--- title: "The strongest domestic pig company, with a net profit of over 10 billion in the first half of the year." type: "Topics" locale: "zh-CN" url: "https://longbridge.com/zh-CN/topics/31743589.md" description: "In the first half of this year, Muyuan Foods, the "top player" in the pig farming industry, delivered an almost perfect performance report. After the market closed on July 9, Muyuan Foods disclosed its semi-annual performance forecast, showing that the company is expected to achieve a net profit of 10.5 billion to 11 billion yuan in the first half of the year, an increase of 924.60% to 973.39% compared to 1.025 billion yuan in the same period last year. The net profit attributable to the parent company is expected to be 10.2 billion to 10.7 billion yuan, a year-on-year increase of 1129.97% to 1190.26%. Based on the minimum net profit attributable to the parent company of 10.2 billion yuan, Muyuan Foods' net profit attributable to the parent company in the second quarter was approximately 5.7 billion yuan..." datetime: "2025-07-13T02:46:36.000Z" locales: - [en](https://longbridge.com/en/topics/31743589.md) - [zh-CN](https://longbridge.com/zh-CN/topics/31743589.md) - [zh-HK](https://longbridge.com/zh-HK/topics/31743589.md) author: "[侃见财经](https://longbridge.com/zh-CN/profiles/3206955.md)" --- > 支持的语言: [English](https://longbridge.com/en/topics/31743589.md) | [繁體中文](https://longbridge.com/zh-HK/topics/31743589.md) # The strongest domestic pig company, with a net profit of over 10 billion in the first half of the year. In the first half of this year, the "top player" in the pig farming industry, Muyuan Foods, delivered a nearly perfect performance report. After the market closed on July 9, Muyuan Foods disclosed its semi-annual performance forecast, showing that the company is expected to achieve a net profit of 10.5 billion to 11 billion yuan in the first half of the year, a year-on-year increase of 924.60% to 973.39% compared to 1.025 billion yuan in the same period last year. The net profit attributable to shareholders is expected to be 10.2 billion to 10.7 billion yuan, a year-on-year increase of 1129.97% to 1190.26%.   Calculated based on the minimum net profit attributable to shareholders of 10.2 billion yuan, Muyuan Foods' net profit attributable to shareholders in the second quarter was approximately 5.7 billion yuan, about 1.2 billion yuan higher than the 4.491 billion yuan in the first quarter. Of course, the high growth in Muyuan Foods' performance is partly due to the cyclical nature of the industry and the low base of previous performance. Overall, Muyuan Foods' revenue has reached a historical high, and this performance forecast highlights its strong profitability. It is worth noting that despite its impressive performance, the capital market's reaction has been lukewarm. After the performance disclosure, Muyuan Foods' stock price opened high but closed with only a slight increase of 0.47%, slightly below expectations. For the year, Muyuan Foods' stock price has risen by more than 20%, outperforming the market average. However, over a longer period, the stock price is still down by about half from its peak, with its market value shrinking by over 200 billion yuan. Affected by the stock price, **the wealth of Muyuan Foods' founder Qin Yinglin and his wife was once surpassed by Wang Ning, the founder of Pop Mart, and Qin Yinglin lost his position as the richest person in Henan to Wang Ning. According to the Hurun Global Rich List 2025, Qin Yinglin and Qian Ying ranked 118th globally with a net worth of 130 billion yuan, down 26 places year-on-year.**   To "break the deadlock," improve corporate valuation, and globalize, Muyuan Foods has announced plans for a Hong Kong IPO. **Muyuan Foods stated, "The global pig farming industry remains highly fragmented, with the top five pig farming companies accounting for only 11.8% of global sales in 2024. Through our advanced equipment and technology, we aim to empower the global pig farming industry and build a global pig farming ecosystem."** **A Business Taken to the "Extreme"** From the performance data, this undoubtedly demonstrates Muyuan Foods' exceptional profitability. Additionally, it reveals that Muyuan Foods has taken the pig farming business to the "extreme." Muyuan Foods was one of the earliest pig farming companies in China to adopt the self-breeding and self-raising model. Compared to the traditional "company + farmer" model, the self-breeding and self-raising model is much more challenging. Especially for the core fattening process, the self-breeding and self-raising model requires the company to handle fattening itself, without cooperating with farmers or outsourcing. This "hands-on" business model demands significant fixed asset investments in land and pigsty construction. It should be noted that Muyuan Foods has gone through this process. Before its IPO in 2013, Muyuan Foods' total fixed assets were 1.296 billion yuan, with 313 million yuan in construction in progress, totaling 1.609 billion yuan. By 2016, its total fixed assets reached 6.5 billion yuan, with 851 million yuan in construction in progress, totaling 7.351 billion yuan. In just three years, Muyuan Foods' "fixed assets + construction in progress" quadrupled.   To rapidly expand its fixed assets, Muyuan Foods paid a significant price, especially in terms of debt. In 2013, Muyuan Foods' total liabilities were 1.978 billion yuan, including 1.363 billion yuan in current liabilities. By 2016, its total liabilities had climbed to 7.27 billion yuan, with current liabilities reaching 5.194 billion yuan, representing increases of 3.68 times and 3.8 times, respectively, compared to 2013. The rapid rise in debt strained Muyuan Foods' cash flow. For example, in 2016, with only 984 million yuan in cash, its short-term loans alone amounted to 2.5 billion yuan. However, after years of development, as its scale gradually took shape, the advantages of the self-breeding and self-raising model began to emerge, most notably in solving the "diseconomies of scale" problem. The pig farming industry differs significantly from traditional industries. The facilities required for a sow's pregnancy and farrowing, as well as the space needed for a pig's growth, are fixed and do not change with scale. Moreover, animals are living organisms, and the risk of disease increases exponentially with higher density, requiring more resources and effort to establish and maintain strict biosecurity systems. Additionally, as the scale of farming increases, the difficulty of personnel management also grows, leading to "diseconomies of scale." However, Muyuan Foods successfully addressed this issue through its integrated and refined management. In terms of farming costs, Qin Jun, Muyuan Foods' board secretary and chief strategy officer, stated at a pig farming festival communication meeting: "Muyuan Foods' total farming cost in May was 12.2 yuan/kg. The target for the full year of 2025 is an average cost of 12 yuan/kg, equivalent to achieving 11 yuan/kg by year-end. Reaching 10 yuan/kg is not far off." Over a longer period, Muyuan Foods' average total pig farming cost in 2023 was 15.0 yuan/kg, down from 15.7 yuan/kg in 2022, and had dropped to 13 yuan/kg by the end of 2024. For the full year of 2024, its total pig farming cost was approximately 14 yuan/kg. In terms of scale, Muyuan Foods sold a total of 71.602 million pigs in 2024, including 65.477 million commercial pigs, 5.659 million piglets, and 465,000 breeding pigs. For 2025, Muyuan Foods expects to sell 72 million to 78 million commercial pigs, 8 million to 12 million piglets, and a total of 80 million to 90 million pigs. As of June this year, Muyuan Foods' cumulative pig sales reached 38.39 million. **Urgently Seeking a "New Story"** For Muyuan Foods, taking the pig farming business to the "extreme" is a double-edged sword. The advantage is that Muyuan Foods has built a strong moat through cost and scale advantages, now ranking as the top player in the industry. However, the downside is also evident. After reaching the top, Muyuan Foods has limited room for further growth. In terms of farming costs, even compared to the ultimate target of 10 yuan/kg, the current 12.2 yuan/kg leaves little room for further cost reduction. Moreover, as costs are continuously squeezed, future reductions will become more challenging, and their impact on performance will diminish. More importantly, after becoming the industry leader, Muyuan Foods' expansion has significantly slowed, shifting its strategy from "expansion and market capture" to "debt reduction and meticulous management." Statistics show that from 2022 to 2024, Muyuan Foods had net current liabilities of 15.5888 billion yuan, 31.0762 billion yuan, and 24.1579 billion yuan, mainly consisting of short-term loans and accounts payable. Notably, net current liabilities in 2024 declined significantly. At a previous quarterly report briefing, Muyuan Foods' management stated: "The company's debt level remains relatively high. While optimizing the capital structure, we aim to reduce not only the debt ratio but also the absolute level of debt (reducing debt by 10 billion yuan by the end of 2025 compared to 2024). We believe this target is fully achievable."   Based on the above analysis, if the status quo is maintained, Muyuan Foods can sustain its leading position, but its growth potential is limited, which is particularly unfavorable for valuation improvement. As previously mentioned, despite delivering a strong performance forecast, the capital market's response has been muted. In terms of stock performance, although Muyuan Foods' performance has continued to recover over the past year, its stock price remains sluggish. As of the latest close, Muyuan Foods' stock price was 45.69 yuan per share, still down by nearly half from its 2021 peak, with its market value shrinking by over 200 billion yuan. Of course, Muyuan Foods is aware of this and filed for a Hong Kong IPO in late May to expand overseas markets. However, expanding overseas is not easy, as Muyuan Foods lacks significant advantages in international markets compared to other pig farming companies. Data shows that several pig farming companies have already gone global in recent years. For example, New Hope Liuhe has established a complete industrial system in Vietnam, including nine feed companies, three farming companies, and one breeding company. In 2024, its overseas revenue exceeded 20 billion yuan for the second consecutive year, accounting for 19.44% of total revenue. Similarly, Haid Group's overseas feed sales reached 2.36 million tons in 2024, a 40% year-on-year increase.$MUYUAN(002714.SZ) ### 相关股票 - [MUYUAN (002714.CN)](https://longbridge.com/zh-CN/quote/002714.CN.md)