Core Viewpoint - The credit rating of Muyuan Foods Co., Ltd. remains stable at AA+ due to its strong position in the pig farming industry, improved profitability, and efficient management, despite potential risks from price fluctuations and debt structure [4][10][17]. Group 1: Company Overview - Muyuan Foods is a leading player in the pig farming industry, with a complete pork supply chain including feed processing, breeding, and slaughtering [10][13]. - The company has a pig farming capacity of 81 million heads per year, ranking first in the industry, and a slaughtering capacity of 29 million heads per year [13][14]. - The company has maintained a stable ownership structure, with major shareholders holding over 50% of the voting rights [11][12]. Group 2: Financial Performance - In 2024, the company achieved a net profit of 18.93 billion yuan, significantly improving from previous years [20][21]. - The average cost of pig farming decreased to 14.01 yuan per kilogram in 2024, with a target of 12 yuan per kilogram by 2025 [15][16]. - The company's total assets reached 195.41 billion yuan, with total liabilities at 121.37 billion yuan, indicating a healthy balance sheet [20][21]. Group 3: Market Position and Strategy - The company benefits from a strong procurement cost advantage and improved internal management efficiency, leading to lower farming costs [6][10]. - Muyuan Foods plans to issue H-shares and list on the Hong Kong Stock Exchange to enhance its international presence [8][12]. - The company is focused on expanding its overseas business and improving its debt structure, with a goal to reduce debt by 10 billion yuan in 2025 [16][17]. Group 4: Risks and Challenges - The company faces significant risks from fluctuations in pig prices and feed costs, which can impact profitability [4][10][17]. - Short-term debt levels are rising, indicating a need for optimization in the debt structure [8][17]. - The company must continuously monitor and manage risks related to disease outbreaks and environmental regulations [10][12].