Core Insights - The feed sector experienced a rise of 0.79% on October 29, with LuSi Co. leading the gains [1] - The Shanghai Composite Index closed at 4016.33, up 0.7%, while the Shenzhen Component Index closed at 13691.38, up 1.95% [1] Feed Sector Performance - LuSi Co. (code: 920419) closed at 18.22, up 3.76% with a trading volume of 26,200 lots and a transaction value of 46.57 million [1] - AoNong Bio (code: 603363) closed at 5.21, up 2.96% with a trading volume of 787,300 lots and a transaction value of 408 million [1] - ZhiYang Co. (code: 002696) closed at 6.80, up 1.95% with a trading volume of 203,600 lots and a transaction value of 13.8 million [1] - Other notable performers include ZhongChong Co. (code: 002891) at 57.21, up 1.51%, and HaiDa Group (code: 002311) at 57.38, up 1.22% [1] Capital Flow Analysis - The feed sector saw a net inflow of 55.01 million from main funds, while retail funds experienced a net outflow of 20.66 million [2] - Main funds showed a significant net outflow in AoNong Bio of 37.28 million, while HaiDa Group had a net inflow of 36.70 million [3] - The overall trend indicates a mixed sentiment among retail and institutional investors within the feed sector [2][3]

Core Viewpoint - Zhongchong Co., Ltd. has experienced a stock price increase of 9.18% over the past four days, indicating strong market performance and investor interest [1][2]. Group 1: Company Overview - Zhongchong Co., Ltd. is located in Yantai, Shandong Province, and was established on January 18, 2002, with its stock listed on August 21, 2017 [1]. - The company primarily engages in the research, production, and sales of pet food for dogs and cats, with revenue composition as follows: pet snacks 62.89%, pet staple food 32.21%, and pet supplies and others 4.90% [1]. Group 2: Stock Performance - As of the latest report, Zhongchong's stock price is 57.21 CNY per share, with a trading volume of 426 million CNY and a turnover rate of 2.46%, resulting in a total market capitalization of 17.413 billion CNY [1]. - The stock has seen a continuous rise for four days, accumulating a total increase of 9.18% during this period [1]. Group 3: Fund Holdings - The Tongtai Fund has a significant holding in Zhongchong, with its Tongtai Huize Mixed A Fund (008050) increasing its position by 23,100 shares in the third quarter, now holding a total of 31,200 shares, which constitutes 9.71% of the fund's net value [2]. - The fund has realized a floating profit of approximately 26,500 CNY today and 150,100 CNY during the four-day increase [2].

Core Viewpoint - Zhongchong Co., Ltd. has experienced a stock price increase of 9.18% over the past four days, indicating positive market sentiment towards the company [1]. Group 1: Company Overview - Zhongchong Co., Ltd. is located in Yantai, Shandong Province, and was established on January 18, 2002, with its listing date on August 21, 2017 [1]. - The company primarily engages in the research, production, and sales of pet food for dogs and cats [1]. - The revenue composition of the company includes pet snacks at 62.89%, pet staple food at 32.21%, and pet supplies and others at 4.90% [1]. Group 2: Stock Performance - As of the report, Zhongchong's stock price is 57.21 CNY per share, with a trading volume of 426 million CNY and a turnover rate of 2.46%, resulting in a total market capitalization of 17.413 billion CNY [1]. - The stock has seen a continuous rise for four days, with a total increase of 9.18% during this period [1]. Group 3: Fund Holdings - According to data, one fund under Bosera Fund has a significant holding in Zhongchong Co., Ltd. The Bosera Steady Selection Mixed Fund (FOF) A (016368) holds 1,100 shares, accounting for 0.1% of the fund's net value, making it the second-largest holding [2]. - The fund has generated a floating profit of approximately 935 CNY today and 5,291 CNY during the four-day increase [2]. - The Bosera Steady Selection Mixed Fund (FOF) A was established on September 14, 2022, with a current scale of 21.5501 million CNY and a year-to-date return of 5.27% [2].

Core Insights - The report indicates that the swine industry is entering a de-stocking cycle, while the beef cattle sector continues to experience an upward trend in demand and pricing [2][3] Group 1: Swine Industry - The swine sector is witnessing accelerated de-stocking driven by policy and market dynamics, presenting a good opportunity for investment [3][43] - As of Q3 2025, China's pig output reached 530 million heads, a year-on-year increase of 1.8%, with pork production at 43.68 million tons, up 3.0% year-on-year [10][13] - The average price of pigs in October 2025 dropped to 10.84 yuan/kg, a significant decline of 40.28% year-on-year, marking a new low for the year [10][13] Group 2: Beef Cattle Industry - The beef cattle supply is contracting, with the cycle of demand expected to continue its upward trajectory until 2027 [4][49] - In Q3 2025, the number of beef cattle in China was 99.32 million heads, a decrease of 2.4% year-on-year, while beef production reached 5.5 million tons, up 3.3% year-on-year [49][51] - The average price of beef in September 2025 was 70.52 yuan/kg, reflecting a year-on-year increase of 5.36% [59] Group 3: Poultry Industry - The white chicken sector is experiencing a gradual increase in demand, with the output of white feathered chickens expected to rise to 90.3 million heads in 2024, a year-on-year increase of 2.2% [94][98] - The rolling update of grandparent stock for white feathered chickens is projected to decline, which will support an increase in chicken prices in 2026 [100] Group 4: Seed Industry - Grain prices are expected to stabilize and rise due to various factors, including U.S.-China tariff disturbances and climate impacts [6] - The commercialization of genetically modified crops is anticipated to accelerate, supported by an increase in the number of approved varieties [6] Group 5: Pet Industry - The pet food export volume in China increased by 7.55% year-on-year from January to September 2025, indicating strong performance from leading companies [7] - Domestic pet consumption is expected to grow due to increasing companionship demand and emotional value associated with pet ownership [7]

Market Overview - The feed sector experienced a decline of 1.0% on October 28, with Lu Si Co. leading the drop [1] - The Shanghai Composite Index closed at 3988.22, down 0.22%, while the Shenzhen Component Index closed at 13430.1, down 0.44% [1] Individual Stock Performance - Zhongchong Co. (002891) saw a closing price of 56.36, with an increase of 3.49% and a trading volume of 87,800 shares, totaling 492 million yuan [1] - Guibao Pet (301498) closed at 72.62, up 3.04%, with a trading volume of 64,800 shares and a total transaction value of 467 million yuan [1] - Lu Si Co. (920419) led the decline with a closing price of 17.56, down 2.71%, and a trading volume of 17,200 shares, amounting to 30.36 million yuan [2] - Haida Group (002311) closed at 56.69, down 2.56%, with a trading volume of 106,400 shares and a total transaction value of 604 million yuan [2] Capital Flow Analysis - The feed sector experienced a net outflow of 101 million yuan from institutional investors, while retail investors saw a net inflow of 80.56 million yuan [2] - The main capital inflow and outflow for selected stocks showed varied trends, with Zhongchong Co. having a net inflow of 23.57 million yuan from institutional investors [3] - Haida Group had a net inflow of 15.68 million yuan from institutional investors, while experiencing a net outflow of 2.16 million yuan from retail investors [3]

Market Overview - The feed sector increased by 1.16% on October 27, with Jin Xin Nong leading the gains [1] - The Shanghai Composite Index closed at 3996.94, up 1.18%, while the Shenzhen Component Index closed at 13489.4, up 1.51% [1] Individual Stock Performance - Jin Xin Nong (002548) closed at 4.80, up 5.49% with a trading volume of 369,000 shares and a turnover of 173 million yuan [1] - Tian Kang Biological (002100) closed at 7.89, up 5.34% with a trading volume of 506,600 shares [1] - Tian Ma Technology (603668) closed at 14.06, up 4.15% with a trading volume of 218,000 shares and a turnover of 302 million yuan [1] - Ao Nong Biological (603363) closed at 5.16, up 4.03% with a trading volume of 1,878,500 shares and a turnover of 451 million yuan [1] - Other notable stocks include Bangtai Technology (603151) at 26.26, up 1.70%, and Hai Da Group (002311) at 58.18, up 0.97% [1] Capital Flow Analysis - The feed sector saw a net inflow of 132 million yuan from institutional investors, while retail investors experienced a net outflow of 148 million yuan [2] - The main capital inflow and outflow for key stocks are as follows: - Ao Nong Biological: Net outflow of 40.5 million yuan from main capital [3] - Tian Ma Technology: Net inflow of 34.8 million yuan from main capital [3] - Tian Kang Biological: Net inflow of 32.8 million yuan from main capital [3] - Hai Da Group: Net inflow of 30.4 million yuan from main capital [3]

Investment Rating - The report maintains a "Positive" investment rating for the agriculture industry [5] Core Viewpoints - The pig farming sector is expected to benefit from recent policies and market forces that promote capacity reduction, leading to long-term performance improvements [3][36] - The current trend in grain prices is upward, indicating a favorable fundamental outlook for planting and seed industries, highlighting significant investment opportunities [3][36] - The pet food sector is experiencing growth, with increasing recognition of domestic brands and continuous market expansion [3][36] Summary by Relevant Sections Pig Farming - The current pig price is weak, with the average price for external three yuan pigs at 11.82 yuan/kg, a week-on-week increase of 5.82% [10][44] - The industry is entering a phase of capacity reduction, with pig prices expected to stabilize and potentially rise in the long term due to policy support [7][10] Poultry - White feather broiler prices have shown slight increases, with the current price at 6.88 yuan/kg, reflecting a week-on-week rise of 0.15% [13][44] - The yellow feather broiler prices continue to remain strong, indicating a stable market environment [21][44] Feed Sector - Corn prices have decreased slightly, while soybean meal and wheat prices have increased, indicating a mixed market for feed ingredients [23][44] - The average price of pig feed is 3.37 yuan/kg, showing a slight decrease of 0.30% [44] Bulk Agricultural Products - Natural rubber prices have risen, with the current price at 15,335 yuan/ton, a week-on-week increase of 4.36% [30][44] - The report indicates that the down cycle for bulk agricultural products is nearing its end, with signs of recovery in certain segments [30][44]

Investment Rating - The investment rating for the agriculture, forestry, animal husbandry, and fishery industry is "Positive" (maintained) [1] Core Views - The report indicates that the pig price has bottomed out and is rebounding, but the overall trend of breeding stock reduction remains unchanged. The short-term increase in breeding stock does not alter the long-term reduction trend [3][12] - The beef price continues to rise, but there is cautious replenishment in the industry due to differing expectations. The cattle inventory decreased in Q3 2025 [4][28] - The report highlights the acceleration of pig farming losses and the strengthening logic of domestic pet products, recommending several companies in the pig farming and feed sectors [5][31][34] Summary by Sections Weekly Observation - The proportion of breeding stock in actual sales increased to 2.09%, with a significant rise in breeding barn utilization rate to 44.8% [17][12] - As of October 24, 2025, the average price of pigs in China was 11.81 CNY/kg, with a week-on-week increase of 0.63 CNY/kg, but a year-on-year decrease of 5.74% [12][3] Weekly Perspective - The report notes that pig and piglet prices are in a loss situation, leading to an accelerated reduction in breeding stock. The report recommends companies such as Muyuan Foods, Wens Foodstuff, and others [5][31] - The feed sector is benefiting from the post-cycle of poultry and livestock, with strong overseas demand supporting prices. Recommended companies include Haida Group and New Hope [31] Market Performance (October 20-24) - The agriculture sector underperformed the market by 4.24 percentage points, with the Shanghai Composite Index rising by 2.88% while the agriculture index fell by 1.36% [35][37] - The report highlights that the fishery sector led the gains among sub-sectors [35] Price Tracking (October 20-24) - The average price of pigs was 11.82 CNY/kg, with a week-on-week increase of 0.65 CNY/kg. The average price of piglets was 17.66 CNY/kg, down by 0.33 CNY/kg [43][44] - The average wholesale price of beef was 66.21 CNY/kg, with a slight increase of 0.21 CNY/kg [48]

Core Insights - The rise of fresh pet food reflects the emotional needs of modern young pet owners who prioritize high-quality ingredients and nutritional balance for their pets [4][21] - The fresh pet food market is experiencing significant growth, with a notable increase in the adoption of fresh food among pet owners, particularly among the younger demographic [6][9] - The global fresh pet food market is projected to exceed $4.5 billion by 2025, with a compound annual growth rate (CAGR) of 21.3% [9] Market Trends - Over 50 million posts related to homemade pet food have been shared on social media platforms, indicating a strong consumer interest [3] - A survey revealed that 41.2% of pet owners born in the 1990s have incorporated fresh food into their feeding routines, a 27 percentage point increase from 2023 [6] - E-commerce platforms are seeing a surge in sales of fresh pet food products, with brands focusing on fresh food concepts ranking high in sales during major shopping events [6][9] Competitive Landscape - The fresh pet food market is dominated by a few key players, with the top five companies holding approximately 80% of the market share globally [9] - Major brands are actively entering the fresh pet food space through acquisitions and new product launches, indicating a competitive and rapidly evolving market [10][9] Consumer Preferences - Pet owners are increasingly aware of the health benefits of fresh food, associating it with improved pet health outcomes such as better coat quality and hydration [21][18] - Fresh pet food products can command a price premium of 30% to 40% over traditional dry food, reflecting consumer willingness to pay for perceived quality [21][23] Challenges and Opportunities - The lack of standardized definitions and regulations in the fresh pet food sector poses challenges for market stability and consumer safety [11][16] - Despite potential health risks, the demand for fresh pet food continues to grow, driven by a shift towards more scientific and personalized pet care [18][39] - Companies are exploring innovative production methods and supply chain strategies to enhance product freshness and reduce costs, which could lead to higher profit margins [23][28] Global Expansion Strategies - Chinese pet food brands are adopting flexible strategies to enter international markets, focusing on local partnerships and supply chain integration to overcome barriers [28][33] - The establishment of local production facilities is crucial for fresh pet food brands to ensure product quality and reduce logistics costs [35][39]

Core Insights - The feed sector experienced a slight decline of 0.17% on October 24, with Tianma Technology leading the losses [1] - The Shanghai Composite Index closed at 3950.31, up 0.71%, while the Shenzhen Component Index closed at 13289.18, up 2.02% [1] Feed Sector Performance - Zhongchong Co., Ltd. (002891) saw a closing price of 54.36, with an increase of 3.74% and a trading volume of 96,700 shares, amounting to a transaction value of 526 million yuan [1] - Other notable performers included Boen Group (001366) with a closing price of 13.03, up 0.77%, and Petty Co., Ltd. (300673) at 17.42, up 0.40% [1] - Tianma Technology (603668) led the declines with a closing price of 13.50, down 4.66%, and a trading volume of 222,500 shares, resulting in a transaction value of 309 million yuan [2] Capital Flow Analysis - The feed sector experienced a net outflow of 154 million yuan from institutional investors, while retail investors saw a net inflow of 97.74 million yuan [2] - The capital flow for individual stocks showed that Zhongchong Co., Ltd. had a net inflow of 12.28 million yuan from institutional investors, while it faced a net outflow of 36.39 million yuan from retail investors [3] - Other stocks like He Feng Co., Ltd. (60360a) and Boen Group (001366) also showed mixed capital flows, with varying degrees of net inflows and outflows from different investor categories [3]