Muyuan Foods (SZ:002714)2024-04-28 01:30Investment Rating - The investment rating for the company is "Recommended" with a maintained rating [1]. Core Views - The company reported a significant decline in performance due to the low prices of pigs, with a revenue of 110.86 billion yuan in 2023, down 11.19% year-on-year, and a net profit attributable to shareholders of -4.26 billion yuan, a shift from profit to loss [1]. - The company expects to sell between 66 million to 72 million pigs in 2024, reflecting a year-on-year increase of 3.4% to 12.8% [1]. - The company has improved its operational efficiency in the slaughtering business, with a utilization rate increase from 25% in 2022 to 46% in 2023 [1]. Financial Summary - In 2023, the company’s total revenue was 110.86 billion yuan, with a year-on-year growth rate of -11.19%. The net profit attributable to shareholders was -4.26 billion yuan, a decrease of 132.14% [6]. - The estimated earnings per share (EPS) for 2024 and 2025 are projected to be 2.92 yuan and 5.40 yuan, respectively, with corresponding price-to-earnings (PE) ratios of 15 times and 8 times [1][6]. - The company’s total assets at the end of 2023 were approximately 195.40 billion yuan, with a debt-to-asset ratio of 63.59%, an increase of 7.22 percentage points year-on-year [1][7]. Production and Sales - In 2023, the company sold approximately 63.82 million pigs, a year-on-year increase of 4.27%, with an average selling price of about 14.5 yuan per kg, down 20.8% year-on-year [1]. - The company plans to enhance its slaughtering and meat processing capabilities in 2024 through market expansion and channel development [1].