Core Insights - The animal health sector experienced a decline of 0.24% on November 17, with Dayu Biological leading the drop [1] - The Shanghai Composite Index closed at 3972.03, down 0.46%, while the Shenzhen Component Index closed at 13202.0, down 0.11% [1] Stock Performance - Notable gainers included: - Qudongli (code: 920275) with a closing price of 10.68, up 5.12% [1] - *ST Lvkang (code: 002868) with a closing price of 42.57, up 5.01% [1] - Houfeng Holdings (code: 002141) with a closing price of 3.91, up 2.62% [1] - Major decliners included: - Dayu Biological (code: 920970) with a closing price of 8.70, down 3.87% [2] - Ruipu Biological (code: 300119) with a closing price of 20.61, down 2.92% [2] - Zhongmu Co., Ltd. (code: 600195) with a closing price of 7.94, down 1.98% [2] Capital Flow - The animal health sector saw a net outflow of 10.15 million yuan from institutional investors, while retail investors experienced a net outflow of 20.76 million yuan [2] - Conversely, speculative funds recorded a net inflow of 30.91 million yuan [2] Individual Stock Capital Flow - Notable capital flows included: - Biological Shares (code: 600201) with a net inflow of 12.08 million yuan from institutional investors [3] - Xianfeng Holdings (code: 002141) with a net inflow of 9.50 million yuan from institutional investors [3] - Ruipu Biological (code: 300119) with a net inflow of 1.05 million yuan from speculative funds [3] - Decliners in capital flow included: - *ST Lvkang (code: 002868) with a net outflow of 0.79 million yuan from institutional investors [3] - Hai Li Biological (code: 603718) with a net outflow of 2.82 million yuan from institutional investors [3]

Investment Rating - The report maintains an "Overweight" rating for the agriculture, forestry, animal husbandry, and fishery industry [48]. Core Viewpoints - The SW agriculture, forestry, animal husbandry, and fishery industry outperformed the CSI 300 index, rising by 4.87% from October 31, 2025, to November 13, 2025, exceeding the index by approximately 5.04 percentage points [11]. - All sub-sectors within the industry recorded positive returns during the same period, with notable increases in agricultural product processing (9.03%), fishery (8.12%), animal health (5.57%), planting (4.57%), breeding (2.94%), and feed (2.45%) [12]. - Over 90% of individual stocks in the industry achieved positive returns, indicating strong overall market performance [13]. - The industry valuation has rebounded, with the overall price-to-book (PB) ratio at approximately 2.94 times as of November 13, 2025, which is still relatively low compared to historical levels [17]. Industry Important Data - **Pig Farming**: The average price of external three yuan pigs decreased from 12.52 CNY/kg to 11.74 CNY/kg during the reporting period. The cost of corn and soybean meal showed fluctuations, with corn priced at 2260.39 CNY/ton and soybean meal at 3072 CNY/ton as of November 13, 2025 [21][23]. - **Profitability**: As of November 14, 2025, self-breeding pig farming reported a loss of 114.81 CNY per head, while purchasing piglets resulted in a loss of 205.64 CNY per head, indicating a decline in profitability [26]. - **Poultry Farming**: The average price of broiler chicks was 3.49 CNY per chick, slightly down from the previous week, while the average price of white feather broilers increased to 7.12 CNY/kg, with a loss of 0.95 CNY per bird [28][31]. Industry Important News - The Ministry of Agriculture and Rural Affairs emphasized accelerating the self-reliance and controllability of seed technology during a recent meeting, highlighting the importance of domestic seed sources and innovation in the seed industry [35]. Company Important News - Key companies to watch include Muyuan Foods (002714), Wens Foodstuff Group (300498), and others, which are positioned to benefit from industry trends and potential recovery in profitability [48][49].

Core Viewpoint - The animal health sector experienced a slight increase of 0.89% on November 14, with *ST Green Kang leading the gains, while the overall market indices, including the Shanghai Composite Index and Shenzhen Component Index, saw declines of 0.97% and 1.93% respectively [1] Group 1: Market Performance - The closing price of *ST Green Kang was 40.54, reflecting a rise of 5.00% with a trading volume of 204,000 shares and a transaction value of 8.27 million yuan [1] - Other notable performers included Ruipu Biology with a closing price of 21.23, up 1.87%, and Biological Shares at 11.93, up 1.62% [1] - The overall trading volume and transaction values for various companies in the animal health sector were significant, with Biological Shares recording a transaction value of 954 million yuan [1] Group 2: Capital Flow - The animal health sector saw a net outflow of 57.68 million yuan from institutional investors, while retail investors contributed a net inflow of 60.01 million yuan [2] - The capital flow data indicates that *ST Green Kang had a net inflow of 1.42 million yuan from institutional investors, despite a net outflow from retail investors [3] - Other companies like Biological Shares and Ruipu Biology experienced significant net outflows from institutional investors, indicating a shift in investment sentiment [3]

Core Viewpoint - As of November 10, 2025, the total number of shareholders for Reap Bio (300119) is expected to exceed 25,000 [1] Company Summary - Reap Bio has communicated to investors that the total number of shareholders will be over 25,000 by the specified date [1]

Core Insights - The animal health sector experienced a slight increase of 0.14% on November 12, with *ST Lvkang leading the gains [1] - The Shanghai Composite Index closed at 4000.14, down 0.07%, while the Shenzhen Component Index closed at 13240.62, down 0.36% [1] Stock Performance Summary - *ST Lvkang (002868) closed at 36.77, up 5.00% with a trading volume of 62,400 shares and a transaction value of 226 million [1] - Other notable performers included: - Qudongli (920275) at 10.76, up 3.86% [1] - Yongshun Biological (920729) at 10.15, up 1.81% [1] - Biological Shares (600201) at 10.76, up 1.22% [1] - Zhongmu Shares (600195) at 7.98, up 0.50% [1] Capital Flow Analysis - The animal health sector saw a net outflow of 35.94 million from institutional investors, while retail investors contributed a net inflow of 20.57 million [2] - The capital flow for individual stocks showed: - KQ Bio (688526) had a net inflow of 7.99 million from institutional investors [3] - Biological Shares (600201) had a net inflow of 6.25 million from institutional investors [3] - However, KQ Bio (688526) also experienced a net outflow of 16.05 million from retail investors [3]

Core Insights - The animal health sector experienced a 1.04% increase on November 11, with *ST Lvkang leading the gains [1] - The Shanghai Composite Index closed at 4002.76, down 0.39%, while the Shenzhen Component Index closed at 13289.0, down 1.03% [1] Stock Performance - *ST Lvkang (002868) closed at 35.02, up 5.01% with a trading volume of 1196 lots and a transaction value of 4.1884 million yuan [1] - Other notable performers included: - Qudongli (920275) at 10.36, up 4.65% [1] - Yongshun Biological (920729) at 9.97, up 2.15% [1] - Biological Shares (600201) at 10.63, up 1.24% [1] - Plai Ke (603566) at 14.42, up 1.19% [1] Capital Flow - The animal health sector saw a net outflow of 2.5437 million yuan from institutional investors and 7.7575 million yuan from speculative funds, while retail investors had a net inflow of 10.3012 million yuan [1] - Specific stock capital flows included: - Biological Shares (600201) with a net inflow of over 9.2092 million yuan from institutional investors [2] - *ST Lvkang (002868) had a net inflow of 1.1031 million yuan from retail investors [2] - Huayi Biological (603718) experienced a net outflow of 4.1338 million yuan from institutional investors [2]

Investment Rating - The report maintains a "positive" outlook on the agricultural, forestry, animal husbandry, and fishery sectors, with specific attention to the potential for value reassessment in leading pig farming companies [2][3]. Core Insights - The agricultural sector's net profit for the first three quarters of 2025 increased by 11% year-on-year, with five sub-sectors showing profit growth, including animal health (+96%) and agricultural processing (+50%) [11][12]. - The pig farming industry is experiencing significant challenges, with a notable decline in pig prices leading to widespread losses among companies, although some are still managing to maintain profitability due to cost advantages [3][19]. - The pet food sector continues to show strong domestic sales growth, while exports are negatively impacted by increased tariffs, highlighting a divergence in performance between domestic and international markets [3][6]. Summary by Sections 1. Agricultural Sector Overview - The agricultural sector's net profit for Q1-Q3 2025 reached CNY 369.4 billion, reflecting an 11% increase year-on-year, with most sub-sectors reporting profit growth [11][12]. - In Q3 2025, the sector's net profit dropped by 58% year-on-year, with significant declines in the feed and breeding industries [13][14]. 2. Key Sub-Sectors Performance 2.1 Pig Farming - The pig farming sector saw a 30% increase in the number of pigs slaughtered in the first three quarters of 2025, but Q3 prices fell sharply, leading to a 68.4% drop in net profit for the quarter [21][16]. - The average profit per pig for self-breeding operations was approximately CNY 60 per head, but this dropped to CNY 43 in Q3, indicating a significant decline in profitability [32][33]. 2.2 Chicken Farming - The white feather chicken segment is facing price declines, but downstream companies are seeing profit recovery due to improved cost structures [53][59]. - The yellow feather chicken segment is experiencing a significant downturn, with profits down by 75.2% year-on-year for the two listed companies in this category [3][59]. 2.3 Pet Food - The domestic pet food market remains robust, with a 17.7% increase in revenue for the first three quarters of 2025, while exports to the U.S. fell by 25.6% due to tariffs [3][6]. - Leading domestic brands are gaining market share, with significant growth in online sales [5][6]. 2.4 Animal Health - The animal health sector reported a 70.2% increase in net profit, driven by high livestock inventory levels and the introduction of new products [4][3].

Investment Rating - The report maintains a "Positive" outlook on the agricultural, forestry, animal husbandry, and fishery industry for the third quarter of 2025 [2] Core Insights - The agricultural, forestry, animal husbandry, and fishery sector's net profit increased by 11% year-on-year in the first three quarters of 2025, with five sub-industries showing profit growth [16][17] - The overall performance of the sector declined in Q3 2025, with a 58% year-on-year drop in net profit, primarily due to significant losses in the breeding industry [18][19] - The pig farming sector faced a downturn with falling prices and a return to industry-wide losses, while the poultry sector showed mixed results with white feathered chickens stabilizing and yellow feathered chickens experiencing a significant decline [22][58] - The pet food segment continues to thrive domestically, although exports have been negatively impacted by increased tariffs [22][58] - The animal health sector benefited from high livestock inventory levels, leading to substantial revenue growth for companies in this space [22][58] Summary by Sections 1. Overview of Agricultural, Forestry, Animal Husbandry, and Fishery Sector - The sector's net profit for Q1-Q3 2025 reached 369.4 billion, marking an 11% increase year-on-year [16] - In Q3 2025, the sector's net profit was 95.9 billion, reflecting a 58% decrease year-on-year and a 27% decrease quarter-on-quarter [18] 2. Key Sub-Industry Performance 2.1 Pig Farming - The pig farming sector's revenue for Q1-Q3 2025 was 3036.4 billion, with a 9.9% year-on-year increase, but Q3 saw a significant profit drop of 68.4% [22] - The average profit per head for self-bred pigs was approximately 60 yuan, with significant variations among companies [36][38] 2.2 Poultry Farming - White feathered chicken companies reported a revenue of 243.4 billion in the first three quarters of 2025, with a net profit increase of 104.6% [64] - Yellow feathered chicken prices declined significantly, leading to a challenging market environment [58] 2.3 Pet Food - The pet food sector achieved a revenue of 103.0 billion in the first three quarters of 2025, with a year-on-year growth of 17.7% [22] - Domestic brands are gaining market share, while exports to the U.S. have decreased by 25.6% due to tariffs [22] 2.4 Animal Health - The animal health sector's revenue reached 132.7 billion in Q1-Q3 2025, with a 70.2% increase in net profit [22] - New product launches have contributed to above-average growth for some companies in this sector [22]

Investment Rating - The report maintains a "Recommended" rating for the agricultural, forestry, animal husbandry, and fishery industry [1] Core Views - The report highlights that the de-stocking of live pigs may accelerate, with a focus on the value reassessment opportunities in the pig sector due to ongoing regulatory measures [3][4] - The poultry sector is expected to see improvements in its fundamentals, while the animal health sector is poised for performance recovery and advancements in African swine fever vaccine clinical trials [5][6] - The pet economy is thriving, with strong growth in domestic brands, indicating a rapid development phase for the pet industry [9][10] Summary by Sections 1. Swine - The swine industry is undergoing deepening regulatory measures aimed at controlling prices through capacity reduction. Short-term pressures on pig prices are anticipated due to increased market supply and inventory adjustments. The expectation is for a gradual policy approach rather than aggressive interventions [3][4][15] - Key companies recommended include Muyuan Foods and Wens Foodstuffs, with additional attention on Dekang Agriculture, Shennong Group, and Juxing Agriculture [3][16] 2. Poultry - The poultry sector shows signs of fundamental improvement, with data indicating a rise in the number of breeding stock and a shift towards self-breeding [4][25] - Recommendations include Shennong Development and Lihua Stockbreeding, as the industry navigates through low price periods [4][25] 3. Animal Health - The animal health sector has seen revenue and profit growth among listed companies, with notable performances from Reap Bio and Keqian Bio. The clinical trials for African swine fever vaccines are progressing, which may enhance market prospects [5][32] - Recommended companies include Keqian Bio, Reap Bio, and attention on Huazhong Bio and other related firms [5][32] 4. Planting - Grain prices are on the rise, with significant increases in corn and soybean meal prices noted. The commercialization of genetically modified seeds is progressing, benefiting companies with early investments in research and development [7][37] - Companies to watch include Suqian Agricultural Development, Longping High-Tech, and Denghai Seeds [7][42] 5. Feed - The feed industry is experiencing price fluctuations, with a noted increase in production volume. The concentration of the industry is expected to continue rising [8][43] - Recommended companies include Haida Group and Hefa Shares [8][45] 6. Pets - The pet market is projected to reach a scale of 300.2 billion yuan in 2024, with significant growth in both dog and cat segments. The report emphasizes the rapid development of domestic brands in this sector [9][54] - Recommended companies in the pet food sector include Guibao Pet, Zhongchong Shares, and Petty Shares, with a focus on the medical segment as well [9][55]

Core Insights - The report maintains a positive outlook on the agricultural sector, particularly in pig farming, despite ongoing supply pressures and potential acceleration in capacity reduction [1][5][6]. Group 1: Pig Farming - Supply pressures continue to be significant, with a reported decrease in the number of breeding sows by 0.77% month-on-month in October [5][17]. - The average price of market pigs has declined to 12.16 CNY/kg as of November 6, reflecting a week-on-week decrease of 0.49% [5][26]. - The profitability of pig farming remains negative, with losses reported at -89.21 CNY per head for self-bred pigs and -175.54 CNY per head for purchased piglets as of November 7 [5][37]. Group 2: Poultry Farming - The average price of white feather broilers remained stable at 7.09 CNY/kg as of November 7, with a reported loss of -1.25 CNY per bird [5][38]. - The number of breeding chickens has increased significantly, with a 143.18% month-on-month rise in the number of grandparent stock updated in October [5][38]. Group 3: Animal Health - The demand for animal health products is expected to rebound, driven by a recovery in breeding cycles and an increase in inventory levels [5][47]. - The report highlights the ongoing development of vaccines, including progress in African swine fever vaccine trials, which may enhance the sector's growth potential [5][47]. Group 4: Seed Industry - The average prices for wheat, soybean meal, and corn have shown slight declines, with wheat at 2487 CNY/ton, soybean meal at 3098 CNY/ton, and corn at 2239 CNY/ton as of November 7 [5][51]. - The report emphasizes the importance of food security and the promotion of biotechnology in the seed industry [5][51]. Group 5: Pet Industry - Pet food exports amounted to 823 million CNY in September, reflecting a year-on-year decrease of 6.8%, while domestic sales continue to grow, with a 3% increase across major e-commerce platforms [5][56][59]. - The report suggests that companies with a lower proportion of export business may be less affected by tariff disruptions, while those focusing on domestic growth are likely to enhance their market share [5][56][59].