Summary of the Conference Call on China's Hog Industry Industry Overview - The hog industry in China is currently facing significant challenges, with hog prices dropping to approximately RMB10/kg year-to-date, leading to widespread losses across the sector [1][13][14]. - The first quarter of 2026 is expected to see the worst net losses for hog breeding companies, with all companies under coverage anticipated to report losses due to prices falling below breakeven costs [1][14]. Key Insights Current Financial Performance - Companies with strong cost control, such as Muyuan and Wens, managed to remain marginally profitable in January-February 2026, while others are expected to report losses [1][13]. - Impairment losses on biological assets are anticipated for all hog breeding companies in 1Q26, further impacting profitability [1][14]. Future Projections - A moderate upcycle in hog prices is expected in 2027, driven by a reduction in sow inventories, which is a leading indicator for hog supply [2][3][17]. - The average selling price (ASP) of hogs is projected to be RMB12.5/kg in 2026, with an anticipated increase to RMB14.5/kg in 2027 [3][17]. Sow Inventory and Production - Sow inventory reduction is expected to accelerate in 2Q26 as piglet prices fall below costs, which will support the hog price upcycle in 2027 [2][17]. - Despite a downward trend in sow inventory since 2022, improvements in breeding efficiency have kept hog supply ample, with a projected 2% year-on-year increase in supply for 2026 [3][15]. Company Ratings and Target Prices - **Muyuan Foods**: Upgraded to Buy from Hold, target price raised to RMB56.90 from RMB46.60, with a projected net profit of RMB14,797 million for 2026 [4][5]. - **Wens Foodstuff**: Upgraded to Buy from Hold, target price increased to RMB19.90 from RMB16.60, with a projected net profit of RMB5,151 million for 2026 [4][5]. - **Dabeinong**: Maintained Buy rating, target price set at RMB5.00, with a projected net profit of RMB548 million for 2026 [5][12]. - **New Hope**: Maintained Reduce rating, target price lowered to RMB6.10 from RMB6.20, with a projected net loss of RMB1,645 million for 2026 [5][11]. Risks and Considerations - Key risks include the potential impact of African Swine Fever, slower-than-expected industry capacity reduction, and higher-than-expected raw material price hikes [10][11]. - The hog breeding sector is sensitive to fluctuations in hog prices, which could significantly affect net profits, especially in the first quarter of 2026 [10][11]. Conclusion - The hog industry in China is currently in a challenging phase, with significant losses expected in the short term. However, a cautious optimism exists for a price recovery in 2027, contingent on sow inventory reductions and market adjustments. Companies with strong cost management are likely to navigate these challenges more effectively.

1. Report Industry Investment Rating No information provided. 2. Core Viewpoints of the Report - The industry is currently in the critical and painful period of "market - driven deep - loss production reduction". Policy signals for production reduction have been released, but in the short term, the supply peak and passive inventory accumulation dominate the market. Spot prices have broken through support levels, and high feed costs are squeezing the high premium in the futures market [2]. - The production capacity reduction shows dual characteristics of "policy guidance + market - driven". Deep losses may force small and medium - sized散户 and cash - strapped large - scale farms to exit. The extent of reduction determines the upward elasticity of pig prices from the end of 2026 to 2027 [2]. - In the second quarter, spot prices will be under pressure. Passive inventory accumulation will suppress price rebounds. With no bright spots in consumption and high fattening costs, secondary fattening is inhibited. Spot prices are likely to fluctuate weakly, and there will be no trend improvement [2]. - For the near - month contract (LH2605), maintain the idea of "selling on rallies"; LH2607 may be structurally mispriced, but there are no short - term driving factors; for far - month long positions from the end of this year to 2027, it is recommended to wait and see and wait for the inflection point of production capacity reduction to be clear before making a layout [2]. 3. Summary by Related Catalogs 1.1 Intensification Degree Improvement: Pricing Power Transferred to Group Farms - In 2025, the domestic pig - farming pattern showed distinct characteristics of "triple superposition and regional reconstruction". Listed companies and large - scale breeding groups with over 10,000 sows together control 43.1% of the breeding sow inventory, occupying a dominant position. Small and medium - sized farms (200 - 3000 sows) account for 27.4%, becoming an important intermediate layer for stabilizing production capacity and connecting with the market. The proportion of small - scale farmers (less than 200 sows) has shrunk to 16.9%, gradually withdrawing from the mainstream production capacity system [5]. 1.2 Cycle Deduction Characteristics: Rhythm and Trend Entwined - There is a situation of strong expectations and a bottom - grinding spot market. Periodic market trends occur, evolving from "sideways bottom - grinding" through emotional games to "reconstruction of far - month contracts" driven by expectations and "valuation repair" with the realization of reality [7]. 2.1 Current Market Still in a State of Oversupply 2.1.1 Fact of High Inventory - Affected by the increase in sow production capacity last year, the national pig inventory steadily recovered in 2025, with a clear trend of production capacity restoration. Currently, the supply is resilient, and the pig inventory of sample enterprises from January to February 2026 is still at the highest level in the same period [9]. 2.1.2 Gradual Release of Slaughter Pressure - According to National Bureau of Statistics data, in 2025, the cumulative pig slaughter was 71.973 billion heads, a year - on - year increase of 2.4%. Data from 196 sample enterprises monitored by Zhuochuang Information showed that the cumulative pig slaughter from January to February 2026 increased by 9.5%, further confirming the steady increase in the market share of large - scale and above pig enterprises [13]. 2.2 With the Deterioration of Breeding Profits, Breeding Sows Enter the Production Reduction Stage - Since 2025, under the multiple effects of precise policy regulation, fluctuating and bottom - seeking market prices, and differentiated decision - making among different - scale breeding entities, the inventory of breeding sows has gone through four stages: "high - level stalemate - inefficient clearance - accelerated reduction - industry differentiation" [16]. - The normal production - reduction logic chain is: decline in commercial pig sales profit -> accelerated commercial pig slaughter -> accelerated culling and reduced replenishment. After the decline in commercial pig prices, the market usually enters the stages of piglet inventory reduction and breeding sow production capacity reduction. Piglet profit often recovers earlier than commercial pig profit in the profit - recovery stage [23]. - Since March, in addition to the continuous decline in commercial pig prices, the demand for piglet replenishment in the market has decreased, and piglet prices have fallen below the cost line. Piglet losses may further strengthen the logic of sow production reduction [24]. - Comparing the price ratio of breeding sows to commercial pigs, the year - on - year decline in 2025 was significant, indicating that the market's willingness to cull sows was significantly stronger than in 2024. In early 2026, the culling process slowed down; recently, with the sharp decline in spot prices, culling has accelerated, and the culling price of sows has continued to decline. The culling volume of sows in March is likely to show a significant month - on - month increase [28]. 2.3 In Summary, in Terms of Rhythm, Policy - Driven Production Reduction Comes First, Followed by Market - Driven Production Reduction, and the Latter is Repeated Policy Intervention - A series of policy measures mark the emergence of the policy bottom, and the industry has officially entered the dual - track adjustment stage of "inventory reduction + production reduction" [32]. Listed Companies - Different enterprises have shown obvious differences in the production capacity layout of breeding sows. As of the end of the second quarter of 2025, the breeding sow inventory of Tianbang Food and Shennong Group increased significantly compared with the end of 2024. Other companies had a gentle growth rate, and the breeding sow inventory of leading enterprise Muyuan Co., Ltd. slightly decreased compared with the end of the previous year. As of the end of September 2025, Muyuan's sow inventory decreased to 3.305 million heads, a 6% decrease from the end of 2024 and a 3.8% decrease from the end of the second quarter of 2025. As of the latest, the breeding sow inventory of 17 listed pig enterprises continued to decline by 1.8% compared with the third quarter of 2025 [34][35]. According to Agricultural Rural Ministry Data - The decline in breeding sow inventory began to narrow in December 2025. The breeding sow inventory reached its peak from June to July 2025 and has been decreasing continuously since August. From December 2025 to February 2026, the breeding sow inventory of some samples showed a reverse upward trend [37][40]. 3.1 Supply Side: The First Quarter of 2026 is Still the Slaughter Peak, and Medium - and Long - Term Production Reduction May be Interfered by the Increase in MSY - From May to October 2025, the number of piglet births increased month by month, reaching the peak of the year in October. From October to December 2025, the number of piglets decreased, and it increased again in January 2026. The corresponding peak of commercial pig slaughter will occur at the end of the first quarter of 2026 [43][48]. 3.2 Demand Side: Seasonal Consumption Off - Season and Weakening Demand for Fat Pigs - In terms of total demand, the slaughter volume increased year - on - year due to the increase in supply. However, considering the downstream market's pre - holiday sales situation, the boost from year - end curing was relatively limited. Suppressed by the fourth - quarter supply, the spot market did not show a strong peak - season performance. After the Spring Festival, demand returned to the off - season level, and the seasonal weakening of the price difference between fat and lean pigs further inhibited the market's willingness to hold pigs for weight gain and engage in secondary fattening [49]. 3.3 Inventory: The Focus of the Near - Term Market is the Inventory Inflection Point - Currently, the average slaughter weight has rebounded against the trend, and the market is in a stage of passive inventory accumulation due to oversupply. Although group farms have started to adjust by reducing the slaughter weight, the high utilization rate of secondary - fattening pens under the current low - price spot market and the significant passive hoarding behavior of secondary - fattening farmers have offset the active adjustment of group farms, leading to a further increase in the overall average slaughter weight and increasing the supply pressure of live pigs in the market [51][56][61]. - In 2025, the price difference between fresh and frozen pork weakened overall, and the frozen - pork market had supply but no demand. The cold - storage utilization rate showed a trend of first decreasing and then increasing. Due to losses from incorrect inventory decisions by slaughtering enterprises in the past two years, the decision - making on meat cutting in the first half of the year was more cautious. The high cost of spot inventory in the first half of the year made inventorying unprofitable. In the downward cycle, the frozen - pork market usually follows the weakening of the fresh - pork market, and there is no strong speculative intention. It was not until after October when the spot price dropped sharply that the cold - storage utilization rate recovered due to increased active and passive meat cutting [65]. 3.4 Feed - In 2025, the cost advantage was prominent, and the cost of meat production decreased (TOP5: <12 yuan/kg). In 2026, due to the spill - over of geopolitical risks, the prices of feed raw materials fluctuated more severely, and feed mills raised prices multiple times [69]. - The feed sales data can provide a side - view of the inventory situation. In February, due to the Spring Festival holiday, overall feed sales declined significantly. In January, the month - on - month decline in fattening feed sales was driven by accelerated pre - holiday slaughter, but due to increased enthusiasm for piglet replenishment, the month - on - month increase in nursery feed was significant [73][76]. 4.1 Summary of Views - On the supply side, spot prices continue to decline, showing a trend of increasing supply and falling prices. The industry's passive inventory accumulation reflects the real - world pressure of severe oversupply. With the decline in spot prices, there may be short - term price - support sentiment, but with the continuous peak of slaughter and the soaring feed prices, the rebound of spot prices is limited. The possibility of an extended loss cycle further strengthens the far - month reversal logic, and attention should be focused on the 2027 contracts. - On the demand side, secondary fattening and frozen - meat cutting and inventorying are periodic variables. However, based on the continued weakening of the price difference between fat and lean pigs, the recovery of terminal consumption in the seasonal consumption off - season is relatively limited, and it is difficult to support a strong price rebound. - Currently, the focus in the near term is still on inventory pressure, while the far - month driving force depends on market - driven factors such as accelerated inventory reduction, falling spot prices, and further deterioration of profits, as well as the implementation of relatively clear policy plans. After the sharp decline in spot prices after the Spring Festival in 2026, it may drive the industry to resume the production - capacity reduction that was delayed at the beginning of the year due to the slow market recovery. A medium - and long - term cycle reversal is expected, but the high point of the reversal is uncertain due to the large previous production - capacity base. In short, without the effective impetus of policy - driven production reduction, the price elasticity brought about by market - driven production reduction requires a relatively "poor" market environment. 4.2 Strategies - LH2605: Continue to trade based on inventory pressure. The futures premium is high, and the premium may be squeezed out. - LH2607: A transitional contract with characteristics of a supply - demand inflection point, suitable for arbitrage and hedging. - LH2609 - 2701: With a reversal expectation, wait for a sharp decline and then buy (supported by the industry's lowest cost of 11.2 - 11.3 yuan/kg).

Macro Insights - The balance between growth and inflation in the US has worsened due to high oil prices from the US-Iran conflict, impacting economic growth and raising inflation expectations [3][4] - March economic growth in the US showed slight weakness, with declines in consumer spending and business investment, alongside a weak real estate market [3] - The US labor market is showing signs of cooling, with February non-farm payrolls and broad employment data indicating a slowdown [3] Oil Market Impact - High oil prices are beginning to drag on global demand, with March composite PMIs for the US, Europe, and Japan falling short of expectations [4] - The geopolitical situation in the Middle East remains uncertain, with ongoing concerns about the long-term risks of the US-Iran conflict [4] Investment Strategy - Investors are advised to maintain a cautious approach, reducing exposure to sectors heavily reliant on external demand, particularly in Europe and Asia [4] - There is a recommendation to increase allocations in domestic consumption sectors, particularly essential and service consumption, which show resilience [4] Energy Sector Analysis - The report highlights the potential for the lithium battery supply chain to improve in April, with production expected to increase across various components [10] - The demand for lithium batteries is supported by the rapid increase in domestic passenger vehicle battery capacity and strong commercial vehicle penetration [10] Nuclear Energy Outlook - The ongoing Middle East conflict is expected to positively influence global nuclear power policies, with countries likely to accelerate nuclear power station restarts to mitigate LNG supply chain disruptions [11] - The dual reinforcement of supply and demand logic for natural uranium is anticipated due to the conflict, highlighting the importance of monitoring supply chain dynamics [11] Company Performance Highlights - Rongchang Bio reported a revenue of 3.251 billion yuan for 2025, a year-on-year increase of 89.4%, with a return to profitability [17] - Sutech reported a revenue of 1.941 billion yuan for 2025, a year-on-year increase of 17.7%, with a significant reduction in losses compared to the previous year [18] - Muyuan Foods achieved a revenue of 144.145 billion yuan in 2025, a 4.49% increase, despite a decline in net profit due to falling pig prices [19] Market Trends - The report indicates a cautious outlook for the fixed income market, with expectations of continued volatility due to geopolitical tensions and inflation concerns [7][14] - The energy sector remains a focal point for investment, with recommendations to focus on companies with strong pricing power in the context of high oil prices [5]

Investment Rating - The report maintains a positive investment rating for the pig farming sector, recommending specific companies such as Muyuan Foods, New Hope Liuhe, and Tianhong Biological [4][3]. Core Insights - The report highlights a significant drop in pig prices to 9.3 yuan per kilogram, with self-breeding and self-raising operations facing an average loss of nearly 350 yuan per head [3][4]. - The report anticipates a potential acceleration in industry capacity reduction due to ongoing losses and stricter policy controls [4][3]. - The average weight of pigs at slaughter has increased to 128.71 kg, indicating a slight upward trend in market dynamics [4][3]. - The report suggests that the pig farming industry is likely to experience a new cycle of price increases by the end of 2026, driven by policy implementation and capacity adjustments [4][3]. Summary by Sections Industry Overview - The agricultural sector index has decreased by 2.94% this week, underperforming compared to the Shanghai Composite Index [17][21]. - The report notes that the pig farming sector has been experiencing continuous losses, with a significant decline in prices and profitability [4][3]. Price Trends - The report details the current prices of various agricultural products, including a drop in corn prices to 2452.75 yuan per ton and stable soybean prices at 4277.37 yuan per ton [36][45]. - The average price of white feather parent stock has risen to 50.16 yuan per set, reflecting market fluctuations [5][7]. Market Dynamics - The report indicates that the pig farming industry is facing a tightening of production capacity regulations, with a proposed reduction in the breeding sow inventory to around 36.5 million heads [4][3]. - The report emphasizes that the valuation of pig farming companies is at historical lows, suggesting potential investment opportunities [4][3].

Market Strategy - The market is expected to experience a "slow bull" phase in April after a "first suppress then rise" trend in March, providing a valuable window for long-term investment opportunities [2][6] - The external geopolitical risks, particularly in the Middle East, are anticipated to continue affecting market sentiment, but the internal stability of the market remains intact [6] Style Strategy - The investment style is characterized by a focus on energy security and advanced manufacturing, with the renewable energy sector (solar, wind, and power transmission) being a core theme due to China's competitive advantages [3] - The agricultural sector is highlighted as a potential area for investment due to recent price corrections, presenting opportunities for a second left-side layout [3] Industry Strategy - In the agricultural sector, pig prices have dropped to a historical low of 9.4 yuan/kg, leading to accelerated capacity reduction and production adjustments, which are expected to result in a price rebound before May [7] - The report emphasizes the potential for growth in the livestock breeding sector and related animal health industries [7] Thematic Strategy - The report reaffirms that energy security concerns will accelerate the international expansion of China's new energy vehicles (NEVs), with significant increases in orders from countries like Australia, the Philippines, and Thailand [4][7] - Domestic companies such as BYD and SAIC are noted for their rising sales and market presence in the NEV sector [7]

Market Strategy - The market is expected to maintain a volatile bottoming phase, with a focus on buying into high-growth performance sectors [5][11] - The overall market sentiment remains cautious due to external uncertainties, particularly geopolitical tensions in the Middle East, which may suppress market risk appetite [11] - Earnings reports due by the end of April are anticipated to significantly influence market trends, with high-valuation sectors facing potential pressure [11] Economic Insights - In January and February 2026, profits of large-scale industrial enterprises in China grew by 15.2%, totaling 10,245.6 billion yuan [17][18] - State-owned enterprises reported a profit of 3,665.6 billion yuan, a 5.3% increase, while private enterprises saw a 37.2% increase to 2,844.5 billion yuan [18] - The mining sector's profits increased by 9.9%, while the manufacturing sector's profits rose by 18.9% [18] Industry Dynamics - The semiconductor discrete device industry experienced a profit growth of 130.5% in the first two months of 2026 [28] - The U.S. has initiated a 337 investigation into TOPCon solar cell products, affecting several major Chinese manufacturers [26][27] - Guangdong province is optimizing housing provident fund policies to support housing consumption, particularly for families with multiple children [30] Company Updates - Rongchang Bio (688331.SH) reported a revenue of 3.251 billion yuan for 2025, a year-on-year increase of 89.36%, with a net profit of 710 million yuan [33] - Guotou Zhonglu (600962.SH) achieved a net profit of 41 million yuan in 2025, up 39.88% year-on-year [35] - Andeli (605198.SH) reported a net profit of 330 million yuan for 2025, reflecting a 26.71% increase [37] - Muyuan Foods (002714.SZ) reported a net profit of 15.487 billion yuan for 2025, a decline of 13.39% year-on-year due to falling pig prices [40] - Dingtai High-Tech (301377.SZ) plans to invest 5 billion yuan in a smart manufacturing headquarters project, with a revenue increase of 35.70% in 2025 [43][44]

Core Viewpoints - The pig prices have entered a bottom area, with a focus on the water product seedling situation in April [1] - The report maintains a "Buy" rating for the agricultural, forestry, animal husbandry, and fishery sector [2] Market Review - In March 2026, the agricultural, forestry, animal husbandry, and fishery sector outperformed the CSI 300 index by 0.04 percentage points, with the sector declining by 4.38% compared to a 4.42% decline in the CSI 300 [18][19] - The livestock breeding sector experienced a smaller decline of 1.4% in March [18][22] Livestock Breeding - In March 2026, the national average price of live pigs was 10.06 CNY/kg, down 12.2% month-on-month and down 30.7% year-on-year [28][29] - The average loss for self-bred pigs in March was approximately 291 CNY per head, a decrease of 192 CNY month-on-month [31] - The average price of piglets was 23.6 CNY/kg, down 7.4% month-on-month [32] - The pig-to-feed ratio was 4.18, down 0.65 month-on-month [32] Feed and Animal Health - In March, the prices of aquatic products fluctuated, with a notable increase in feed prices due to rising raw material costs [6] - The report anticipates significant growth in the feed industry sales in March, driven by the upcoming spring seedling investment [6] - Leading feed companies are expected to expand their market share domestically and internationally due to their cost advantages [6] Dairy Cattle - As of March 19, 2026, the price of fresh milk in major production areas was 3.03 CNY/kg, down 1.9% year-on-year [6] - The industry is entering a destocking phase, with supply and demand expected to balance in the future [6] Key Company Valuation and Financial Analysis - The report highlights several key companies with strong financial metrics, including: - Wen's Foodstuffs Group (300498.SZ) with a target price of 18.55 CNY and a PE ratio of 21.41 for 2025E [7] - Muyuan Foods (002714.SZ) with a target price of 63.40 CNY and a PE ratio of 16.20 for 2025E [7] - Lihua Agricultural (300761.SZ) with a target price of 28.72 CNY and a PE ratio of 29.67 for 2025E [7]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而 產生或因依賴該等內容而引致的任何損失承擔任何責任。 MUYUAN FOODS CO., LTD. 牧 原 食 品 股 份 有 限 公 司 （於中華人民共和國註冊成立的股份有限公司） （股份代號: 2714） 海外監管公告 本公告乃根據香港聯合交易所有限公司證券上市規則第13.10B條刊發。 根據中華人民共和國的有關法例規定，牧原食品股份有限公司（「本公司」）在巨 潮資訊網（www.cninfo.com.cn）刊發了以下公告。茲載列如下，僅供參閱。 中國，河南省南陽市，2026年3月27日 於本公告日期，本公司董事會成員包括：(i)執行董事秦英林先生、曹治年先生及楊瑞華 女士；(ii)非執行董事錢瑛女士及蘇黨林先生；及(iii)獨立非執行董事周明笙先生、閻磊 先生及馮根福先生。 牧原食品股份有限公司 关于董事会对独立董事独立性自查情况的专项报告 根据证监会《上市公司独立董事管理办法》《深圳证券交易所股票上市规则》 《深圳证券交易所上市公司自律监管指引第 1 ...

Investment Rating - The report suggests a neutral investment rating for the agricultural sector, indicating that the expected changes in the industry will be relatively stable compared to the broader market [68]. Core Insights - The agricultural sector index has underperformed compared to the Shanghai Composite Index, with a weekly decline of 2.94% [13]. - The pig farming industry is experiencing a continued decline in prices, with an expected increase in supply in April, leading to further price drops in the short term [3][22]. - Poultry farming is facing pressure on prices, particularly for white chickens, but there is potential for recovery if consumer demand improves [4][36]. - The beef market is expected to see price increases as it enters the consumption peak season, while dairy cow inventory is decreasing [5][42]. - The planting industry is stabilizing, with potential improvements if there are significant reductions in grain production due to external uncertainties [6][46]. - Feed prices have stabilized, and the aquaculture sector is showing signs of improvement in pricing [56]. Summary by Sections 1. Market Review - The agricultural sector index closed at 2842.41 points, down 2.94% week-on-week, underperforming the Shanghai Composite Index [13]. 2. Key Data Tracking 2.1 Pig Farming - As of March 27, the national pig price was 9.39 yuan/kg, down 5.15% week-on-week, with a significant loss in farming profits [21][22]. - The average weight of pigs at slaughter was 128.71 kg, indicating a potential for further price declines due to supply pressures [22]. 2.2 Poultry Farming - The average price for white feather chickens was 7.11 yuan/kg, down 3.00% week-on-week, while profits for parent stock chickens were slightly positive [36]. - The overall profitability in poultry farming remains under pressure, but there is potential for recovery with improved consumer demand [4][36]. 2.3 Livestock - The price of live cattle in Shandong was 27.03 yuan/kg, stable week-on-week, with a year-on-year increase of 12.25% [5][42]. - The beef market is expected to strengthen as it enters the peak consumption season, while dairy cow inventory is decreasing [5][42]. 2.4 Planting Industry - Domestic corn prices were 2334.29 yuan/ton, showing slight increases, while uncertainties in global weather may affect crop yields [45][46]. - The planting sector is stabilizing, with potential improvements if significant reductions in grain production occur [6][46]. 2.5 Feed & Aquaculture - Feed prices for fattening pigs and poultry have remained stable, while aquaculture prices are showing upward trends [56].

Investment Rating - The report assigns an "Accumulate" rating for the agricultural sector [6] Core Insights - The report highlights a continued optimistic outlook for agricultural products due to ongoing international conflicts, which are expected to drive prices upward [3] - The domestic pet market is experiencing rapid growth, with companies like Zhongchong Co. and Guai Bao Pet at low valuation levels, presenting investment opportunities [4] - The livestock sector is facing challenges with high weights and low prices, particularly in the pig market, where prices are expected to remain depressed [5] Summary by Sections Planting Sector - The report maintains a positive outlook for agricultural prices, particularly for major crops like soybeans, corn, and wheat, with current prices at 4,277 CNY/ton for soybeans, 2,453 CNY/ton for corn, and 2,588 CNY/ton for wheat [3] - The ongoing conflict in the Middle East is expected to increase demand for vegetable oil raw materials due to rising energy prices [3] - Recommended companies include Kangnong Seed Industry, which leads in corn seed variety iteration, and Nopson, which is expected to benefit from blueberry sales growth [3] Livestock Sector - The average weight of pigs at market is currently 128.71 kg, with prices continuing to decline, leading to a negative outlook for the sector [5] - The report suggests that rising feed costs due to higher corn prices will further pressure the livestock industry [5] - Recommended stocks in this sector include Muyuan Foods, Wens Foodstuff Group, and New Hope Liuhe [5] Pet Sector - The domestic pet market is growing rapidly, with major pet exhibitions in cities like Beijing and Shenzhen showcasing the industry's vitality [4] - Companies with overseas production capacity and increasing orders are expected to perform well despite currency fluctuations [4] - Key investment opportunities highlighted include Guai Bao Pet and Zhongchong Co., both of which are at low valuation levels [4] Key Company Profit Forecasts and Valuations - The report provides earnings per share (EPS) and price-to-earnings (PE) ratios for several companies, with recommendations to accumulate shares in companies like Muyuan Foods (PE 9.40), Wens Foodstuff Group (PE 13.11), and Kangnong Seed Industry (PE 11.05) [36]