"Pig Ma" Muyuan Foods: Can the dual wings of intelligentization and overseas expansion break the growth dilemma?

The global pig farming industry is undergoing profound changes, with the wave of smart technology sweeping through traditional sectors. As a leading company in the industry, Muyuan Foods Chairman Qin Yinglin recently announced plans to build a large-scale pig farming model using artificial intelligence technology to promote modernization and standardization in the industry. This strategic transformation marks China’s pig industry officially entering a new, technology-driven phase.

In terms of capital market deployment, this industry leader has completed the construction of both “A+H” dual listings. Before the Chinese New Year in 2026, Muyuan officially listed on the Hong Kong Stock Exchange, with an offering price set at the upper limit of HKD 39, and the international offering was oversubscribed by 8.62 times. More than ten well-known institutions, including Chia Tai Group and Fidelity Funds, became cornerstone investors, accounting for half of the global offering shares. Although the stock price remained stable initially after listing, it reached a new high of HKD 45.26 by early March.

Internationalization has become a new engine for the company’s development. According to the prospectus, 60% of the raised funds will be used for overseas expansion, with 30% dedicated to strengthening the global supply chain system. The company plans to establish industrial centers in Southeast Asian markets such as Vietnam and Thailand, forming a team of over 200 experts covering breeding technology, supply chain management, environmental protection equipment, and more. To support overseas expansion, the company has launched an international management trainee program for Vietnamese graduates, offering annual salaries of 300,000 to 500,000 yuan to recruit professionals.

Substantial progress has been made in business expansion. In September 2024, the company reached a strategic partnership with Vietnam BAF Agriculture, providing full-chain technical services from pig farm design to intelligent breeding. In March 2025, its wholly owned subsidiary in Vietnam was officially established, marking a new stage of localized operations. In August of the same year, the company signed a strategic cooperation agreement with Chia Tai Group in Bangkok, leveraging its deep roots in Southeast Asia to accelerate market penetration. The company also targets over 2,000 breeding enterprises in Vietnam, the Philippines, Brazil, and other regions, planning to expand capacity through acquisitions and other methods.

Operational pressures are prompting the company to seek breakthroughs. The earnings forecast indicates that net profit in 2025 is expected to decline by 14.93% to 20.21% year-on-year, mainly due to a 17.3% drop in pig prices. Despite cost control measures reducing breeding costs to 12 yuan per kilogram—down 2 yuan year-on-year—market volatility remains difficult to fully hedge against. Data shows that in the first two months of 2026, the average selling price of commercial pigs fell by 16.92% year-on-year to 18.72 yuan, with sales revenue experiencing double-digit declines.

Industry structural contradictions remain prominent. China’s pig farming industry has long been dominated by small-scale farmers, with the top five companies holding less than 20% of the market share in 2024. This pattern leads to unstable supply and recurring “pig cycle” phenomena. Meanwhile, consumer protein consumption patterns are changing, with per capita pork consumption declining for two consecutive years, dropping to 26.6 kilograms in 2025. These factors combined make 2026 a challenging year for breeding enterprises.

Building technological barriers creates a competitive advantage. Compared to the “company + farmers” model, Muyuan’s “self-breeding and self-rearing” system excels in cost control and disease prevention. Through intelligent upgrades, traditional farms have been transformed into Industry 4.0 standards, achieving industry-leading levels in feed conversion rates and annual piglet production per sow. This technological edge will be a key support for expanding into overseas markets.