智通财经网·2025-08-26 01:56Core Viewpoint - The report from China Galaxy Securities indicates that the pig prices in 2025 may show a downward trend year-on-year, while remaining relatively stable throughout the year. The pet food industry is in a growth phase, with leading domestic companies expected to maintain rapid growth due to increasing acceptance of domestic brands by pet owners [1][5]. Group 1: Pig Farming Industry - In July, the Consumer Price Index (CPI) remained flat year-on-year, with a 16% decrease in the cumulative trade deficit for agricultural products [1]. - The pig price fluctuated downwards in August, reaching a high of 21.06 yuan/kg in mid-August before falling to 14.25 yuan/kg by August 13, a 12% decrease compared to the end of 2024 [3]. - The number of breeding sows in China was 40.43 million at the end of Q2, with a slight increase of 0.1% [3]. - The report emphasizes the importance of monitoring cost changes and the financial health of quality pig farming companies, recommending companies such as Wens Foodstuff Group, Muyuan Foods, and others [5]. Group 2: Pet Food Industry - The export volume of pet food in July showed a recovery, with a year-on-year increase of 11.67%, although the export value decreased by 3.08% [4]. - The pet food market in China has a low concentration, but leading domestic companies are expected to grow rapidly as acceptance of domestic brands increases [4][5]. - Recommendations for the pet food sector include Zhongchong Co., Guibao Pet, and Petty Holdings, with a focus on companies that are likely to benefit from the growing market [5]. Group 3: Agricultural Index Performance - The agricultural index underperformed compared to the CSI 300 index from early August to August 22, with the agricultural index rising by 6.02% while the CSI 300 increased by 7.42% [2]. - Among sub-sectors, agricultural product processing and animal health showed relatively strong performance, while fisheries and planting sectors lagged behind [2].