Muyuan Foods (SZ:002714) Zhong Guo Yin He Zheng Quan·2026-03-30 05:24Investment Rating - The report maintains a "Recommended" rating for the company, Muyuan Foods (stock code: 002714.SZ) [1] Core Insights - Muyuan Foods has optimized its pig farming costs significantly, leading to annual profitability in its slaughter and meat business. The company reported a revenue of 144.15 billion yuan for 2025, a year-on-year increase of 4.49%, while the net profit attributable to shareholders was 15.49 billion yuan, a decrease of 13.39% [4] - The company plans to sell between 75 million to 81 million pigs in 2026, with a projected average selling price of approximately 13.41 yuan/kg, reflecting an 18.73% year-on-year decline [4] - The slaughter and meat business achieved a revenue of 45.23 billion yuan, a year-on-year increase of 86.32%, marking its first annual profitability [4] Financial Performance Summary - In 2025, the company achieved a gross profit margin of 17.82%, down 1.23 percentage points year-on-year, with a total cost of pig farming at approximately 12 yuan/kg, a reduction of about 2 yuan/kg compared to the previous year [4] - The company’s total assets at the end of 2025 were valued at 1,006.34 billion yuan, with a debt-to-asset ratio of 54.15%, indicating an improvement [4] - The projected earnings per share (EPS) for 2026 and 2027 are 1.07 yuan and 5.32 yuan, respectively, with corresponding price-to-earnings (PE) ratios of 42 times and 8 times [4][5] Financial Forecasts - The company’s revenue is expected to decline to 125.70 billion yuan in 2026, a decrease of 12.80%, before rebounding to 153.21 billion yuan in 2027, an increase of 21.89% [5] - The net profit is forecasted to drop to 6.20 billion yuan in 2026, a decline of 59.97%, before recovering to 30.73 billion yuan in 2027, reflecting a growth of 395.77% [5] - The return on equity (ROE) is projected to be 7.84% in 2026 and rise to 28.38% in 2027 [5]