Muyuan Foods (SZ:002714) KAIYUAN SECURITIES·2026-03-31 02:50Investment 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 has a strong cash dividend policy, distributing a total of 7.438 billion yuan, which accounts for 48% of its net profit [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 Summary - In 2025, the company sold 77.98 million pigs (+19.09%), with a full-year cost of goods sold for pigs at approximately 12 yuan/kg, down by 2 yuan/kg from the previous year [5] - The company aims to reduce the full-year cost 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] - The company’s asset-liability ratio improved to 54.15% (-4.53 percentage points) by the end of 2025, indicating a solid financial position [6] Earnings Forecast - The company’s net profit forecasts for 2026, 2027, and 2028 are 6.237 billion yuan, 29.162 billion yuan, and 37.524 billion yuan, respectively [4] - Corresponding earnings per share (EPS) are projected to be 1.08 yuan, 5.05 yuan, and 6.50 yuan for the same years [4] - The current price-to-earnings (P/E) ratios are 41.8 for 2026, 8.9 for 2027, and 7.0 for 2028 [4]