Important Changes in Q1 2026
- Shift to Net Loss: Impacted by the sustained downward trend in hog market prices, the company reported a net loss attributable to shareholders of 1.215B RMB, marking a reversal from profitability in the same period last year.
- Asset Impairment: During the reporting period, the company recognized inventory write-downs of approximately 0.322B RMB, further weighing on profitability.
- Capital Structure Adjustment: Following the completion of the H-share offering in February 2026, shareholder equity and capital reserves were significantly bolstered. The debt-to-asset ratio decreased by approximately 3.42 percentage points compared to year-end 2025, optimizing the company’s financial structure.
- Growth in Slaughtering Business: Despite pressures on the farming segment, the slaughtering and meat processing business performed strongly, achieving profitability in each month from January to April, and has become a new growth highlight for the company.
Outlook for Next Quarter
- Continued Cost Reduction: In recent investor communications, the company stated that the fully loaded production cost of hogs had dropped to 11.6 RMB/kg by March. With production metrics continuing to improve, management expects a further decline in farming costs in the second quarter.
- Capacity Regulation: The company continues to adjust its breeding sow inventory (approximately 3.129M head at the end of Q1) and expects total annual commercial hog output for 2026 to remain between 75M and 81M head, maintaining a stable production scale.
EPS Forecast for the Upcoming Year (2026)
Based on integrated market analysis and analyst consensus, sentiment regarding 2026 EPS is conservative due to downward pressure from the industry cycle and declining profitability. The primary forecast ranges are as follows:
- Market Consensus: Forecasts range between 1.16 RMB and 2.11 RMB (with various institutions adjusting estimates downwards based on the latest market scenario).
- Brokerage Views: Institutions such as Industrial Securities maintain a relatively optimistic stance, projecting 2026 EPS at approximately 1.25 RMB, while expressing confidence in the company’s resilience during the industry downturn and the synergies across its entire industrial chain.
Note: The information above is synthesized from company filings and market research reports. Figures are subject to change based on market conditions and subsequent corporate operational adjustments.
Source:
- https://m.caijing.com.cn/article/202604/414304
- https://www.moomoo.com/hans/news/notice/306991789/muyuan-2026-first-quarterly-report
- https://www.stcn.com/article/detail/3772498.html
- https://www.sznews.com/news/content/2026-04/28/content_32031597.htm
- https://www.fxbaogao.com/detail/5366930
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