Core Viewpoint - The FTSE China A50 Index components showed a decline across various sectors, with banking stocks mostly in the red and significant drops in insurance, liquor, and semiconductor sectors [1][6]. Banking Sector - Most banking stocks experienced a decline, contributing to the overall negative performance of the index [1]. Insurance Sector - Major insurance companies like China Pacific Insurance, Ping An Insurance, and China Life Insurance saw market capitalizations of 390.94 billion, 359.61 billion, and 1,045.27 billion respectively, with declines of -0.26 (-0.69%), -0.18 (-0.31%), and -0.16 (-1.78%) [3]. Liquor Industry - Key players in the liquor industry, including Kweichow Moutai, Shanxi Fenjiu, and Wuliangye, reported market capitalizations of 1,778.15 billion, 217.75 billion, and 464.59 billion respectively, with price changes of -4.50 (-0.32%), -1.16 (-0.65%), and -0.04 (-0.03%) [3]. Semiconductor Sector - Semiconductor companies such as Northern Huachuang, Cambricon Technologies, and Hygon reported market capitalizations of 233.53 billion, 249.53 billion, and 326.76 billion respectively, with price changes of -1.01 (-0.23%), -12.76 (-2.09%), and -1.17 (-0.83%) [3]. Automotive Sector - In the automotive sector, BYD and Great Wall Motors had market capitalizations of 282.79 billion and 1,834.50 billion respectively, with price changes of -3.57 (-1.06%) and +0.07 (+0.33%) [3]. Energy Sector - Companies in the energy sector, including China Shipping and Sinopec, reported market capitalizations of 686.25 billion and 1,584.96 billion respectively, with price changes of +0.03 (+0.20%) and -0.05 (-0.88%) [3]. Coal Industry - In the coal industry, China Shenhua and Shaanxi Coal and Chemical Industry had market capitalizations of 186.24 billion and 795.34 billion respectively, with price changes of -1.98 (-0.78%) and -0.01 (-0.02%) [3]. Power Industry - The power sector, represented by companies like Yangtze Power and China Nuclear Power, had market capitalizations of 192.31 billion and 745.30 billion respectively, with price changes of -0.65 (-2.09%) and -0.03 (-0.32%) [4]. Internet Services - Internet service companies such as Dongfang Caifu reported a market capitalization of 371.40 billion, with a price change of +0.37 (+1.60%) [4]. Food and Beverage Sector - In the food and beverage sector, companies like Citic Securities and Haitian Flavoring reported market capitalizations of 414.23 billion and 342.55 billion respectively, with price changes of +0.38 (+1.38%) and -0.10 (-0.26%) [4]. Consumer Electronics - Companies in the consumer electronics sector, including Industrial Fulian and Luxshare Precision, had market capitalizations of 426.17 billion and 246.39 billion respectively, with price changes of +0.42 (+2.00%) and -0.35 (-0.67%) [4]. Home Appliances - In the home appliance sector, Gree Electric and Haier Smart Home reported market capitalizations of 255.76 billion and 234.57 billion respectively, with price changes of +0.16 (+0.35%) and +0.28 (+1.13%) [4]. Logistics Sector - The logistics sector, represented by companies like SF Holding, had a market capitalization of 276.36 billion, with a price change of +0.60 (+1.13%) [4]. Construction Industry - In the construction industry, China State Construction and XD China Communications reported market capitalizations of 240.07 billion and 527.30 billion respectively, with price changes of -0.02 (-0.34%) and +0.05 (+0.95%) [4].

Core Viewpoint - The company is strategically positioning itself for international expansion through its Hong Kong IPO, which is seen as a critical step for future growth and credibility in the global market [3][9]. Group 1: IPO and International Strategy - The company submitted its H-share listing application to the Hong Kong Stock Exchange on May 27, 2025, marking a significant move towards its internationalization strategy [3]. - The IPO aims to enhance the company's credibility among global investors and support its overseas business expansion, particularly in Southeast Asia, with Vietnam identified as a key market [3]. - Funds raised from the IPO will be allocated to global supply chain expansion, breeding and smart farming R&D, and working capital replenishment [3]. Group 2: Business Development and R&D - The company’s subsidiary, Muyu Anliang, is in trial production, achieving 80% of its designed capacity, focusing on synthetic biology technology, particularly amino acid applications [4]. - The strategic goal of this initiative is to reduce reliance on soybean protein, thereby safeguarding national food security and mitigating risks associated with international soybean price fluctuations [4]. Group 3: Industry Outlook and Strategic Adjustments - The company perceives a stable future for the pig farming industry, supported by government policies aimed at stabilizing production capacity and pig prices [5]. - Since 2021, the company has shifted its focus from rapid growth to high-quality development, emphasizing cost control and technology output [5]. Group 4: Slaughtering Business and Synergy - The company’s slaughtering business, initiated in 2019, currently has a capacity of 29 million heads per year, with plans to enhance sales channels and optimize product structure [6]. - There is a strong emphasis on the synergy between slaughtering and breeding operations, allowing for better market demand understanding and value maximization [6]. Group 5: Cost Control and Financial Management - Since 2025, the company has seen a monthly decrease in pig farming costs, with May's cost at 12.2 yuan/kg, aiming for an average of 12 yuan/kg for the year [7]. - Future cost optimization will focus on disease prevention, breeding system improvements, feed cost reduction through synthetic biology, and enhanced smart equipment application [7]. - The company has set a target to reduce debt by 10 billion yuan, with a long-term goal of lowering the debt-to-asset ratio to over 40% [8]. Group 6: Industry Transformation and Social Responsibility - The company aims to elevate the pig farming industry’s image through technological innovation and model upgrades, making it a respected profession [9]. - The vision is to make pig farming less labor-intensive and more profitable, integrating technology and management to enhance production efficiency [9].

Market Overview - The FTSE China A50 Index component stocks showed a mixed performance with bank stocks rising in the afternoon while insurance stocks continued to decline [1][5]. Banking Sector - Bank stocks generally performed well, contributing to the positive movement in the FTSE China A50 Index [1]. Insurance Sector - Major insurance companies such as China Pacific Insurance, China Life Insurance, and Ping An Insurance experienced declines in their stock prices, with China Pacific Insurance down by 1.05%, China Life down by 0.52%, and Ping An down by 1.42% [3]. Alcohol Industry - In the alcohol sector, Kweichow Moutai saw a slight increase of 0.48%, while Shanxi Fenjiu and Wuliangye experienced declines of 0.37% and 0.83% respectively [3]. Semiconductor Industry - The semiconductor companies showed varied results, with North Huachuang increasing by 2.72%, while Cambrian and Haiguang Information saw minor declines [3]. Automotive Sector - In the automotive sector, BYD's stock fell by 3.39%, while Great Wall Motors and China Railway High-speed experienced minor declines and increases respectively [3]. Shipping and Oil Industry - China COSCO Shipping saw a slight increase of 0.53%, while Sinopec and PetroChina experienced minor declines [3]. Coal and Battery Industry - China Shenhua's stock decreased by 0.27%, while Ningde Times (CATL) saw a decline of 0.83% [3]. Power and Financial Sector - Longyuan Power and China Nuclear Power had mixed results, with Longyuan Power increasing by 0.74% and China Nuclear Power declining by 3.63% [4]. Food and Beverage Sector - The food and beverage sector showed declines, with companies like Haitian Flavor Industry and Zhongtai Securities experiencing notable decreases [4]. Consumer Electronics and Pharmaceutical Sector - The consumer electronics sector saw a slight increase in stocks like Luxshare Precision, while pharmaceutical companies like Hengrui Medicine experienced a decline [4]. Logistics and Medical Equipment - The logistics sector, represented by SF Holding, saw a minor decline, while medical equipment company Mindray Medical also experienced a decrease [4]. Non-ferrous Metals and Communication Services - Zijin Mining and China Communications Construction had mixed performances, with Zijin Mining showing a slight decline [4].

Group 1 - The core strategy of the company is the "three-horsepower" approach, focusing on cost optimization, IPO progress, and international expansion through technology output [1] - The company has successfully reduced its breeding cost to a new low of 12.2 yuan/kg, showcasing its resilience amid industry fluctuations [1][3] - The Hong Kong IPO application marks a significant step in the company's internationalization strategy, aiming to pave the way for overseas business over the next five to ten years [2] Group 2 - The company has established a complete service chain in Vietnam, addressing local technical gaps in breeding and disease prevention [2] - The company aims to reduce its debt by 10 billion yuan, reflecting a shift from rapid expansion to high-quality development [4] - The integration of slaughtering and meat processing operations is expected to enhance profitability, with a focus on optimizing product structure and expanding channels [4] Group 3 - The company is leveraging technological advancements in health management, breeding optimization, and smart applications to achieve cost control [3] - The goal for the annual cost is set at 12 yuan/kg, with a target to approach 11 yuan/kg by year-end, indicating a commitment to continuous improvement [3] - The vision of "decent pig farming" aims to reshape societal perceptions of the industry through technological innovation and improved labor conditions [4]

Core Points - The China Securities Index (CSI) Huaxia AH Economic Growth Index reported a value of 6611.27 points, showing a monthly increase of 0.34%, a quarterly decrease of 3.58%, and a year-to-date increase of 6.87% [1] Group 1: Index Composition - The CSI Huaxia AH Economic Growth Index selects financially sound growth-leading companies from both mainland and Hong Kong markets to reflect the performance of companies benefiting from economic structural changes [1] - The index is based on a starting point of 1000.0 points as of December 31, 2004 [1] Group 2: Top Holdings - The top ten holdings of the index include Tencent Holdings (9.74%), Alibaba-W (9.69%), Meituan-W (4.05%), Yum China (3.36%), Jiangsu Bank (3.31%), Muyuan Foods (2.39%), Wens Foodstuff Group (2.31%), Jitu Express-W (2.17%), China Telecom (2.0%), and Kingsoft (1.98%) [1] Group 3: Market Distribution - The market distribution of the index holdings shows that the Hong Kong Stock Exchange accounts for 52.26%, the Shanghai Stock Exchange for 31.63%, the Shenzhen Stock Exchange for 16.12%, and the Beijing Stock Exchange for 0.00% [1] Group 4: Industry Breakdown - The industry composition of the index includes Consumer Discretionary (20.41%), Industrials (19.36%), Communication Services (16.20%), Information Technology (11.50%), Financials (8.89%), Consumer Staples (8.56%), Materials (5.81%), Health Care (4.67%), Utilities (1.76%), Energy (1.67%), and Real Estate (1.18%) [2] Group 5: Sample Adjustment - The index samples are adjusted biannually, with adjustments occurring on the next trading day after the second Friday of June and December [2] - Weight factors are adjusted in accordance with sample changes, and temporary adjustments may occur under special circumstances [2]

Core Insights - The report suggests focusing on agricultural investment opportunities driven by price increases in key products such as beef and grains, policy reforms in the supply side, and recovery in downstream demand [5] - The beef industry is expected to see a price upturn after a period of losses, with a projected industry capacity reduction exceeding 10% [5][12] - The pig farming sector is anticipated to experience a slight decline in supply in 2025, with a focus on high-quality leading enterprises due to supply-side policies [5][45] - Poultry farming is facing supply disruptions, but demand recovery is expected to improve the market [5][87] Livestock Industry - Global beef prices have started to rise again after two years of decline, with May prices reaching $6.62 per kg, a 13% year-on-year increase [12] - China's beef consumption is projected to grow, with a total consumption of 11.52 million tons in 2024, up 3.84% year-on-year [22] - The domestic beef supply is expected to decline significantly due to a drop in cattle inventory, with a forecasted reduction of over 10% [22][24] Dairy Industry - China's raw milk prices have been declining since mid-2021, with the average price at 3.04 yuan per kg as of June 13, 2024, down 7.88% year-on-year [33] - The dairy industry is experiencing a significant capacity reduction, with over 90% of the industry facing losses [33] - A potential recovery in milk prices is anticipated in the second half of 2025 as supply-side capacity continues to decrease [38] Pig Farming - The pig supply is expected to increase slightly in 2025, with a projected output of 703 million pigs in 2024, down 3.3% year-on-year [45] - The average price of pigs is forecasted to be around 14.5 yuan per kg for the year, reflecting a decrease in supply pressure [45][54] - The industry is experiencing a recovery in profitability, with average profits for self-breeding and self-raising operations improving significantly [54][67] Poultry Farming - The yellow-feathered chicken market is stabilizing, with a projected output of 3.34 billion birds in 2024, down 7.18% year-on-year [92] - The white-feathered chicken supply remains ample, with prices stable as the market awaits demand recovery [98] - Long-term demand for white-feathered chicken is expected to rise, supported by improved efficiency and domestic breed replacement [102] Feed and Grain - The total feed volume is expected to increase due to rising pig inventories and improved profitability in livestock farming [107] - Grain prices are projected to recover from recent lows, influenced by external factors such as weather and international relations [117] - The report emphasizes the importance of grain security and the potential impact of trade relations on domestic agricultural costs [117]

Core Viewpoint - Muyuan Foods (002714.SZ) is steadily advancing its "A+H" listing plan, with the H-share IPO seen as a crucial step in its internationalization strategy and future overseas business development [2][3]. Group 1: Internationalization Strategy - Muyuan Foods has submitted its H-share listing application to the China Securities Regulatory Commission (CSRC) three weeks after filing its prospectus [2]. - The company aims to leverage its technology and management expertise in Southeast Asia, starting with a subsidiary in Vietnam and a strategic partnership with local pig farming company BAF in 2024 [3]. - The Southeast Asian market presents significant opportunities for investment in equipment and research, particularly in disease prevention and control [4]. Group 2: Cost Management and Efficiency - The company targets an average breeding cost of 12 RMB/kg by 2025, with current costs having decreased to approximately 12.2 RMB/kg as of May [8]. - Muyuan Foods acknowledges a gap in health management investments compared to international standards, with its current PSY (Pigs Weaned per Sow per Year) at around 28, while the international average is 34 [9]. - The company plans to enhance cost efficiency through health management, breeding, nutrition, and smart applications, aiming for a "10 RMB era" in the near future [9]. Group 3: Financial Structure Optimization - As of the end of Q1 2025, Muyuan Foods' capital debt ratio stood at 59.2%, showing a slight increase from the end of the previous year [11]. - The company maintains its goal of reducing total debt by 10 billion RMB, addressing the high proportion of short-term debt due to the nature of its assets [12]. - Future capital expenditures are expected to decline, with a long-term target debt ratio of over 40% [12].

Group 1 - The core viewpoint of the articles highlights the importance of bond financing for technology innovation companies in Henan Province, aiming to enhance their funding channels and accelerate technological advancements [1][2] - The training session organized by the Henan Securities Regulatory Bureau and the Henan Listed Companies Association focused on the advantages and policies related to technology innovation bonds, providing insights into the bond market's role in supporting listed companies [1] - The issuance of the first technology innovation renewable corporate bond by Shennong Co., with a coupon rate of 2.59% and a subscription multiple of 3.69, demonstrates the growing interest and confidence in utilizing bond financing for innovation [2] Group 2 - Henan Province has cultivated a number of specialized and innovative enterprises that are crucial for the industrial transformation and upgrading of the region, although some still face challenges related to long financing cycles and high capital demands [2] - The technology innovation corporate bonds are seen as a vital tool for directing funds towards early-stage, small, long-term, and hard technology investments, injecting more vitality into the production capacity of Henan's listed companies [2] - The Henan Securities Regulatory Bureau plans to continue optimizing the regulatory environment and policy support to foster a healthy development ecosystem for corporate bond financing, thereby contributing to high-quality economic growth in the province [2]

Investment Rating - The report maintains an "Outperform" rating for the agricultural products sector [1][5][4]. Core Views - The report is optimistic about the reversal of the beef cycle and recommends investments in leading companies in the livestock sector, particularly in beef and raw milk, which are expected to experience a positive resonance in 2025 [3][4]. - The pet industry is highlighted as a growth sector benefiting from demographic changes, while the feed sector, particularly Haida Group, is expected to gain from the recovery in aquaculture [3][4]. - The report notes that the pig industry shows insufficient expansion willingness, but the overall market conditions are expected to remain stable through 2025, with a focus on undervalued leading companies [3][4]. - Poultry production is expected to maintain low volatility, with white chicken consumption gradually increasing and yellow chicken likely to benefit from improved domestic demand [3][4]. Summary by Sections Livestock - **Pork**: The average price of live pigs is 14.16 CNY/kg, with a week-on-week increase of 1.22%. The price of 7kg piglets is approximately 446 CNY/head, down 4.98% week-on-week [1][13]. - **Beef**: The domestic beef market price is 59.35 CNY/kg, showing a slight decrease of 0.05% week-on-week but a significant increase of 27.63% year-on-year [1][15]. - **Poultry**: The price of broiler chicks is 1.23 CNY/bird, down 43% week-on-week, while the price of eggs in major production areas is 2.90 CNY/jin, up 9.85% week-on-week but down 35.27% year-on-year [1][14]. Feed and Raw Materials - **Soybean Meal**: The spot price is 3024 CNY/ton, with a week-on-week increase of 1%. The report indicates strong support for supply and demand in the medium to long term [2][3]. - **Corn**: The domestic corn spot price is 2415 CNY/ton, with a week-on-week increase of 0.37% and a year-on-year increase of 0.12% [2][3]. - **Sugar**: The price in Guangxi is 5980 CNY/ton, down 0.17% week-on-week, with attention on import rhythms and crude oil price fluctuations [2][3]. Investment Recommendations - Recommended stocks include: - **Beef**: Guangming Meat Industry - **Pets**: Guibao Pet, Zhongchong Co., and Ruipu Biological - **Feed**: Haida Group - **Pork**: Dekang Agriculture, Muyuan Foods, Huazhong Agriculture, and others - **Poultry**: Lihua Co., Yisheng Co., and Shengnong Development [3][4].

Group 1: Pig Farming Industry - The pig prices are expected to rebound unexpectedly in the second half of 2025 due to easing supply pressure and seasonal consumption peaks, with recommendations to focus on leading companies like Muyuan and Wens [1][2] - The average price of live pigs from the beginning of 2025 to June 16 is approximately 14.81 yuan/kg, showing a year-on-year decrease of about 4% [12][14] - Major pig farming companies have seen a reduction in breeding costs, with Muyuan's cost dropping to around 12.2 yuan/kg, indicating improved profitability potential [12][14] Group 2: Aquaculture and Feed Industry - The aquaculture feed industry is expected to benefit from rising fish prices, with a notable increase in grass carp prices by approximately 10% since March 2024 [37][39] - Haida Group is highlighted for its strong competitive advantages and potential for growth in both domestic and overseas feed markets, with a projected compound annual growth rate (CAGR) of about 20% for overseas feed sales from 2025 to 2030 [38][39] - The domestic feed industry is anticipated to recover due to improved profitability in the pig farming sector and a rebound in aquaculture [37][38] Group 3: Pet Industry - The pet industry is experiencing significant growth driven by a younger demographic of pet owners, with 90s and 00s generation pet owners accounting for over 66.8% of the market by 2024 [45][47] - The average annual spending on pets in China is currently at 2419 yuan, indicating room for growth compared to international standards [46][47] - The market share of domestic pet brands is increasing, with the top five domestic brands reaching a combined market share of 13.9% in 2024, while foreign brands are declining [54][55] Group 4: Snack Retail Industry - The snack retail industry is transitioning towards a dual oligopoly structure, with leading brands like Mingming and Wancheng expected to capture significant market shares of 34% and 30% respectively by May 2025 [4][39] - The industry has substantial room for expansion, with an estimated ceiling of 67,000 stores, indicating a potential for 1.4 times current capacity [4][39] - The profitability of leading snack retail companies is projected to improve due to economies of scale and enhanced bargaining power with suppliers [4][39]