Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The company reported a net profit attributable to shareholders of 346 million yuan in 2024, with a significant improvement in profitability in 2025 Q1, achieving a net profit of 134 million yuan [4] - The company expects to reach a pig output of 8 million heads in 2025, with the complete cost dropping to 12.9 yuan per kilogram [4][5] Financial Performance Summary - In 2024, the company achieved revenue of 28.77 billion yuan, a year-on-year decrease of 13.9%, while the net profit attributable to shareholders was 346 million yuan, indicating a turnaround from losses [4] - For 2025 Q1, the company reported revenue of 6.865 billion yuan, a year-on-year increase of 2.4%, and a net profit of 134 million yuan, also indicating a turnaround [4] - The company's debt-to-asset ratio decreased to 64.4% by the end of March 2025, down 1.87 percentage points from the end of 2023 [4] Production and Cost Analysis - The company’s pig output in 2024 was 6.4046 million heads, a year-on-year increase of 5.9%, with an average profit of 175 yuan per head [5] - The complete cost of pig farming has been decreasing, falling below 14 yuan per kilogram in December 2024 and further down to 12.9 yuan per kilogram by March 2025 [5] - The company has implemented various measures to improve production efficiency, including breed improvement and enhanced biosecurity measures, leading to better survival rates for piglets [5] Future Projections - The company forecasts pig output to reach 8 million heads in 2025, 8.8 million heads in 2026, and 9.68 million heads in 2027, with corresponding revenues of 29.26 billion yuan, 30.14 billion yuan, and 30.91 billion yuan [7] - The projected net profit for 2025 is 755 million yuan, with significant growth expected in subsequent years [7] Key Financial Metrics - The company’s projected revenue for 2025 is 29.26 billion yuan, with a year-on-year growth of 1.7% [9] - The net profit attributable to shareholders is expected to be 755 million yuan in 2025, reflecting a year-on-year increase of 118.4% [9] - The company’s P/E ratio is projected to decrease from 54.13 in 2024 to 23.46 in 2025, indicating improved valuation metrics [11]

Core Insights - In April, several listed pig farming companies reported increases in both pig sales volume and revenue compared to previous months and the same month last year [1][2][3] - Analysts predict that pig prices will remain stable with slight fluctuations, while there is potential for increased sales volume in the second half of the year [1] Group 1: Industry Performance - In the first quarter, the national pig output reached 19,476 million heads, a slight increase of 20,000 heads year-on-year, reversing a 2.2% decline from the previous year [1] - The total pork production in the first quarter was 16.02 million tons, up by 190,000 tons or 1.2% year-on-year [1] - By the end of the first quarter, the national pig inventory stood at 41,731 million heads, reflecting a year-on-year increase of 881,000 heads or 2.2% [1] Group 2: Company-Specific Sales Data - Muyuan Foods sold 6.573 million pigs in April, with a revenue of 12.595 billion yuan, marking a year-on-year increase of 51.80% in sales volume and 53.42% in revenue [1] - Wens Foodstuff Group reported sales of 3.176 million pigs in April, generating revenue of 5.545 billion yuan, with a year-on-year increase of 27.90% in sales volume [2] - Dongrui Food Group sold 170,500 pigs in April, achieving a revenue of 223 million yuan, reflecting a 24.56% increase in sales volume compared to the previous month [2] - Hunan Zhenghong Technology Development sold 11,200 pigs in April, with a revenue of 9.7964 million yuan, showing a year-on-year increase of 109.24% in sales volume [2] - Aksu Xingjiang Muge Food, a subsidiary of Chen Kemin Foods, sold 63,900 pigs in April, with a revenue of 70.9048 million yuan, indicating a year-on-year increase of 33% in sales volume [3]