Muyuan Foods Co Ltd Class A

002714: XSHE (CHN)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	¥36.00	Gjdh	Ktbmnhlf

Muyuan Earnings: Disappointment Following Weak Hog Prices; Valuation Retained

Jacky Tsang

Oct 31, 2023

No-moat Muyuan Foods’ third-quarter earnings fell short on softer hog prices and lower sales volumes. We trim our sales and net income estimates for 2023 to reflect continued margin pressure but still expect the company to slightly exceed its production target of 65 million heads. We think the soft 2023 earnings have been priced in by investors with the current share price trading at a discount to 10-year average price/earnings of 16 times and below our base-case fair valuation.

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