Strategic Analysis of Muyuan Foods' A+H Dual Listing

Based on the above search results and real-time data, I provide you with a professional analysis report on the strategic considerations of Muyuan Foods’ Hong Kong listing.

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Muyuan Foods Co., Ltd. (002714.SZ), the world’s largest pig breeding enterprise, accounts for 5.4% of the global pig breeding market and occupies a pivotal position in the Chinese and global breeding industries. Since its listing on the Shenzhen Stock Exchange in 2014, the company has grown into an industry leader with a market capitalization of approximately RMB 263.2 billion (as of January 16, 2026) [0][1].

Currently, the company has submitted a listing application to the Hong Kong Stock Exchange, proposing to issue no more than 550 million overseas listed ordinary shares, with a targeted fundraising scale of US$1.0-1.5 billion (approximately HK$7.8-11.7 billion). The sponsorship team includes international top investment banks such as Morgan Stanley, CITIC Securities and Goldman Sachs [1][3].

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The primary strategic intention of Muyuan Foods’ Hong Kong listing is to

. The company plans to use the IPO proceeds to cooperate with BAF Vietnam Agriculture Co., Ltd. to build a high-tech integrated pig breeding base in Tay Ninh Province, Vietnam, with a total investment of RMB 3.2 billion, which is the company’s first overseas breeding project [1]. This move marks the official start of Muyuan’s international expansion, aiming to reduce excessive reliance on the volatile Chinese pig market and maintain medium- to long-term growth momentum.

Muyuan is actively promoting

and continuously extending its layout to the downstream slaughtering and meat product processing business. The transformation started in 2019. In the first three quarters of 2025, the company’s 10 slaughtering and processing projects achieved a total slaughter and sales volume of 21.44 million tons, a year-on-year increase of 134% [1]. The company plans to put 1-2 new slaughtering plants into operation each year, and the proportion of downstream business revenue has increased to approximately 25%, becoming a new growth driver. The Hong Kong listing will provide sufficient financial support for this transformation.

Against the backdrop of the current recovery of IPOs in the Hong Kong stock market, Muyuan is actively striving to complete one of the largest listing projects among consumer enterprises in Hong Kong this year [3]. The market expects that after the company’s successful listing, its market capitalization is expected to surpass WH Group (0288.HK) and become the pork-related enterprise with the highest market capitalization in the Hong Kong market.

Through the Hong Kong listing, Muyuan can leverage Hong Kong’s international capital market platform to enhance the company’s international reputation and brand influence, laying a foundation for subsequent overseas business expansion [2]. Just as “soy sauce champion” Haitian Flavoring & Food Co., Ltd.'s Hong Kong listing in June 2025 demonstrated, financing is not the only purpose; the deep-seated strategic intention is to build an “A+H” dual capital platform to open a new chapter in global development [2].

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According to real-time data, Muyuan Foods’ current A-share market capitalization is approximately RMB 263.2 billion (approximately US$38 billion), with a stock price of RMB 47.33, corresponding to a price-earnings ratio (P/E) of approximately 11.46 times, which is at the median level of its historical valuation range [0]. The company’s ROE reaches 29.21%, and its net profit margin is 14.50%, leading the industry in profitability.

There are significant divergences among market securities firms in their 2025 profit forecasts for Muyuan: Kaiyuan Securities predicts a profit of RMB 16.4 billion in 2025, while Huaxin Securities predicts as high as RMB 20.24 billion [1]. Calculated based on the above forecast range, the company’s P/E ratio is approximately 14 to 16 times, which is about twice the valuation of WH Group. This valuation divergence is considered the main reason for the delay in the listing process after the company’s first submission of the application.

A+H dual listing can usually bring

to enterprises, for the following reasons:

1. Liquidity Premium
   : The Hong Kong capital market is dominated by institutional investors, with a high degree of internationalization and abundant liquidity, which can enhance the liquidity of the company’s stocks
2. Brand Premium
   : Listing on the Hong Kong Stock Exchange helps enhance the company’s brand recognition in the international capital market and gain higher valuation recognition
3. Governance Premium
   : Complying with Hong Kong’s strict regulatory and information disclosure requirements can reduce information asymmetry and improve the valuation of the company’s governance level

However, it should be noted that the Hong Kong market has stricter requirements for enterprise quality than the A-share market, and enterprises with insufficient core competitiveness may face a cold reception from the capital market [4]. As an industry leader, Muyuan is expected to gain recognition from international investors.

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The A+H dual listing structure will build a

for Muyuan:

Financing Channel	Advantages
A-share Market	Solid domestic retail investor base, good liquidity
Hong Kong Market	Connect with global institutional investors, diversified financing currencies
Shanghai-Hong Kong Stock Connect/Shenzhen-Hong Kong Stock Connect	Realize interconnection between the two markets, expand investor base

The company stated that the proceeds from this H-share listing will be used for: exploring overseas opportunities to expand business territory; promoting full-industry-chain technological innovation through R&D investment in the next three years; working capital and general corporate purposes [2].

According to the 2025 follow-up rating report by CCXI, as of the end of 2024, Muyuan had obtained a total bank credit line of over RMB 110 billion on a consolidated basis, an increase of over RMB 10 billion year-on-year, of which approximately RMB 50 billion was unused [4]. The H-share listing will further supplement the company’s capital reserve for expansion, enhancing financial flexibility and risk resistance.

A+H listing can help the company achieve

:

• Enhanced Debt Financing Capacity
  : The listing status strengthens the company’s credit qualification and reduces financing costs
• Broadened Equity Financing Channels
  : The H-share issuance provides a new equity financing channel for the company
• Enhanced Capital Expenditure Capacity
  : Supports the company’s capital expenditure plan of approximately RMB 9 billion in the next three years

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According to the latest data, as of the end of March 2025, the company’s share capital slightly decreased to RMB 5.463 billion. Muyuan Industrial Group and the trust plans established by its entrustment hold a total of 15.54% of the company’s shares, and hold voting rights corresponding to more than 50% of the company’s shares in total, making it the company’s controlling shareholder; Qin Yinglin and Qian Ying hold a total of 54.91% of the company’s shares, being the actual controllers of the company [4]. After the H-share listing, the proportion of public shareholding will increase, but the company’s control structure will remain stable.

Financial Indicator	2024 Actual	2025 Forecast
Total Capitalization Ratio	51.09%	42.64%-47.13%
Total Debt/EBITDA	2.11X	1.85X-2.05X
Monetary Funds (RMB 100 million)	169.52	Expected to increase

With the H-share fundraising in place, the company will proactively increase its debt repayment efforts. It is expected that the scale of liabilities will be reduced by approximately RMB 10 billion in 2025, and the financial leverage will be improved [4].

The H-share listing enables Muyuan to obtain an

, which is of great strategic significance for the company’s future overseas mergers and acquisitions, cross-border financing, international talent incentives and other aspects. The company can use the Hong Kong market for capital operations such as follow-up financing, convertible bond issuance, and introduction of strategic investors.

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Opportunity	Analysis
Global Capital Connection	The Hong Kong market connects with global investors to obtain international capital support
Valuation Enhancement Potential	International institutional investors may give higher valuations
Brand Internationalization	Enhance international reputation to facilitate overseas market expansion
Business Risk Diversification	Reduce reliance on cyclical fluctuations in the Chinese pig market
Diversified Financing Channels	Enhance capital reserves to support long-term development strategies

Challenge	Analysis
Valuation Divergence	Different markets and securities firms have different judgments on enterprise valuation
Industry Cycle Pressure	The decline in domestic pig prices (a year-on-year decline of approximately 30% since mid-year) affects performance
Increased Compliance Costs	Complying with the regulatory systems of both regions significantly pushes up compliance costs
Recognition by International Investors	Need to explain the cyclical characteristics of the domestic pig industry to international investors
AH Price Spread Management	Need to properly handle the possible price spread issue between A-shares and H-shares

1. Strengthen Investor Relations Management
   : Proactively communicate with global institutional investors and establish a transparent information disclosure mechanism
2. Deepen Business Transformation
   : Continue to promote the downstream slaughtering and processing business to reduce the impact of upstream cyclical fluctuations
3. Technology Innovation-driven
   : Increase R&D investment to build technological barriers in intelligent breeding, breeding, nutrition management and other aspects
4. Prudent Financial Management
   : Optimize debt structure, improve capital utilization efficiency, and enhance risk resistance

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Muyuan Foods’ Hong Kong listing is an

, and the A+H dual listing structure will bring the following far-reaching impacts to the company:

• May face valuation divergence and pricing game in the short term
• Expected to gain value recognition from international institutional investors and achieve valuation premium in the long term
• The estimated P/E ratio range is 14-16 times, leading the industry average level

• New financing scale of US$1.0-1.5 billion, enhancing capital strength
• Broaden international financing channels and optimize financing structure
• Improve credit qualification and reduce comprehensive financing costs

• Optimize equity structure and improve governance level
• Enhance financial flexibility and improve debt leverage
• Build an international capital operation platform

Overall, Muyuan Foods’ A+H dual listing strategy is in line with the company’s long-term plan for international development and industrial chain extension. Despite challenges such as industry cyclical fluctuations and valuation divergence, the company’s competitive advantages as an industry leader, the rapid growth potential of its downstream business, and the support of the international capital market all provide positive support for its Hong Kong listing. After successfully realizing the dual listing, Muyuan is expected to further consolidate its leading position in the global pig breeding industry.

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[1] Yahoo Finance - “Muyuan Races for Secondary Listing on Hong Kong Stock Exchange to Accelerate Expansion into Global Breeding Market” (https://hk.finance.yahoo.com/news/牧原衝刺港股第二上市-加速進軍全球養殖市場-044550291.html)

[2] Phoenix Net Finance - “Top 10 IPO Events in the Retail Circle in 2025” (https://h5.ifeng.com/c/vivoArticle/v002aADSNL5IvN-_erTpcOsBzO08eSJSggZnXGZ3WTixaajQ__)

[3] Hong Kong Economic Journal - “New IPOs | Dongpeng Beverage and Muyuan Foods Reportedly to Conduct Pre-listing Roadshows This Week” (https://inews.hket.com/article/4067804)

[4] CCXI - “2025 Follow-up Rating Report on Muyuan Foods Co., Ltd.” (https://file.finance.qq.com/finance/hs/pdf/2025/05/20/1223588342.PDF)

[5] Hans Publishers - “Research and Analysis on A+H Dual Listing of State-owned Enterprises” (https://pdf.hanspub.org/fin2024146_211141165.pdf)

[6] Zhong Lun Law Firm - “Analysis of Special Legal Issues in H-share Listing of A-share Listed Companies” (https://www.zhonglun.com/research/articles/54239.html)

[0] Jinling API Real-time Market Data