智通财经网·2025-09-19 09:09Core Viewpoint - The report from China Galaxy Securities highlights a significant increase in the market share and output of listed pig farming companies in 2025, driven by cost optimization and a favorable policy environment, despite a downward trend in pig prices [1][2][5]. Group 1: Industry Performance - In the first half of 2025, 15 listed pig companies collectively produced 96.62 million pigs, a year-on-year increase of 32.4%, achieving a market share of 26.4%, which is a historical high [1][2]. - The animal health and breeding sectors have shown exceptional returns, with the breeding industry rising by 28.5% from the beginning of 2025 to September 17 [1][2]. Group 2: Price Trends and Profitability - Monthly pig prices have been on a downward trend since 2025, significantly below the industry average, leading to profit compression across the industry [3][4]. - In August, the total sales volume of the 15 listed pig companies reached 15.58 million pigs, with a month-on-month increase of 7.2% and a year-on-year increase of 22.9% [3]. Group 3: Supply and Demand Dynamics - The supply side is expected to accelerate after August, which may lead to fluctuations in pig prices despite overall demand continuing to expand [4][5]. - The average number of breeding sows in 2025 is estimated at 40.42 million, a decrease of 1.68 million year-on-year, indicating a significant contraction in breeding capacity [4]. Group 4: Investment Recommendations - China Galaxy Securities suggests that despite the downward trend in pig prices, the cost optimization by leading pig companies will allow them to maintain profitability [5]. - The report recommends focusing on large pig companies such as Wens Foodstuffs Group and Muyuan Foods, as well as smaller companies like Tiankang Biological, while keeping an eye on other related firms in the sector [5].