Company Overview - Muyuan Foods Co., Ltd. (referred to as "the Company") has submitted an application to list on the Hong Kong Stock Exchange, with Morgan Stanley, CITIC Securities, and Goldman Sachs as joint sponsors [1] - The Company is a technology-driven leader in the pork industry, operating a vertically integrated business model that covers the entire pork production chain, including breeding, farming, feed production, and slaughtering [3][4] - The Company's main products include live pigs (commercial pigs, piglets, and breeding pigs) and fresh and frozen meat products, ensuring food safety and quality control through a fully transparent production process [3] Financial Performance - The Company recorded revenues of RMB 124.83 billion, RMB 110.86 billion, RMB 137.95 billion, and RMB 76.46 billion for the years 2022, 2023, 2024, and the six months ending June 30, 2025, respectively [5] - Net profits for the same periods were RMB 14.93 billion, a loss of RMB 4.17 billion, RMB 18.93 billion, and RMB 10.79 billion [6] - The gross profit margins were 17.5%, 3.1%, 19.1%, and 19% for the years 2022, 2023, 2024, and the six months ending June 30, 2025, respectively [8] Market Position - According to Frost & Sullivan, the Company is the largest pig farming enterprise globally by production capacity and output, with a market share increase from 2.6% in 2021 to 5.6% in 2024 [4] - The Company's slaughtering and meat business ranked fifth globally and first in China by the number of pigs slaughtered in 2024, with the highest compound annual growth rate in revenue among large Chinese competitors from 2021 to 2024 [4] Industry Overview - Global pork consumption has been on the rise, with a compound annual growth rate of 4.9% from 2020 to 2024, reaching 115.3 million tons in 2024 [10] - China is the largest pork producer and consumer, with pork consumption stabilizing around 58.2 million tons in 2024 and expected to fluctuate around 59 million tons from 2025 to 2029 [10] - The number of breeding sows in China decreased from 41.6 million in 2020 to 40.8 million in 2024, while the output of pigs is projected to grow at a compound annual growth rate of 7.5% from 2020 to 2024 [13] Shareholding Structure - As of November 20, 2025, the controlling shareholders, including Mr. Qin Yinglin, Ms. Qian Ying, and Muyuan Group, collectively hold approximately 54.91% of the total share capital and control 55.62% of the voting rights [25]

Core Insights - Muyuan Foods Co., Ltd. has submitted an application to list on the Hong Kong Stock Exchange, with Morgan Stanley, CITIC Securities, and Goldman Sachs as joint sponsors [1] - The company is a technology-driven leader in the pork industry, recognized as a pioneer in smart pig farming, and operates a vertically integrated business model covering the entire pork supply chain [1] Industry Position - According to Frost & Sullivan, since 2021, Muyuan Foods has been the largest pig farming enterprise globally in terms of production capacity and slaughter volume, maintaining the highest slaughter volume for four consecutive years [1] - The company expanded into the pork slaughtering and meat processing business in 2019 to enhance its operational advantages across the entire supply chain [1] Financial Performance - By 2024, Muyuan Foods is projected to rank fifth globally and first in China in terms of slaughter numbers, according to Frost & Sullivan [1] - The revenue compound annual growth rate (CAGR) of the company's slaughtering and meat processing business from 2021 to 2024 is expected to be the highest among large peers in the Chinese industry [1]

Core Viewpoint - Muyuan Foods Co., Ltd. has submitted an application to list on the Hong Kong Stock Exchange, with Morgan Stanley, CITIC Securities, and Goldman Sachs as joint sponsors. The company is recognized as a technology-driven leader in the pork industry, employing a vertically integrated business model that covers the entire pork production chain from breeding to slaughtering and meat processing [1]. Group 1: Company Overview - Muyuan Foods is the largest pig farming enterprise globally in terms of production capacity and output since 2021, maintaining the highest pig output for four consecutive years [1]. - The company expanded into the pork slaughtering and meat processing business in 2019 to enhance its operational advantages across the entire industry chain [1]. Group 2: Market Position and Growth - According to Frost & Sullivan, Muyuan Foods is projected to rank fifth globally and first in China in terms of slaughtering numbers by 2024 [1]. - The revenue compound annual growth rate (CAGR) of the company's slaughtering and meat processing business from 2021 to 2024 is the highest among large peers in the Chinese industry [1].

Core Viewpoint - The article discusses the current state of the consumer market, highlighting that consumer sectors have underperformed for four consecutive years, suggesting a potential rebound in the upcoming year if certain conditions are met [2][3]. Group 1: Current Market Conditions - The overall consumer performance this year has been poor due to a general economic slowdown, with retail sales growth at only 2.9% in October [5]. - Real estate prices have been declining, with predictions of continued downward pressure, impacting household wealth and consumer spending [7][13]. - The largest segment in consumer stocks is liquor, particularly Maotai, which has seen its wholesale price drop below 1600, down from over 3800 four years ago, indicating a significant decline in consumer sentiment [10]. Group 2: Future Consumer Outlook - If there is a recovery in the overall economy, low-priced consumer stocks with reasonable valuations could see significant growth [12]. - However, the likelihood of an economic recovery next year is low, with continued declines in real estate prices and a slowdown in exports [14]. - The article suggests that consumer spending will remain constrained due to shrinking household wealth, with a potential recovery not expected until 2027 [13]. Group 3: Specific Consumer Opportunities - Despite the overall economic challenges, there are specific consumer segments that may present opportunities, such as tourism-related spending from foreign visitors and affluent domestic consumers [16][18]. - The article emphasizes the importance of focusing on sectors with significant scale advantages, which can outperform competitors even in a sluggish economy [18]. - New consumption trends, such as trendy toys, gold jewelry, and pet products, may still show growth potential despite the overall market conditions [18]. Group 4: Monitoring and Strategy - Investors are advised to keep an eye on policy changes that could impact the overall economy and consumer spending, while focusing on specific segments that are less affected by the broader economic downturn [20]. - The article suggests that the consumer sector should prioritize niche markets and segments that cater to affluent consumers or benefit from international tourism [18][20].

Group 1: Pork Price Outlook - Pork prices are expected to improve quarter-on-quarter in Q2 2026, with a significant year-on-year increase anticipated in Q3 2026[1] - As of the end of Q3 2025, the breeding sow inventory stands at 40.35 million, with a target of reducing to 39 million, indicating a necessary monthly reduction of 280,000 sows[1] - The year-on-year decline in breeding sow inventory is projected to reach -1.62%, -2.50%, and -3.20% for October, November, and December 2025 respectively[1] Group 2: Oil Price Outlook - OPEC+ has a total remaining production capacity of 3.4 million barrels per day, with Saudi Arabia holding 2.13 million barrels per day, indicating limited short-term production increase capabilities[2] - The WTI oil price is expected to stabilize around $65 per barrel, with geopolitical risks potentially pushing this higher[2] - U.S. shale oil production is anticipated to face reduction pressures, with capital expenditures and rig counts declining, leading to a production bottleneck by the end of 2025[2] Group 3: CPI and PPI Projections - Under neutral conditions, CPI is projected to be around 0.5% for 2026, with pork prices averaging 19, 20, 21, and 22 CNY/kg across the quarters[3] - In a positive scenario, CPI could rise to approximately 0.7% due to stronger domestic demand and consumption policies[4] - PPI is expected to turn positive around Q3 2026, with a year-on-year growth rate of about 0.2% in Q3 and maintaining around 0.5% in Q4[4]

Core Viewpoint - The agricultural, forestry, animal husbandry, and fishery industry is currently undervalued with lower-than-historical price-to-earnings and price-to-book ratios, indicating potential for valuation recovery in the future [1] Market Performance - From the beginning of 2025 to November 25, the agricultural, forestry, animal husbandry, and fishery index achieved an absolute return of +24.66%, outperforming the CSI 300 index by 10.47 percentage points [2] - The wood processing sector showed the highest growth, while the aquatic processing sector lagged behind; in the first three quarters of 2025, net profits for the aquatic catch, animal health, and planting sectors increased by over 50% year-on-year [2] Industry Outlook 1. **Pig Farming**: The number of breeding sows is expected to decline in the second half of 2025, which may lead to a stabilization and recovery of pig prices by mid-2026 due to supply contraction amid stable demand. The pig farming sector remains undervalued historically, and leading companies are expected to benefit first as costs continue to optimize [3] 2. **Animal Health**: Short-term high production levels in poultry and livestock are driving demand for animal health products. As the industry enters an upward cycle, performance in the animal health sector is expected to be supported. The market for animal health products will expand with the introduction of non-epidemic vaccines, and long-term growth will be driven by the scaling up of the downstream poultry and livestock sectors [3] 3. **Seed Industry**: Recent regulatory developments and clearer policies for commercializing biological breeding indicate significant investment value in the seed sector, which is currently undervalued. 2024 is anticipated to be a pivotal year for biological breeding in China, with companies that have passed initial variety reviews likely to benefit from increased industry concentration and profitability [3] 4. **Pet Food**: The pet food industry in China is expected to grow significantly due to demographic changes and rising living standards. The market is witnessing a shift towards online sales and increased domestic product substitution, suggesting substantial growth potential for related listed companies [4] Investment Strategy - Recommended stocks for investment include Muyuan Foods (002714.SZ), Puli Co., Ltd. (603566.SH), Qiule Seed Industry (920087.BJ), Guibao Pet (301498.SZ), Zhongchong Co., Ltd. (002891.SZ), and Petty Co., Ltd. (300673.SZ) [4]

Group 1: Company Performance Highlights - Rilian Technology (688531.SH) achieved a revenue growth of 44.01% year-on-year, with a total revenue of 737 million CNY in the first three quarters of 2025[10] - Weisheng Information (688100.SH) reported a total revenue of 2.745 billion CNY in 2024, reflecting a year-on-year growth of 23.35%[14] - Foxit Software (688095.SH) recorded a revenue of 676 million CNY in the first three quarters of 2025, up 32.81% year-on-year[16] - Zhejiang Xiantong (603239.SH) maintained a strong position in the automotive sealing strip market, benefiting from the rising demand for high-end products[21] - Jin Yinhe (300619.SH) reported a significant increase in net profit by 220.37% year-on-year, reaching 12 million CNY in the third quarter of 2025[30] Group 2: Market Trends and Strategic Moves - Rilian Technology plans to acquire 66% of SSTI, enhancing its capabilities in semiconductor testing equipment[12] - Weisheng Information is expanding its international business, focusing on energy IoT projects in countries along the Belt and Road[15] - Foxit Software is transitioning to a subscription model, with subscription revenue growing by 68% year-on-year in the third quarter[18] - Zhejiang Xiantong is entering the robotics sector, aiming to diversify its business and enhance growth potential[24] - Jin Yinhe is expected to benefit from the lithium battery industry's growth, with projected revenues of 20.50 billion CNY in 2025[36]

Cost Management - The total cost of pig farming in October 2025 is approximately 11.3 CNY/kg, showing a decrease of nearly 0.3 CNY/kg from the previous month, primarily due to reduced period expenses and improved production metrics [4] - About one-third of the company's production lines have costs below 11 CNY/kg, indicating a feasible path to further cost reduction [5] - The company aims to replicate successful management practices across different production lines to minimize cost variance and enhance overall efficiency [5] Slaughtering and Meat Processing - The company slaughtered over 22 million pigs from January to October 2025, with an expected year-on-year doubling of slaughter volume [6] - The meat processing segment is experiencing increased customer loyalty and service capability, contributing to stable product pricing [6] - Future plans include expanding slaughter capacity, optimizing customer structure, and enhancing operational efficiency through digital management [6] Disease Prevention - A comprehensive disease prevention system has been established, including physical barriers and smart monitoring technologies to ensure pig health [7][8] - The company emphasizes standardized processes and staff training to enhance disease control measures [8] Market and Pricing Outlook - Government policies and market adjustments are improving the supply-demand situation in the pig market, promoting stable and reasonable pricing in the long term [9] - The company focuses on cost leadership to maintain positive cash flow during potential low-price periods, ensuring long-term operational stability [9] Piglet Sales and Costs - The cost of weaned piglets has decreased from approximately 270 CNY/head at the beginning of the year to around 230-240 CNY/head recently [10] - The company plans to innovate piglet sales strategies based on market demand and customer needs, aiming for stable supply and competitive pricing [11]

Core Insights - The article emphasizes the importance of financial support in fostering technological and industrial innovation in Henan, highlighting a tailored approach to financing that aligns with the specific needs of different stages of technology enterprises [1][2][5]. Financial Support for Technology Enterprises - Henan's banking sector has shifted from traditional collateral-based lending to a model that evaluates technology, industry, and future potential, providing comprehensive financial support throughout the lifecycle of technology companies [2][4]. - The case of Hengxing Technology illustrates how financial institutions have supported its transformation and growth through various credit products, with over 1 billion yuan in loans provided by the Export-Import Bank [3][4]. Innovative Financial Products - The banking industry in Henan has developed specialized financial products such as photovoltaic loans, clean energy project loans, and cold chain logistics loans to cater to the unique characteristics of technology enterprises [5][6]. - The introduction of these products aims to facilitate the growth of the technology and innovation sectors by ensuring that financial resources are effectively allocated [5]. Case Studies of Successful Financing - The establishment of Zhongke Qingneng, which focuses on liquid hydrogen technology, demonstrates the banks' willingness to support innovative startups despite their initial lack of profitability, with a loan of 10 million yuan provided by China Bank [3][4]. - The development of geothermal energy by Wanjing New Energy showcases the potential for innovative financing solutions in emerging sectors, with a loan of 88 million yuan structured to support their projects [6]. Strengthening the Financial Ecosystem - The article highlights the collaboration between financial institutions and technology enterprises, emphasizing the role of banks in enhancing the financing environment through policy alignment and innovative financial tools [8][9]. - The integration of digital technologies in banking services has improved the efficiency and accessibility of financing for enterprises, breaking down traditional barriers [7][9]. Comprehensive Support for the Agricultural Sector - The case of Muyuan Foods illustrates how banks have provided increasing credit support as the company expanded its operations, with loans growing from 300 million yuan in 2016 to 3 billion yuan in 2020 [8][9]. - The establishment of information-sharing mechanisms among stakeholders in the agricultural supply chain has enabled banks to better assess risks and tailor financing solutions [9].

Core Viewpoint - Muyuan Foods (牧原股份) has made progress in its application for overseas listing of H-shares on the Hong Kong Stock Exchange, receiving a registration notice from the China Securities Regulatory Commission (CSRC) [1] Group 1: Overseas Listing Progress - The company plans to issue no more than 546 million shares for overseas listing and has received a registration notice from the CSRC [1] - The registration notice confirms the company's overseas listing application but does not indicate any judgment on the investment value or returns for investors by the CSRC [1] - The company initiated its Hong Kong listing plan in early 2025 and submitted its application to the Hong Kong Stock Exchange on May 27 [1] Group 2: Financial Performance - For the period from January to September 2025, the company achieved a revenue of 111.79 billion yuan, representing a year-on-year growth of 15.52%, and a net profit attributable to shareholders of 14.779 billion yuan, up 41.01% [2] - In the third quarter, the company reported a revenue of 35.327 billion yuan and a net profit of 4.249 billion yuan [2] Group 3: Strategic Partnerships - In August, the company signed a strategic cooperation agreement with Charoen Pokphand Group to enhance collaboration in various sectors including feed, pig farming, slaughtering, and food processing [2] - In September, the company further deepened its business cooperation with BAF Vietnam Agricultural Joint Stock Company, planning to build and operate a high-tech breeding project in Vietnam [2]