Muyuan Foods (002714) 新浪财经·2025-04-25 10:42Core Viewpoint - The company reported a significant turnaround in its financial performance for Q1 2025, with substantial increases in revenue and profit, driven by higher sales volumes and improved production efficiency [1][2][3]. Financial Performance - In Q1 2025, the company achieved a revenue of 36.061 billion yuan, a year-on-year increase of 37.26% [1] - The net profit attributable to shareholders was 4.491 billion yuan, with a net profit excluding non-recurring items of 4.509 billion yuan, marking a substantial recovery from losses [1] - Basic earnings per share were 0.83 yuan, aligning with previous expectations [1] Sales and Production Metrics - The company sold 22.658 million pigs in Q1 2025, a year-on-year increase of 41.52% [1] - Sales of piglets surged by 595% year-on-year, with a sales proportion of 18.3%, up from 3.7% in the previous year [1] - Average selling prices for commodity pigs in January and February were 14.76 yuan/kg and 14.30 yuan/kg, reflecting increases of 6.7% and 0.4% year-on-year, respectively [1] Cost and Efficiency Improvements - The total cost of pig farming decreased to 12.5 yuan/kg by March 2025, attributed to improved production metrics [2] - The company’s survival rate is approximately 82%, with a daily weight gain of 810g for fattening pigs [2] - The company aims to further reduce costs to 12 yuan/kg by the end of 2025 through enhancements in health management, breeding, and nutrition [2] Capacity and Output Growth - As of the end of Q1 2025, the company had 3.485 million breeding sows, a year-on-year increase of 10.9% [2] - The company expects to produce 72-78 million commodity pigs in 2025, a year-on-year increase of 10%-19% [2] - The expected output of piglets is between 8-12 million, representing a year-on-year increase of 41%-112% [2] Slaughtering and Internal Management - The company slaughtered 5.32 million pigs in Q1 2025, an increase of 81% year-on-year [3] - The utilization rate of slaughtering capacity improved from 40% in Q1 2024 to 73% in Q1 2025 [3] - Despite improvements, the slaughtering segment is still expected to incur slight losses due to low product mix and underutilized facilities [3] Investment Analysis - The company is positioned as a leading player in the pig farming industry with low costs and substantial scale [4] - Revenue projections for 2025-2027 are 135.496 billion yuan, 141.859 billion yuan, and 147.312 billion yuan, with corresponding net profits of 20.829 billion yuan, 23.471 billion yuan, and 26.401 billion yuan [4] - The company maintains a "buy" rating with projected P/E ratios of 11X, 9X, and 8X for the respective years [4]