Muyuan Foods (SZ:002714) KAIYUAN SECURITIES·2026-03-31 01:38Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has demonstrated significant cost advantages and efficiency improvements, with its slaughtering business achieving annual profitability for the first time [4][6] - In 2025, the company reported revenue of 144.145 billion yuan (+4.49%) and a net profit attributable to shareholders of 15.487 billion yuan (-13.39%) [4] - The company is expected to maintain profitability through effective cost control and a dual-driven model of pig farming and slaughtering [4][5] Financial Performance Summary - In Q4 2025, revenue was 32.355 billion yuan (-21.41%) and net profit was 708 million yuan (-90.43%) [4] - The total cash dividend for 2025 was 7.438 billion yuan, accounting for 48% of the net profit attributable to shareholders [4] - The company has adjusted its profit forecasts for 2026-2027 due to changes in industry fundamentals, with expected net profits of 6.237 billion yuan and 29.162 billion yuan for 2026 and 2027, respectively [4][5] Operational Highlights - The company sold 77.98 million pigs in 2025 (+19.09%), with a target of 75-81 million pigs for 2026 [5] - The complete cost of pig farming was approximately 12 yuan/kg in 2025, with a target to reduce it to below 11.5 yuan/kg in 2026 [5] - The slaughtering business achieved revenue of 45.228 billion yuan (+86.32%) in 2025, with a gross margin of 2.67% [6] Financial Metrics - The company's total market capitalization is 249.567 billion yuan, with a circulating market capitalization of 164.654 billion yuan [1] - The expected earnings per share (EPS) for 2026-2028 are projected to be 1.08 yuan, 5.05 yuan, and 6.50 yuan, respectively [4] - The current price-to-earnings (P/E) ratios are 41.8 for 2026, 8.9 for 2027, and 7.0 for 2028 [4]