Sou Hu Cai Jing·2025-07-03 02:37Core Viewpoint - The livestock farming sector is experiencing a positive trend, with the China Livestock Breeding Index showing an increase, indicating potential investment opportunities in the industry [1][2]. Group 1: Market Performance - As of July 3, 2025, the China Livestock Breeding Index (930707) rose by 0.30%, with key stocks such as Shennong Group (605296) increasing by 2.03% and Juxing Agriculture (603477) by 1.69% [1]. - The Livestock ETF (516760) also saw a rise of 0.47%, marking its fourth consecutive increase, with the latest price at 0.65 yuan [1]. - The average daily trading volume of the Livestock ETF over the past year was 442.37 million yuan, with a turnover rate of 1.16% on the day [1]. Group 2: Economic Indicators - The Consumer Price Index (CPI) fell to -0.1% in May 2025, which is below the government's target of 2%, highlighting the importance of the pig industry in boosting CPI due to its correlation with other agricultural products [1]. - The pig farming industry is currently in a state of slight oversupply, differing from other sectors like photovoltaics [1]. Group 3: Investment Opportunities - Changjiang Securities suggests that the sector is poised for significant investment opportunities due to future industry dynamics and limited production capacity [2]. - The current investment environment, characterized by low price-to-earnings (PE) ratios and stock prices, indicates that the sector is at a bottoming phase, making timing less critical than positioning for investors [2]. - Future capacity regulation is expected to reshape the industry landscape, stabilize pig prices, enhance profitability, and improve dividend distributions, thereby revaluing the sector [2]. Group 4: Index Composition - The China Livestock Breeding Index includes companies involved in livestock feed, veterinary drugs, and livestock farming, reflecting the overall performance of related listed companies [4]. - As of June 30, 2025, the top ten weighted stocks in the index accounted for 65.27% of the total, with Muyuan Foods (002714) and Wens Foodstuffs (300498) being the largest contributors [4].