Muyuan Foods Co.,Ltd. (02714) saw its shares drop more than 4% during the morning session, hitting a new low of HK$34.82 since its listing. As of the latest update, the stock was down 4.34% at HK$34.84, with a trading volume of HK$78.36 million.
Data from the National Bureau of Statistics shows that as of the end of April, the national average selling price for commercial hogs was RMB 9.80 per kilogram. This represents an 8.9% increase month-on-month but a 34.2% decrease year-on-year. According to data from Yongyi Consulting, as of May 5th, the selling price for weaned piglets was RMB 246 per head, up 3.8% from the previous month but down 53.9% compared to the same period last year.
Furthermore, monitoring data from Yongyi Consulting for the first week of May indicates that profits from selling commercial hogs for self-breeding and self-raising enterprises stood at a loss of RMB 306.66 per head. This marks the 12th consecutive week of losses. The profit per head from selling piglets was also in the red at a loss of RMB 34, continuing a seven-week streak of losses.
Muyuan Foods' first-quarter financial report revealed revenue of RMB 29.894 billion, a year-on-year decrease of 17.10%. The net profit attributable to shareholders was a loss of RMB 1.215 billion, shifting from profit to loss compared to the same period last year. Facing a deep industry adjustment cycle, the company continues to optimize its financial structure and enhance operational stability.
Huatai Securities maintains that the company demonstrates strong operational resilience. With an anticipated recovery in hog prices by 2027, the company's profitability advantages are expected to translate into robust earnings performance, supporting the maintenance of a "Buy" rating.
Comments