Muyuan Foods (SZ:002714) ZHESHANG SECURITIES·2025-10-30 11:52Investment Rating - The investment rating for the company is "Buy" [5] Core Insights - The company has shown a significant increase in sales volume, with 5.573 million pigs sold in September 2025, representing a year-on-year growth of 11.05%. However, the average selling price decreased by 30.94% to 12.88 yuan/kg, leading to a 22.46% decline in sales revenue to 9.066 billion yuan [1][2] - The company is focusing on cost reduction and efficiency improvement, with the complete cost of pig farming dropping to approximately 11.6 yuan/kg in September 2025, with a target to reduce it further to 11 yuan/kg by year-end. This cost reduction is driven by improvements in production performance and a decrease in unit period expenses [2][3] - The company is actively optimizing its production capacity by reducing the number of breeding sows to 3.305 million and improving the quality of the breeding herd. Additionally, the average weight of pigs sold has been reduced to 120 kg, and sales to secondary fattening customers have been halted [3] Financial Summary - The company is transitioning from a high-growth phase to a high-quality development phase, with projected revenues of 144.61 billion yuan, 155.49 billion yuan, and 160.69 billion yuan for 2025, 2026, and 2027 respectively. The net profit attributable to the parent company is expected to be 18.471 billion yuan, 24.916 billion yuan, and 30.057 billion yuan for the same years, with corresponding EPS of 3.38 yuan, 4.56 yuan, and 5.50 yuan [4][10]