农林牧渔行业年度投资策略：养殖链价格获支撑，宠物行业延续高景气

Investment Rating - The report assigns an "Overweight" rating to the industry [2]. Core Insights - The report highlights that the breeding chain prices are supported, and the pet industry continues to show high prosperity [2]. - It emphasizes the importance of cost reduction and efficiency improvement in the pig farming sector, with expectations for pig prices to be supported in 2025 [2][5]. - The report suggests that the domestic pet market is experiencing a sustained high level of prosperity, with the urban pet (dog and cat) consumption market exceeding 300 billion yuan, growing by 7.5% year-on-year [5]. Summary by Sections 1. Industry Performance - The agricultural sector underperformed compared to the CSI 300 index by 23 percentage points in 2024, with the agricultural index declining by 7.2% [26]. - The agricultural sector's allocation in stock investment was slightly above the standard configuration, indicating a stable position [33]. 2. Pig Farming Sector - The report notes a decline of approximately 4.5% in the average number of breeding sows in 2024 compared to 2023, with expectations for pig prices to be supported in 2025 [2]. - Cost reduction and efficiency improvement remain critical, with major listed pig companies expected to see performance guarantees due to continuous growth in pig output [2][5]. - The report recommends focusing on leading pig farming companies such as Wens Foodstuffs, Muyuan Foods, and Shennong Group [5]. 3. Poultry Industry - The performance of white feather broiler chickens is declining, with high pathogenic avian influenza posing uncertainties [2]. - The report anticipates that the yellow feather chicken industry will maintain normal profitability in 2025, with a focus on companies related to chicken seedlings [2]. 4. Pet Industry - The report indicates a recovery in pet food exports, with domestic pet food consumption continuing to grow, driven by high brand recognition and consumer preferences for high-cost performance products [4][5]. - The domestic pet food market is expected to maintain stable growth, with key companies like Guobao Pet and Zhongchong Co. being highlighted for their competitive advantages [4]. 5. Animal Health Sector - The report discusses the lagging performance of animal health companies compared to breeding profits, with expectations for gradual recovery as breeding companies continue to be profitable [5]. - It suggests that the domestic pet medical market will account for 28% of the total pet market share in 2024, indicating significant growth potential [5].