Muyuan Foods (SZ:002714) HTSC·2025-08-21 07:21Investment Rating - The report maintains a "Buy" rating for the company [5][4] Core Views - The company has shown significant growth in revenue and net profit, with H1 2025 revenue reaching 764.63 billion RMB, a year-on-year increase of 34.46%, and net profit of 105.30 billion RMB, a staggering year-on-year increase of 1169.77% [1][2] - Despite a downward trend in pig prices, the company has managed to increase per-head profitability due to decreasing costs, with June's total cost falling below 12.1 RMB/kg [1][2] - The company is actively pursuing international expansion, having established a subsidiary in Vietnam and submitted an application for H-share listing in Hong Kong [3] Summary by Sections Financial Performance - In H1 2025, the company sold 46.91 million pigs, a 45% increase year-on-year, with Q2 revenue of 404.02 billion RMB, up 32.06% year-on-year and 12.04% quarter-on-quarter [2] - The average profit per pig in Q2 was approximately 250 RMB, significantly higher than the industry average of about 55 RMB [2] Dividend Policy - The company plans to distribute a cash dividend of 50 billion RMB for H1 2025, with a payout ratio of 47.5% [3] International Expansion - The company is focusing on international markets, having set up a subsidiary in Vietnam and applied for H-share listing in Hong Kong, indicating a strategic move to enhance its global presence [3] Profit Forecast and Valuation - The report forecasts net profits for 2025, 2026, and 2027 to be 197 billion RMB, 183 billion RMB, and 472 billion RMB respectively, maintaining a target price of 51.30 RMB based on a PB ratio of 3.3x for 2025 [4][5]