Muyuan Foods (SZSE:002714) - Share price, News & Analysis

Q: What is the Fair Price of 2714 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

002714 (CN¥55.27) is trading above our estimate of [[fair value]] (CN¥25.04)

2714 fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	6/6
Past Performance	0/6
Financial Health	1/6
Dividends	0/6

2714 Stock Overview

Muyuan Foods Co., Ltd., together with its subsidiaries, operates in the hog industry in China.

Rewards

Earnings are forecast to grow 80.12% per year

Risk Analysis

Debt is not well covered by operating cash flow

Muyuan Foods Competitors

Inner Mongolia Yili Industrial Group

SHSE:600887

CN¥249.3b

Foshan Haitian Flavouring and Food

SHSE:603288

CN¥418.7b

Yihai Kerry Arawana Holdings

SZSE:300999

CN¥288.5b

Guangdong Haid Group

SZSE:002311

CN¥99.7b

Price History & Performance

Summary of all time highs, changes and price drops for Muyuan Foods
Historical stock prices
Current Share Price	CN¥55.27
52 Week High	CN¥62.68
52 Week Low	CN¥39.01
Beta	0.87
1 Month Change	7.99%
3 Month Change	-3.74%
1 Year Change	-7.58%
3 Year Change	123.07%
5 Year Change	740.83%
Change since IPO	2,632.57%

Shareholder Returns

	2714	CN Food	CN Market
7D	-3.5%	2.5%	3.2%
1Y	-7.6%	-11.7%	-10.1%

Return vs Industry: 002714 exceeded the CN Food industry which returned -11.7% over the past year.

Return vs Market: 002714 exceeded the CN Market which returned -10.1% over the past year.

Price Volatility

Is 2714's price volatile compared to industry and market?
2714 volatility
2714 Average Weekly Movement	5.5%
Food Industry Average Movement	7.2%
Market Average Movement	7.2%
10% most volatile stocks in CN Market	10.1%
10% least volatile stocks in CN Market	5.1%

Stable Share Price: 002714 is less volatile than 75% of CN stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 002714's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1992	137,520	Ying Lin Qin	https://www.muyuanfoods.com

Muyuan Foods Co., Ltd., together with its subsidiaries, operates in the hog industry in China. It provides feed processing, pig breeding, breeding pig breeding, commercial pig breeding, and pig slaughtering services. The company was founded in 1992 and is headquartered in Nanyang, China.

Muyuan Foods Fundamentals Summary

How do Muyuan Foods's earnings and revenue compare to its market cap?
2714 fundamental statistics
Market Cap	CN¥294.15b
Earnings (TTM)	-CN¥5.24b
Revenue (TTM)	CN¥77.02b

3.8x

P/S Ratio

-56.1x

P/E Ratio

Is 2714 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
2714 income statement (TTM)
Revenue	CN¥77.02b
Cost of Revenue	CN¥77.26b
Gross Profit	-CN¥245.87m
Other Expenses	CN¥4.99b
Earnings	-CN¥5.24b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-0.98
Gross Margin	-0.32%
Net Profit Margin	-6.80%
Debt/Equity Ratio	110.1%

How did 2714 perform over the long term?

See historical performance and comparison

Dividends

0.4%

Current Dividend Yield

-26%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 2714 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 2714?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 2714. This is calculated by dividing 2714's market cap by their current preferred multiple.
What is 2714's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	CN¥294.15b

2714 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	4.8x
Enterprise Value/EBITDA	70.9x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does 2714's PS Ratio compare to its peers?

2714 PS Ratio vs Peers

The above table shows the PS ratio for 2714 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	5.3x
600887 Inner Mongolia Yili Industrial Group	2.2x	10.8%	CN¥249.3b
603288 Foshan Haitian Flavouring and Food	16.7x	13.7%	CN¥418.7b
300999 Yihai Kerry Arawana Holdings	1.3x	10.0%	CN¥288.5b
002311 Guangdong Haid Group	1.1x	18.4%	CN¥99.7b
002714 Muyuan Foods	3.8x	24.4%	CN¥292.0b

Forward PS

Price-To-Sales vs Peers: 002714 is good value based on its Price-To-Sales Ratio (3.8x) compared to the peer average (5.1x).

Price to Earnings Ratio vs Industry

How does 2714's PE Ratio compare vs other companies in the CN Food Industry?

Price-To-Sales vs Industry: 002714 is expensive based on its Price-To-Sales Ratio (3.8x) compared to the CN Food industry average (2.7x)

Price to Sales Ratio vs Fair Ratio

What is 2714's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

2714 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	3.8x
Fair PS Ratio	2.5x

Price-To-Sales vs Fair Ratio: 002714 is expensive based on its Price-To-Sales Ratio (3.8x) compared to the estimated Fair Price-To-Sales Ratio (2.5x).

Share Price vs Fair Value

What is the Fair Price of 2714 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 002714 (CN¥55.27) is trading above our estimate of fair value (CN¥25.04)

Significantly Below Fair Value: 002714 is trading above our estimate of fair value.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 002714's PEG Ratio to determine if it is good value.

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Future Growth

How is Muyuan Foods forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

Future Growth Score

6/6

Future Growth Score 6/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

80.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 002714 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (3.2%).

Earnings vs Market: 002714 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: 002714 is expected to become profitable in the next 3 years.

Revenue vs Market: 002714's revenue (24.4% per year) is forecast to grow faster than the CN market (17.5% per year).

High Growth Revenue: 002714's revenue (24.4% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 002714's Return on Equity is forecast to be high in 3 years time (35.1%)

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Past Performance

How has Muyuan Foods performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

41.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 002714 is currently unprofitable.

Growing Profit Margin: 002714 is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: 002714 is unprofitable, but has reduced losses over the past 5 years at a rate of 41.3% per year.

Accelerating Growth: Unable to compare 002714's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 002714 is unprofitable, making it difficult to compare its past year earnings growth to the Food industry (-5.9%).

Return on Equity

High ROE: 002714 has a negative Return on Equity (-9.63%), as it is currently unprofitable.

Discover strong past performing companies

Financial Health

How is Muyuan Foods's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 002714's short term assets (CN¥54.4B) do not cover its short term liabilities (CN¥90.9B).

Long Term Liabilities: 002714's short term assets (CN¥54.4B) exceed its long term liabilities (CN¥29.1B).

Debt to Equity History and Analysis

Debt Level: 002714's net debt to equity ratio (84.9%) is considered high.

Reducing Debt: 002714's debt to equity ratio has increased from 99.9% to 110.1% over the past 5 years.

Debt Coverage: 002714's debt is not well covered by operating cash flow (16.3%).

Interest Coverage: Insufficient data to determine if 002714's interest payments on its debt are well covered by EBIT.

Balance Sheet

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Dividend

What is Muyuan Foods's current dividend yield, its reliability and sustainability?

Dividend Score

1/6

Dividend Score 1/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

0.45%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 002714's dividend (0.45%) isn’t notable compared to the bottom 25% of dividend payers in the CN market (0.48%).

High Dividend: 002714's dividend (0.45%) is low compared to the top 25% of dividend payers in the CN market (1.94%).

Stability and Growth of Payments

Stable Dividend: 002714 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 002714's dividend payments have increased, but the company has only paid a dividend for 8 years.

Earnings Payout to Shareholders

Earnings Coverage: 002714 is paying a dividend but the company is unprofitable.

Cash Payout to Shareholders

Cash Flow Coverage: 002714 is paying a dividend but the company has no free cash flows.

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Management

How experienced are the management team and are they aligned to shareholders interests?

9.5yrs

Average board tenure

CEO

Ying Lin Qin (56 yo)

no data

Tenure

CN¥481,800

Compensation

Mr. Qin Yinglin serves as Chairman of the Board of Directors and General Manager of Muyuan Foods Co., Ltd.

Board Members

Experienced Board: 002714's board of directors are considered experienced (9.5 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/30 00:00
End of Day Share Price	2022/06/30 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31