Muyuan Foods (SZ:002714) Minsheng Securities·2024-11-01 06:30Investment Rating - The report maintains a "Recommended" rating for the company [6] Core Views - The company reported a significant increase in revenue and net profit for Q3 2024, with revenue reaching 39.91 billion yuan, up 28.3% year-on-year, and net profit at 9.65 billion yuan, up 930.2% year-on-year [1][2] - The average selling price of pigs increased to 18.9 yuan/kg in Q3 2024, contributing to improved profitability, with per-head profit estimated at approximately 605 yuan [2] - The company has adjusted its dividend payout ratio from 20% to 40% of distributable profits, enhancing investor confidence [3] Financial Performance - For the first three quarters of 2024, the company achieved revenue of 95.35 billion yuan from pig farming, a year-on-year increase of 18.1%, with a total of 50.14 million pigs sold [2] - The total cost of pig farming decreased to 15.2 yuan/kg, with Q3 2024 costs further reduced to 14.3 yuan/kg [2] - The company expects net profits for 2024, 2025, and 2026 to be 18.075 billion yuan, 28.158 billion yuan, and 31.917 billion yuan respectively, with corresponding EPS of 3.31 yuan, 5.15 yuan, and 5.84 yuan [4][5] Operational Insights - The company’s slaughtering business showed signs of recovery, with a reduction in losses to approximately 650 million yuan in Q3 2024, and an improvement in operational quality [3] - The company aims to enhance overall operational quality while increasing slaughter volumes to achieve profitability in the meat processing segment [3]