Muyuan Foods (SZ:002714) Dongxing Securities·2025-11-05 09:26Investment Rating - The report maintains a "Strong Buy" rating for the company [2][5]. Core Insights - The company reported a revenue of 111.79 billion yuan for the first three quarters of 2025, a year-on-year increase of 15.52%, and a net profit attributable to shareholders of 14.78 billion yuan, up 41.01% year-on-year [3]. - In the third quarter alone, the company achieved a revenue of 35.33 billion yuan, a decrease of 11.48% year-on-year, and a net profit of 4.25 billion yuan, down 55.98% year-on-year [3]. - The company has strengthened its cost advantages through continuous cost reduction, with the complete breeding cost dropping to 11.6 yuan/kg by September 2025, down 1.5 yuan/kg from January [3]. - The company has sold 57.32 million pigs in the first three quarters of 2025, a 27.0% increase year-on-year [3]. - The slaughtering business has turned profitable in the third quarter of 2025, with a significant increase in slaughter volume, reaching 19.16 million pigs, a 140% year-on-year growth [4]. - The company aims to reduce its debt ratio to below 50% and is actively exploring overseas business opportunities, including a partnership with BAF in Vietnam for a breeding project [4]. Financial Performance Summary - The company expects net profits for 2025, 2026, and 2027 to be 17.06 billion, 24.09 billion, and 34.17 billion yuan respectively, with EPS projected at 3.12, 4.41, and 6.26 yuan [5]. - The company’s revenue is forecasted to grow from 110.86 billion yuan in 2023 to 162.67 billion yuan in 2027, with a compound annual growth rate of approximately 7.05% [6]. - The net profit margin is expected to improve significantly, with a projected net profit margin of 22.23% by 2027 [6]. Company Overview - The company is a key player in the agricultural industry, specializing in feed processing, pig breeding, and slaughtering, and is recognized as one of the largest integrated pig farming enterprises in China [7].