Investment Rating - The investment rating for the agriculture, forestry, animal husbandry, and fishery industry is "Positive" (maintained) [1] Core Insights - The report indicates that after a rapid increase in pig slaughtering, pig prices have stabilized, with expectations of limited downward pressure in the short term. The overall supply of pigs is entering a contraction phase, leading to an upward trend in pig prices in Q3 2025 [4][13] - The Consumer Price Index (CPI) has shown a decline for four consecutive months, which may exert pressure on the CPI target for 2025. The report anticipates that policy measures will be implemented to support pig prices and mitigate their negative impact on CPI [5][21] - The investment logic for the pig industry is improving, with recommendations for companies such as Muyuan Foods, Wens Foodstuff Group, and others. The pet food sector is also highlighted for its growth potential, driven by domestic brands [6][33] Summary by Sections Weekly Observation - The average price of pigs in China as of June 13, 2025, is 14.02 yuan/kg, showing a week-on-week decrease of 0.05 yuan/kg and a year-on-year decrease of 4.73 yuan/kg. The report notes that the price has stabilized after a period of accelerated slaughtering [4][13] - The report discusses the impact of weather conditions, such as the "Bailu" typhoon and the rainy season in southern China, which have affected pig transportation and provided short-term support for prices [4][13] Market Performance - The agricultural sector outperformed the broader market by 1.87 percentage points during the week of June 9-13, 2025, with the agricultural index rising by 1.62% while the Shanghai Composite Index fell by 0.25% [6][36] - The pet food sector led the gains, with individual stocks such as Yuanfei Pet (+12.41%), Xiaoming Co. (+7.33%), and Shennong Group (+6.64%) showing significant increases [6][36] Price Tracking - As of June 13, 2025, the average price of pigs is 14.02 yuan/kg, with a decrease of 0.28% from the previous week. The average price of piglets is 32.89 yuan/kg, down 4.69% week-on-week [49][60] - The report also notes that corn and soybean meal prices have increased, with corn futures settling at 2370.00 yuan/ton, up 1.46% week-on-week, and soybean meal futures at 3048.00 yuan/ton, up 1.91% [60][64]

Group 1: Investment Outlook - Domestic fixed asset investment is expected to slow down, while overseas markets will be the focus of capital expenditure, with plans to establish factories in various countries as the business teams mature [2] - The company has been developing its overseas shrimp seed business for the past two to three years, particularly in Indonesia [3] Group 2: Regional Profitability - The South American region has a favorable natural resource endowment, leading to globally competitive shrimp farming costs, with rapid increases in farming volume expected to continue [4] Group 3: Risk Management - The company adopts a strict approach to controlling foreign exchange risks by carefully selecting settlement currencies and balancing regional cash flows through structural arrangements [5] Group 4: Production Capacity - Overall overseas production capacity is tight, prompting the company to actively expand its capacity in relevant regions through various means [6] Group 5: Industry Competition - The domestic feed industry is shifting from single-dimensional competition to multi-dimensional competition, focusing on seedling, animal health, feed product quality, and technical service capabilities, leading to increased industry concentration [7] Group 6: Customized Services - The company provides personalized R&D services to large clients to address their specific aquaculture challenges and needs, requiring cross-disciplinary and cross-functional support [8] Group 7: Expansion Strategy - The company primarily focuses on self-built overseas capacity expansion, considering leasing and light asset expansion methods, while remaining attentive to acquisition opportunities [9] Group 8: Investor Participation - A total of 36 investors from various institutions participated in the recent broker strategy meeting in Shanghai, including notable firms such as China International Capital Corporation and Harvest Fund Management [10]

Market Overview - The domestic market indices showed a decline, with the Shanghai Composite Index closing at 3,384.82, down 0.44%, and the Shenzhen Component Index at 10,162.18, down 0.86% [4] Non-Bank Financial Sector - The report highlights an increase in share buybacks among brokerages, with six firms having repurchased a total of 129 million shares for 1.31 billion yuan as of June 5. This reflects management's confidence in their company's value and aims to optimize capital structure [7] - The average price-to-book ratio for the securities industry is currently at 1.33x, which is at the 38.20% percentile since 2018, indicating a certain level of value in the sector [7] - The report suggests that the ongoing reforms in the capital market will clarify the development paths for the industry, with brokerages focusing on mergers and acquisitions to enhance capital quality [7] Chemical Raw Materials Sector - The new materials sector saw a slight increase, with the New Materials Index rising by 0.77%, although it underperformed compared to the ChiNext Index [8] - The report notes that the National Development and Reform Commission has issued guidelines to encourage the use of green electricity, which is expected to drive the wind power installation market [10] - The wind power sector is projected to see new installations of approximately 105-115 GW in 2025, with a significant portion coming from onshore wind [10] Agriculture Sector - The report indicates a decline in pig prices, with average prices in key provinces dropping by 3.15% to 3.46% as of June 6. The average pork price fell by 1.11% [11] - The report expresses optimism about the operational outlook for Haida Group, citing potential growth from its overseas feed business and a recovery in the feed industry due to lower raw material prices [11] - The report emphasizes that the current cycle in the pig farming industry may lead to a prolonged profitability period, contrary to market pessimism [11]

Investment Rating - The industry investment rating is maintained as "Increase" for the agricultural sector [6] Core Viewpoints - The agricultural sector outperformed the market by 0.03 percentage points during the week of June 3-6, 2025, with the index closing at 2,682.22, reflecting a weekly increase of 0.91% [1][15] - The pig farming sector is experiencing a downward trend in prices, with the average price of pigs at 14.05 yuan/kg, a week-on-week decrease of 2.43% and a year-on-year decrease of 23.89% [2] - The poultry sector is seeing stable chick prices but weak adjustments in meat chicken prices due to high inventory levels in downstream slaughtering [2] - In the agricultural products segment, wheat and soybean meal prices are weak, while japonica rice prices have increased [3] Summary by Sections 1. Market Review - The agricultural sector index rose by 0.91% and ranked 20th among 31 sectors [1][15] - The fishery sector showed the best performance with a 1.34% increase, followed by planting, feed, agricultural product processing, and breeding sectors [1][17] 2. Industry Key Data 2.1 Pig Farming - The average price of pigs is 14.05 yuan/kg, down 2.43% week-on-week and down 23.89% year-on-year [2] - Self-breeding profits are at 33.83 yuan/head, a decrease of 1.82 yuan/head week-on-week, while profits from purchased piglets are at -120.80 yuan/head, down 36.43% week-on-week [2] 2.2 Poultry - The average price of meat chicken chicks is 2.84 yuan/chick, down 1.05% week-on-week, and the price of white feather meat chickens is 7.32 yuan/kg, down 0.68% week-on-week [2] 2.3 Agricultural Products - The average price of wheat is 2,433.61 yuan/ton, down 0.82% week-on-week; japonica rice is at 2,876.00 yuan/ton, up 0.42% week-on-week; and soybean meal is at 2,940.00 yuan/ton, down 0.54% week-on-week [3] 3. Investment Recommendations - The report suggests focusing on the aquaculture feed industry due to the upcoming sales peak in summer and rising prices of certain fish species [4] - In pig farming, companies with strong cost control or clear cost reduction paths are recommended, including Muyuan Foods, Wens Foodstuff Group, and others [4] - For poultry, attention is drawn to integrated industry leaders like Shengnong Development and Lihua Stock for their stable expansion and cost advantages [4] - In the feed sector, companies like Haida Group and Hefeng Stock are highlighted for benefiting from the recovery in livestock inventory [4] - For agricultural products, companies like Suqian Agricultural Development and Beidahuang are recommended for their focus on food security [4]

Core Insights - The poultry feed industry in China is experiencing significant growth, driven by the African swine fever's impact, increased penetration of large-scale farming, and advancements in feed formulation technology [1][11] - By 2024, poultry feed production is projected to reach 97.54 million tons, accounting for 75.1% of total poultry feed, indicating strong demand from the consumption side [1][11] Group 1: Industry Overview - Poultry feed is specifically designed to provide essential nutrients for the growth, development, reproduction, and health of meat poultry [2] - The industry focuses on high-energy and high-protein formulations, utilizing pelletized feed for continuous feeding and relying on antibiotics and growth promoters to shorten feed-to-meat ratios [2][4] - The production cycle for meat poultry is typically 42-47 days, while egg-laying poultry has a longer cycle of over 72 weeks [2][4] Group 2: Policy Background - China's poultry feed policies emphasize reducing soybean meal usage, enhancing quality, and optimizing layout, promoting low-protein diets and diversified formulation standards [5] - The government supports local supply chains and high-value transformation through subsidies and technological research, particularly in major soybean-producing regions [5][6] Group 3: Industry Chain - The upstream of the poultry feed industry relies on energy and protein raw materials like corn and soybean meal, with a focus on optimizing raw material structures through reduction technologies [7] - The midstream production is shifting towards functional and customized products, while the downstream sector is accelerating standardization and integration with processing enterprises [7][9] Group 4: Current Industry Status - Since 2012, the poultry feed production has maintained an average annual growth rate of approximately 4.5%, with a notable increase from 2019 to 2024 due to various market dynamics [11] - The concentration of production is primarily in Shandong, Henan, and Guangdong provinces, benefiting from established logistics networks and industrial clusters [11] Group 5: Competitive Landscape - The poultry feed market is characterized by leading enterprises like New Hope, Haida Group, and Wen's Group, which leverage full industry chain integration to enhance competitive advantages [13][15] - New Hope, as a major player, achieved a total feed sales volume of 25.96 million tons in 2024, maintaining a leading position in the domestic market [15] Group 6: Future Trends - The poultry feed industry is moving towards deep integration of biotechnology and automation, focusing on improving feed conversion rates and reducing environmental impacts [17] - The implementation of antibiotic bans is driving the development of alternative products, while smart production technologies are enhancing operational efficiency [17] - Market concentration is expected to continue rising, with leading companies expanding through mergers and acquisitions and focusing on customized services for large-scale farms [17]

Group 1: Investor Relations Activity - The company participated in a broker strategy meeting in Chengdu with 17 investors from various institutions [2] - The meeting was hosted by the Securities Department Manager, Li Tanhang [2] Group 2: Sales and Market Performance - In 2024, the company's overseas feed sales reached 2.36 million tons, a year-on-year increase of approximately 40%, accounting for about 10% of total feed exports [2][4] - The company aims to achieve a short-term target of 3 million tons in feed sales by 2025, with cumulative external sales exceeding 2 million tons to date [4] Group 3: Industry Insights - The poultry inventory remains stable, while pig prices are consistently above cost, with an increase in inventory [3] - Most special fish species have seen price increases year-on-year, with some at historical highs; common fish have stabilized after a loss period [3] Group 4: Future Development Plans - The company plans to accelerate overseas feed business expansion, targeting 7.2 million tons in sales by 2030, focusing on Southeast Asia, Africa, and South America [5] - In Southeast Asia, Vietnam is the core market, with expansions planned in Indonesia, Bangladesh, and Malaysia; in Africa, Egypt serves as a hub for further market penetration [5] Group 5: Research and Development - The company has a research team of nearly 4,000 people, with cumulative R&D investment exceeding 5 billion yuan [7] - A comprehensive three-tier R&D system supports the company's rapid development, with a large database for animal nutrition needs and raw material formulation technology [7][8] Group 6: Competitive Landscape - The pig feed market has seen significant changes, with competition easing compared to the previous year, but remains intense overall [8] Group 7: Capital Expenditure - Capital expenditure will focus on overseas markets, while domestic spending will prioritize upgrading and renovating existing capacities [8]

Investment Rating - The report maintains an "Outperform" rating for the agricultural sector, particularly highlighting the potential for valuation recovery among leading companies in the industry [4]. Core Insights - The report is optimistic about the reversal of the beef cycle, recommending investments in the pet industry and Hai Da Group, while also focusing on undervalued leaders in the pig and poultry sectors [3]. - Key observations include a stable supply of live pigs, a potential upward trend in beef prices by 2025, and a gradual shift in chicken consumption patterns [3][4]. - The report emphasizes the importance of agricultural asset allocation, suggesting that high-quality agricultural assets are likely to see valuation recovery [1]. Summary by Sections Weekly Agricultural Price Tracking - Live pig prices were reported at 14.06 CNY/kg, with a week-on-week decrease of 2.29% [1]. - Chicken prices showed a decline, with broiler prices at 7.14 CNY/kg, down 2.19% week-on-week [1]. - Beef prices remained stable at 59.38 CNY/kg, reflecting a year-on-year increase of 28.39% [1][3]. Key Product Insights - **Beef**: Anticipated upward cycle by 2025 due to domestic supply reduction and import contraction [3]. - **Poultry**: White chicken consumption is expected to gradually increase, while yellow chicken may benefit from improved domestic demand [3]. - **Eggs**: Supply pressures are expected to persist, with prices at 2.83 CNY/jin, down 4.07% week-on-week [1][3]. Investment Recommendations - Recommended investments include: - Beef: Guangming Meat Industry, among others [3]. - Pets: Guibao Pet, Zhongchong Co., and Ruip Bio [3]. - Feed: Hai Da Group [3]. - Swine: Muyuan Foods, Huazhong Foods, and others [3]. - Poultry: Lihua Co., Yisheng Co., and others [3].

Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Viewpoints - The report highlights that the acceleration of pig weight reduction and the resulting supply contraction will likely support a gradual increase in pig prices in the second half of 2025. The current downward pressure on pig prices is expected to be limited due to a forthcoming supply gap [4][13] - The beef market is anticipated to remain strong through 2025-2026, driven by slow recovery in supply and the price disparity between pork and beef. Global beef prices reached a historical high of 294.07 cents per pound in April 2025, up 8.69% year-on-year [5][23] - The report emphasizes the low valuation of the pig farming sector, presenting a value opportunity for investors. It recommends several companies including Muyuan Foods and Wens Foodstuffs [6][29] Summary by Sections Weekly Observation - The report notes that the acceleration of pig weight reduction has led to a short-term decline in pig prices, with the national average price at 14.07 yuan/kg as of June 6, 2025, down 0.37 yuan/kg week-on-week and 4.38% year-on-year. The supply gap is expected to support prices in the latter half of 2025 [4][13][20] Weekly Market Performance - The agricultural index underperformed the market by 0.22 percentage points, with the agricultural index rising by 0.91% compared to a 1.13% increase in the Shanghai Composite Index. The pet food sector showed the highest gains [6][33] Price Tracking - As of June 6, 2025, the average price of external three-yuan pigs was 14.06 yuan/kg, down 0.41 yuan/kg from the previous week. The average price of piglets was 34.51 yuan/kg, down 0.73 yuan/kg. The profit for self-bred pigs was 33.83 yuan/head, while the profit for purchased piglets was -120.80 yuan/head [7][45][47] Recommendations - The report recommends investments in the pig farming sector due to its low valuation and potential for recovery, highlighting companies such as Muyuan Foods, Wens Foodstuffs, and Juxing Agriculture. It also suggests investing in the feed sector, which benefits from strong overseas demand [6][29][32]

Core Insights - The report highlights a positive outlook for various sectors, with specific companies identified as key investment opportunities based on their performance and market conditions [5][11][15][19][23][27][31][35][39][44]. Company Summaries 招商银行 (China Merchants Bank, 600036) - The bank's Q1 2025 performance showed a decline in revenue and net profit, with operating income at 837.51 billion yuan, down 3.09% year-on-year, and net profit at 372.86 billion yuan, down 2.08% [11]. - The bank maintains a high dividend payout ratio, with a projected dividend of 2 yuan per share for 2024, resulting in a dividend yield of 4.60% based on the May 29 closing price [11]. - The bank's asset quality remains under pressure, particularly in retail loans, with a non-performing loan ratio of 0.94% [11]. 紫金矿业 (Zijin Mining, 601899) - The company reported significant growth in mineral production, achieving 1.07 million tons of copper and 73 tons of gold in 2024, with production costs decreasing [15]. - Zijin Mining's resource reserves are expanding, with successful exploration projects and acquisitions enhancing its market position [15]. - The company expects continued growth in copper and gold prices, supporting its revenue projections for 2025 [15]. 三美股份 (Sanmei Co., 603379) - The company experienced a substantial increase in revenue from its refrigerant products, with a 30.28% year-on-year growth in 2024 [19]. - The average selling price of refrigerants rose significantly, contributing to improved profitability [19]. - The company is well-positioned in the refrigerant market, with ongoing price increases expected in 2025 [19]. 青岛啤酒 (Qingdao Beer, 600600) - The company reported a revenue of 321.38 billion yuan in 2024, with a net profit of 43.45 billion yuan, showing signs of recovery in the beverage sector [23]. - The management is optimistic about demand recovery as the peak season approaches, supported by favorable government policies [23]. - EPS projections for 2025 are set at 3.52 yuan, with a "buy" rating maintained [23]. 恒瑞医药 (Hengrui Medicine, 600276) - The company achieved a 20.14% year-on-year growth in revenue for Q1 2025, driven by its innovative drug portfolio [27]. - Hengrui's focus on R&D has led to the development of multiple new drugs, enhancing its market competitiveness [27]. - EPS for 2025 is projected at 1.05 yuan, with a "buy" rating maintained [27]. 海大集团 (Haida Group, 002311) - The company reported a 9% increase in feed sales in 2024, with significant growth in international markets [31]. - Haida is actively pursuing international expansion, particularly in Southeast Asia and Africa, to enhance its market presence [31]. - EPS projections for 2025 are set at 3.01 yuan, with a "buy" rating maintained [31]. 华电国际 (China Huadian Corporation, 600027) - The company completed a significant asset restructuring, expected to enhance its operational scale and market share [35]. - Post-restructuring, the company anticipates a 25.07% increase in revenue and a 5.93% increase in net profit [35]. - EPS projections for 2025 are set at 0.64 yuan, with a "buy" rating maintained [35]. 胜宏科技 (Shenghong Technology, 300476) - The company reported a 35.31% increase in revenue for 2024, driven by strong demand in the PCB sector [39]. - Q1 2025 saw an 80.31% increase in revenue, with significant growth in high-value product orders [39]. - EPS projections for 2025 are set at 5.09 yuan, with a "buy" rating maintained [39]. 中国电信 (China Telecom, 601728) - The company reported a 3.1% year-on-year increase in revenue, with a focus on digital transformation and service innovation [44]. - The mobile user base continues to grow, contributing to stable revenue streams [44]. - EPS projections for 2025 are set at 0.39 yuan, with a "buy" rating maintained [44].

Summary of Key Points Core Viewpoint - The June stock recommendations from 42 brokerage firms show a significant increase in the number of recommended stocks, with the pharmaceutical and biotechnology sector returning to the top of the industry recommendation rankings after three years, indicating a renewed market interest in cyclical industries [1][3]. Stock Recommendations - A total of 332 stocks received 457 recommendations, with 42 stocks from the ChiNext gaining 53 recommendations, 45 stocks from the STAR Market receiving 59 recommendations, and 43 Hong Kong stocks getting 62 recommendations, marking an increase of 6 and 7 stocks respectively compared to the previous month [1]. - Six stocks received recommendations from five brokerage firms: China Merchants Bank, Yara International, Smoore International, SF Holding, Qingdao Beer, and Haida Group [1]. - Six stocks received recommendations from four brokerage firms: Zijin Mining, China Mobile, Zhenhua Heavy Industries, Tencent Holdings, Hangzhou Bank, and Dongpeng Beverage [1]. Industry Rankings - The pharmaceutical and biotechnology sector achieved a recommendation rate of 10.2%, reclaiming the top position, while the electronics sector fell to second place with a recommendation rate of 9.3% [3]. - The food and beverage sector ranked third with a recommendation rate of 6.58%, and the machinery equipment sector ranked fourth with a rate of 6.35% [3]. - The coal industry saw a significant increase in recommendation rate by 59.6%, while the transportation sector increased by 52.1%, indicating a positive outlook for these industries [3]. Declining Industry Interest - The retail trade sector experienced a notable decline in recommendation rate by 43.17%, attributed to renewed trade tensions and previous excessive price increases [4]. - The defense and military industry saw a decrease of 34.77%, mainly due to the easing of the Russia-Ukraine situation [4]. - The automotive sector's recommendation rate dropped by 30.99%, reflecting concerns over industry competition [4]. Performance of Brokerage Recommendations - In May, 30 out of 45 brokerage firms reported positive returns, with the top performers being Guoyuan Securities (6.28%) and Caitong Securities (5.93%) [5][6]. - As of May 30, 36 out of 45 brokerage firms had positive returns for the year, with 16 firms achieving returns close to or exceeding 10% [6]. Market Outlook - Analysts suggest that June will see continued improvement in returns and win rates, with a focus on large-cap growth stocks, although the market is expected to remain volatile [7]. - The market sentiment has been affected by fluctuating U.S. tariff policies and slow progress in U.S.-China trade negotiations, which are key factors influencing market risk appetite [7].