Muyuan Foods (SZ:002714) Orient Securities·2024-08-16 00:06Investment Rating - The report maintains a "Buy" rating for the company with a target price of 57.38 CNY based on a 19x PE for 2024 [2][4][6]. Core Insights - The company reported a revenue of 56.87 billion CNY for the first half of 2024, a year-on-year increase of 9.6%, and a net profit attributable to shareholders of 0.83 billion CNY, up 129.8%, marking a turnaround from losses [1][2]. - The sales volume of live pigs increased steadily, with a total of 32.39 million pigs sold in the first half of 2024, a 7% increase year-on-year. The company has effectively controlled breeding costs through self-built feed factories and proprietary nutritional formulas [1][2]. - The slaughtering business remains stable, with 5.415 million pigs slaughtered in the first half of 2024, achieving a 4.5% increase in pork sales [1][2]. - Short-term benefits are expected from rising pig prices, while long-term advantages will stem from refined management practices [1][2]. Financial Summary - The company's revenue for 2024 is projected at 135.94 billion CNY, with a net profit of 16.48 billion CNY, reflecting a significant recovery from a net loss of 4.26 billion CNY in 2023 [3][6]. - The gross margin is expected to improve to 20.1% in 2024, up from 3.1% in 2023, indicating a strong recovery in profitability [3][6]. - The net profit margin is projected to be 12.1% in 2024, compared to -3.8% in 2023, showcasing a significant turnaround in financial performance [3][6].