Shares of Muyuan Foods Group Co., Ltd. (02714) fell more than 4% in Hong Kong trading, with the stock slipping 4.46% to HK$37.66 at the time of writing, on turnover of HK$157 million.

The decline follows the company's latest operational data for August. During the month, Muyuan sold approximately 7.03 million commercial hogs, up slightly by 0.42% year-on-year. However, the average selling price for commercial hogs stood at roughly RMB 10.30 per kilogram, representing a sharp 23.76% decrease year-over-year. Correspondingly, revenue from commercial hog sales fell about 21.90% year-on-year to approximately RMB 9.254 billion.

The significant annual declines in both selling price and revenue are primarily attributed to market fluctuations in the hog sector. According to CITIC Securities, hog prices continued a downward trend throughout the first half of the year, hitting a ten-year low in April with the monthly average price dropping to RMB 9.32 per kilogram. Currently, hog prices remain low with ongoing range-bound fluctuations.

At the listed company level, sector-wide losses deepened each quarter during the first half, putting overall earnings under considerable pressure. Looking ahead, securities analysts project that second-half hog prices will continue to oscillate below the cost line. Meanwhile, as government policies continue to constrain production capacity among major producers, the industry is expected to maintain its capacity reduction trend. This sets the stage for a potential recovery in hog price fortunes by 2027.