Muyuan Foods (SZ:002714) Haitong Securities·2024-05-08 07:02Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2] Core Views - The report emphasizes the company's long-term value despite short-term challenges, highlighting a stable growth in hog production and an expected recovery in profitability as market conditions improve [6][7] - The company reported a revenue of 110.86 billion yuan in 2023, a decrease of 11.2% year-on-year, with a net profit attributable to shareholders of -4.26 billion yuan [6][8] - The report projects a recovery in earnings with expected EPS of 1.12 yuan in 2024 and 2.81 yuan in 2025, driven by improved operational efficiency and cost management [7][8] Summary by Sections Financial Performance - In 2023, the company achieved a revenue of 110.86 billion yuan, down 11.2% year-on-year, and a net profit of -4.26 billion yuan [6][8] - The average selling price of hogs in 2023 was approximately 14.5 yuan/kg, below the cost line, leading to financial pressure [6] - The company maintained a stable hog production scale, with 63.82 million hogs sold in 2023, a 4.3% increase year-on-year [6] Operational Efficiency - The company improved its slaughtering efficiency, processing 13.26 million hogs in 2023, an increase of 80.1% year-on-year, with slaughtering revenue rising by 48.5% [6] - The utilization rate of slaughtering capacity increased to 46%, with a reduction in per-head losses [6] Future Outlook - The company is expected to achieve a hog production volume of 66-72 million heads in 2024, representing a year-on-year growth of 3.4% to 12.8% [7] - The report anticipates a recovery in profitability as the hog market stabilizes, with projected EPS of 1.12 yuan in 2024 and 2.81 yuan in 2025 [7][8] - The company is focusing on high-quality development, controlling capital expenditures, and optimizing operational strategies [7]