Muyuan Foods Co., Ltd. (002714.SZ) has passed the listing hearing on the main board of the Hong Kong Stock Exchange, with Morgan Stanley, CITIC Securities, and Goldman Sachs serving as joint sponsors. The company has reportedly commenced gauging investor interest for its Hong Kong IPO, targeting a listing as early as February. The IPO fundraising scale could potentially reach $1.5 billion, although discussions are ongoing and the timing and size of the deal remain subject to change. According to its prospectus, Muyuan Foods is a leader in the pig farming industry, operating a vertically integrated business model that spans the entire industrial chain, including pig breeding, hog farming, feed production, and slaughtering. Data from Frost & Sullivan indicates that, since 2021, measured by hog production capacity and slaughter volume, the company has been the world's largest pig farming enterprise, ranking first globally in slaughter volume for four consecutive years. Its global market share by slaughter volume increased from 2.6% in 2021 to 5.6% in 2024, surpassing the combined market share of the second to fourth largest participants in 2024. Muyuan Foods is the only one among the world's top ten listed pork food companies that maintained an average annual net profit margin above 15.0% from 2014 to 2024. From 2014 to 2024, the company's EBITDA (under non-China GAAP) achieved a compound annual growth rate of 60.2%, with an average EBITDA (under non-China GAAP) margin of 30.8%, outperforming other large listed companies in China's pig farming sector. On the evening of January 15, Muyuan Foods disclosed its 2025 performance forecast, estimating a net profit attributable to shareholders of 14.7 billion to 15.7 billion yuan, a year-on-year decrease of 12.2% to 17.79%. Adjusted net profit is projected to be between 15.1 billion and 16.1 billion yuan, down 14.12% to 19.45% year-on-year.
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