per year [1][2] - The company plans to improve operational efficiency through digitalization and innovation in slaughtering processes [2]