Muyuan Foods (SZ:002714) 21世纪经济报道·2025-08-21 13:47Core Viewpoint - The article highlights the significant financial performance of Muyuan Foods, a leading pig farming company in China, showcasing a remarkable recovery in profits and a strategic focus on cost reduction and production capacity management [3][4][6]. Financial Performance - In the first half of the year, Muyuan Foods reported a 34% increase in revenue, with net profit exceeding 10 billion yuan, reflecting a growth rate of over 1100% compared to the previous year [3][4]. - The company's net profit reached 10.53 billion yuan, with a profit margin increase of 10.59 percentage points, bringing the gross margin to 18.72% [6][7]. - The significant profit growth is attributed to a low profit base from the previous year and a notable decrease in production costs, which fell from 14 yuan/kg to 11.8 yuan/kg [6][7]. Sales and Production - Muyuan Foods sold 38.39 million pigs in the first half of the year, generating sales revenue of 70.87 billion yuan, with a notable increase in the sale of piglets, which rose by 168% [7]. - The company aims to reduce average production costs to 12 yuan/kg for the year, with a target of 11 yuan/kg by year-end, indicating potential for further profit growth [7][8]. Industry Trends - The chairman of Muyuan Foods stated that the pig farming industry in China is transitioning towards quality improvement, moving from quantity to quality [8][9]. - The company is actively managing production capacity, planning to reduce the number of breeding sows to 3.3 million by the end of the year, which is a more significant reduction than the national target [11][12]. Capacity Management - Muyuan Foods has implemented measures to control production capacity, including reducing the weight of pigs at slaughter to alleviate supply pressure [12][13]. - The company has ceased selling pigs for secondary fattening, ensuring that all pigs are directed to slaughterhouses, which is expected to stabilize market prices [12][13].