Muyuan Foods (SZ:002714) China Post Securities·2025-08-26 06:31Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative price increase of over 20% compared to the benchmark index within the next six months [6][11]. Core Insights - The company reported a significant revenue increase of 34.46% year-on-year, reaching 764.63 billion yuan, with a remarkable net profit growth of 1169.77% to 105.30 billion yuan, driven by declining costs [3][4]. - The company has a strong cash flow position, with net cash flow from operating activities amounting to 173.51 billion yuan, a 12.13% increase year-on-year, and a reduced debt ratio of 56.06% as of the end of Q2 2025 [3][4]. - The company is committed to returning value to shareholders, proposing a cash dividend of 9.32 yuan per 10 shares, totaling 50.02 billion yuan, which represents 47.50% of the net profit for the first half of 2025 [5]. Summary by Sections Company Overview - Latest closing price is 51.38 yuan, with a total market capitalization of 280.7 billion yuan and a P/E ratio of 15.57 [2]. Financial Performance - The company achieved a net profit of 105.30 billion yuan in the first half of 2025, with a significant increase in sales volume of live pigs by 44.84% year-on-year [3][4]. - The average cost of pig farming decreased from 13.1 yuan/kg in January to 11.8 yuan/kg in July, positioning the company as a leader in cost efficiency within the industry [4]. Future Outlook - The earnings per share (EPS) forecasts for 2025, 2026, and 2027 are projected at 3.57 yuan, 5.26 yuan, and 5.58 yuan respectively, reflecting a positive growth trajectory [6][10].