Muyuan Foods (SZ:002714) Guoxin Securities·2025-08-21 15:22Investment Rating - The investment rating for the company is "Outperform the Market" [5] Core Views - The company has shown significant growth in profitability, with a 1169.77% year-on-year increase in net profit to 10.53 billion yuan in H1 2025, alongside a 34.46% increase in revenue to 76.463 billion yuan [1][9] - The company is on track to achieve its cost reduction target of 12 yuan/kg for pig farming, with the cost having decreased to approximately 11.8 yuan/kg by July 2025 [1] - The company is actively pursuing international expansion, having established a subsidiary in Vietnam and applied for an overseas listing in Hong Kong [3] Financial Performance - In H1 2025, the company sold 46.91 million pigs, including 38.394 million commercial pigs, marking a significant year-on-year increase [1][9] - The operating cash flow for H1 2025 increased by 12.1% year-on-year to 17.351 billion yuan, representing 22.69% of total revenue, indicating improved cash flow generation capabilities [2][21] - The company plans to distribute a total cash dividend of 6.112 billion yuan for the mid-year, which accounts for 58.04% of net profit [2] Financial Forecasts - The projected net profits for the company from 2025 to 2027 are 19.509 billion yuan, 16.436 billion yuan, and 16.211 billion yuan, respectively, with corresponding EPS of 3.57 yuan, 3.01 yuan, and 2.97 yuan [3][23] - The company's PE ratios are expected to be 11, 13, and 13 for the years 2025, 2026, and 2027, respectively [3][23] - The company's debt ratio decreased by 5.75 percentage points year-on-year to 56.06% by the end of H1 2025 [2]