HAID GROUP(SZ:002311) Hua Yuan Zheng Quan·2025-03-02 13:48Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Viewpoints - The report highlights the rising prices of agricultural products and emphasizes the need to monitor cost changes in the breeding industry and the procurement advantages of leading feed companies [3][4] - In the pig sector, while the price difference for standard pigs is at a two-year high, there is insufficient marginal support expected during the consumption off-season, leading to potential downward pressure on pig prices [4][21] - The report suggests a shift from "cyclical thinking" to focusing on financial performance, recommending investment in leading pig farming companies such as Muyuan Foods and Wens Foodstuffs [5][22] Summary by Sections 1. Pig Industry - The latest pig price has dropped to 14.51 CNY/kg, with an average slaughter weight increasing to 126.52 kg. The price for 15 kg piglets has decreased to 560 CNY/head, and the price difference for 175 kg standard pigs is 1.1 CNY/kg [4][21] - The overall supply of pigs is expected to be high throughout the year, indicating a weak price trend [4][21] - The Ministry of Agriculture reported a breeding sow inventory of 40.62 million heads, exceeding the 105% capacity control threshold [4][21] 2. Poultry Industry - The price of broiler chickens has rebounded, with chick prices increasing to 2.5 CNY/bird, up 13.64% week-on-week, while the price of broiler chickens is 6.26 CNY/kg, up 11.79% week-on-week [6][23] - The report identifies two main investment lines: focusing on high-return on equity (ROE) companies like Yisheng and full-chain leaders like Shennong Development [6][23] 3. Feed Industry - The report recommends Haida Group due to its cash flow turning point and overseas high growth potential [7][10] - Fish prices have shown positive performance, with various species experiencing different percentage changes, indicating a recovery in aquaculture profitability [7][24] 4. Pet Industry - Online sales of pet food have decreased by 7% year-on-year, with various brands showing different growth rates [11][27] - The report suggests focusing on well-performing brands like Guibao Pet and Zhongchong Co., which are entering a growth phase [11][27] 5. Market and Price Situation - The Shanghai and Shenzhen 300 Index closed at 3890.05, down 2.22% from the previous week, while the Agricultural Index closed at 2460.33, down 0.89% [30][32] - The report notes that the agricultural sector is experiencing a mixed performance, with the pet food sector showing the best performance at 2.77% [30][32]