Core Viewpoint - Muyuan Foods Co., Ltd. has re-submitted its application for an IPO on the Hong Kong Stock Exchange after its initial submission expired, aiming for dual listing in both A-shares and H-shares [2][4]. Group 1: Company Overview - Muyuan Foods is the largest pig farming company in China and has maintained the top position globally in terms of pig production capacity and output since 2021, with a global market share of 5.6% as of 2024 [7]. - The company’s main business includes the entire pig farming industry chain, covering feed processing, breeding, and slaughtering, with the pig farming segment accounting for 98.7% of total revenue in the first half of 2025 [7]. Group 2: Financial Performance - The company's revenues for 2022, 2023, and 2024 were 124.83 billion CNY, 110.86 billion CNY, and 137.95 billion CNY, respectively, with a revenue of 76.46 billion CNY and a net profit of 10.79 billion CNY reported in the first half of 2025 [7]. - The gross profit margin improved from 7.7% in the first half of 2024 to 19.0% in the first half of 2025, primarily due to better margins in the pig farming business [7]. Group 3: Shareholding and Management - The direct controlling shareholder of Muyuan Foods is Muyuan Industrial Group Co., Ltd., holding a 15.54% stake, while the chairman, Qin Yinglin, directly holds 20.86 million shares [8]. - Qin Yinglin and his wife collectively own 54.91% of the company and were ranked 16th on the 2025 Hurun Rich List with a wealth of 187 billion CNY [10]. Group 4: Market Strategy and Future Plans - The IPO is a key step in the company's internationalization strategy, with plans to expand into emerging markets where per capita meat consumption is still low [10]. - The company intends to use the IPO proceeds to enhance its overseas market presence, strengthen R&D across the entire industry chain, and invest in breeding, smart farming, nutritional management, and biosecurity [10]. Group 5: Debt and Financial Risks - The company has shown significant changes in its debt structure, with net current liabilities reaching 15.59 billion CNY, 31.08 billion CNY, 24.16 billion CNY, and 16.64 billion CNY as of the end of 2022, 2023, 2024, and mid-2025, respectively [12]. - The company acknowledges the risk of liquidity issues due to its past net current liabilities and the potential for significant impairment losses on biological assets valued at 8.17 billion CNY and 30.22 billion CNY as of mid-2025 [12].

Core Viewpoint - Muyuan Foods Co., Ltd. has re-submitted its listing application to the Hong Kong Stock Exchange after the initial submission expired, aiming for a dual listing in both A-shares and H-shares [2][6]. Group 1: Company Overview - Muyuan Foods is the largest pig farming company in China and has maintained the top position globally in terms of pig production capacity and output since 2021, with a global market share of 5.6% as of 2024 [4][5]. - The company's main business includes the entire pig farming industry chain, covering feed processing, pig breeding, and slaughtering [4][5]. Group 2: Financial Performance - The company's revenues for 2022, 2023, and 2024 were 124.83 billion yuan, 110.86 billion yuan, and 137.95 billion yuan, respectively, with a revenue of 76.46 billion yuan and a net profit of 10.79 billion yuan reported for the first half of 2025 [5]. - The gross profit margin improved from 7.7% in the first half of 2024 to 19.0% in the first half of 2025, primarily due to better margins in the pig farming business [5]. Group 3: Strategic Initiatives - The IPO funds are intended for expanding overseas markets, enhancing technology research and development across the entire industry chain, and focusing on breeding, smart farming, nutritional management, and biosecurity [6]. - The company aims to leverage its leading position to capitalize on the growing meat consumption trends in developing countries, particularly in Southeast Asia [6]. Group 4: Debt and Asset Management - The company has shown significant changes in its debt structure, with net current liabilities reaching 15.59 billion yuan, 31.08 billion yuan, 24.16 billion yuan, and 16.64 billion yuan as of the end of 2022, 2023, 2024, and mid-2025, respectively [7]. - As of June 30, 2025, the company held biological assets valued at 8.17 billion yuan for productive assets and 30.22 billion yuan for consumable assets, which are subject to fluctuations due to market prices and other uncontrollable factors [7].

Investment Rating - The report maintains a "Strong Buy" investment rating for the company [1][7][3] Core Views - The company continues to lead in breeding costs, with significant cash flow improvements and a declining debt-to-asset ratio. The dividend payout ratio has notably increased, reflecting the company's value [1][7] - In the context of supply-side reforms and production capacity adjustments, the company is expected to benefit from its low-cost advantage, particularly in the face of industry challenges [7][1] - The company achieved a revenue of 76.5 billion yuan in the first half of 2025, representing a year-on-year increase of 34%, and a net profit of 10.5 billion yuan, up 1170% year-on-year [7][19] Financial Data and Valuation - The company’s total revenue is projected to be 110.861 billion yuan in 2023, with a growth rate of -11%, followed by a 24% increase in 2024 [19][20] - The estimated net profit for 2025 is 21.074 billion yuan, with a corresponding PE ratio of 13.0 [19][20] - The company’s cash flow from operating activities is expected to reach 38.235 billion yuan in 2025, indicating strong operational efficiency [18][20] Performance Metrics - The company’s breeding costs have significantly improved, with the estimated cost of live pigs dropping from 13.1 yuan/kg at the beginning of the year to 11.8 yuan/kg by July [7][19] - The company plans to distribute a cash dividend of 9.32 yuan per 10 shares, totaling 5 billion yuan, which represents 48% of its net profit [7][19] - The company’s return on equity (ROE) is projected to be 26.0% in 2025, reflecting strong profitability [20][19]

Group 1 - The company Jin Xin Nong (002548) reported a total pig sales volume of 112,200 heads in June 2025, including 52,300 commercial pigs, 57,800 piglets, and 2,100 breeding pigs [1] - The sales revenue from pig sales reached 122 million yuan, with an average selling price of 14.76 yuan per kilogram for commercial pigs [1] - For the first half of 2025, the total pig sales volume amounted to 632,300 heads, representing a year-on-year increase of 5.57%, while the total sales revenue was 763 million yuan, showing a year-on-year decline of 1.23% [1]

Group 1 - The company Jin Xin Nong (002548) reported a total pig sales volume of 81,100 heads in May 2025, which includes 54,400 commercial pigs, 26,500 piglets, and 200 breeding pigs [1] - The sales revenue for the month reached 112 million yuan, with an average selling price of 14.92 yuan per kilogram for commercial pigs [1]

Core Viewpoint - The company is continuously improving its pig farming operations, leading to a decrease in breeding costs, while the slaughtering business has significantly increased its capacity utilization and profitability, driving high-quality development [1]. Investment Highlights - The investment recommendation is to maintain a "Buy" rating with a target price of 50.8 yuan. The projected EPS for 2025-2027 is 2.54, 4.81, and 6.77 yuan respectively. The company's pig output continues to grow, and the profitability of the slaughtering business is improving. Compared to peers, the company remains a leader in the industry, combining growth and value attributes, with a 20x valuation for 2025 corresponding to the target price of 50.8 yuan [2]. - In Q1 2025, the company achieved revenue of 36.06 billion yuan, a year-on-year increase of 37.26%. The net profit attributable to shareholders was 4.49 billion yuan, marking a turnaround from losses. The net cash flow from operating activities was 7.51 billion yuan, up 48.1% year-on-year [2]. - The company reported a pig output of 22.658 million heads in Q1 2025, a year-on-year increase of 41.5%, with 18.395 million commodity pigs, 4.149 million piglets, and 113,000 breeding pigs [2]. Cost Management - The complete cost of pig farming in March 2025 has decreased to 12.5 yuan/kg, showing continuous optimization. The company is expected to enhance production indicators through health management and breeding improvements, while promoting excellent farm management practices to further reduce breeding costs [2]. Slaughtering Business Performance - The company slaughtered 5.32 million pigs in Q1 2025, a year-on-year increase of 81%. The slaughtering capacity utilization rate improved significantly from 40% in Q1 2024 to 73% in Q1 2025. The company plans to further expand the market, strengthen channel construction, and optimize customer and product structures to enhance profitability [3].