Muyuan Foods (SZ:002714) KAIYUAN SECURITIES·2025-10-31 14:23Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The company has demonstrated excellent breeding cost management and has achieved profitability in its slaughtering operations, indicating a positive operational trend [1] - For the first three quarters of 2025, the company reported revenue of 111.79 billion yuan, a year-on-year increase of 15.52%, and a net profit attributable to shareholders of 14.779 billion yuan, up 41.01% year-on-year [1] - The company has adjusted its profit forecasts for 2025-2027 due to declining pig prices and macroeconomic capacity adjustments, with expected net profits of 16.389 billion, 19.400 billion, and 25.319 billion yuan respectively for those years [1][5] Financial Performance Summary - In Q3 2025, the company achieved revenue of 35.327 billion yuan, a decrease of 11.48% year-on-year, and a net profit of 4.249 billion yuan, down 55.98% year-on-year [1] - The company’s total cost of breeding has decreased to 11.6 yuan per kilogram as of September 2025, down 1.5 yuan per kilogram from January 2025 [5] - The company’s breeding output for Q1-Q3 2025 was 57.323 million pigs, a year-on-year increase of 27.01%, with Q3 output at 18.929 million pigs, up 17.21% year-on-year [5] Slaughtering Operations - The company’s slaughtering volume for Q1-Q3 2025 was 19.16 million pigs, a year-on-year increase of 140%, with a capacity utilization rate of 88% [6] - The slaughtering segment turned profitable in Q3 2025, and the company plans to continue expanding its slaughtering capacity in Q4 2025 and 2026 [6] Cost Management and Efficiency - The company has focused on reducing breeding costs and improving production efficiency, with a PSY (pigs per sow per year) of 29 and a feed-to-meat ratio of 2.62 as of September 2025 [5] - The company is actively reducing its breeding stock to emphasize high-quality development and cost reduction [5]