Muyuan Foods (002714) Changjiang Securities·2024-08-09 01:31Investment Rating - The report maintains a Buy rating for Muyuan Foods (002714 SZ) [5] Core Views - Muyuan Foods achieved a revenue of 56 9 billion yuan in H1 2024 (yoy +10%) and a net profit attributable to shareholders of 829 million yuan, turning from a loss to a profit [1][3] - The company's cost advantage is significant, with further cost optimization expected in the future, and its slaughter scale is growing steadily [1][3] - The pig price trend is favorable, and the company's profitability is substantial, with its valuation currently at a historical low [1][3] - The company's headcount market value is approximately 3,502 yuan/head as of August 2, 2024, at the 5th percentile of historical levels [1][3] Financial Performance - In Q2 2024, Muyuan Foods achieved a revenue of 30 6 billion yuan (yoy +11%) and a net profit attributable to shareholders of 3 208 billion yuan, turning from a loss to a profit [1][3] - The company's pig slaughter volume in H1 2024 was 32 39 million heads (yoy +7%), with Q2 slaughter volume at 16 38 million heads, flat year-on-year [3][9] - The company's cost per kilogram of pork in Q2 2024 was 14 4 yuan/kg, with a profit per head of 203 yuan/head [3][10] - The company's total pig farming capacity is 80 48 million heads/year, sufficient to support the 2024 target slaughter volume of 66-72 million heads [4][13] Operational Highlights - The number of breeding sows increased from 3 13 million at the beginning of 2024 to 3 309 million by the end of June 2024 [4][13] - Fixed assets and construction in progress decreased slightly compared to the beginning of 2024, with fixed assets at 109 billion yuan and construction in progress at 2 1 billion yuan by the end of June 2024 [4][13] - Capital expenditures in H1 2024 decreased by 37% year-on-year, with Q2 capital expenditures at 1 188 billion yuan, the lowest since Q3 2018 [4][13] Debt and Cash Flow - The company's debt ratio decreased by 1 8 percentage points to 61 8% by the end of June 2024, with total liabilities decreasing by 6 6 billion yuan [4][14] - Short-term loans decreased by 7 6 billion yuan to 43 15 billion yuan, while long-term loans increased slightly by 680 million yuan to 11 123 billion yuan [4][14] - The company's net cash flow from operating activities in Q2 2024 was 10 4 billion yuan, the second-highest since its listing [4][14] - The company's debt repayment-loan cash flow in Q2 2024 reached 7 5 billion yuan, the highest quarterly level since its listing [4][14]