Guoxin Securities·2025-06-08 15:00Group 1: Investment Strategy Overview - The report recommends focusing on undervalued leading companies in the pig and poultry sectors, as well as pet-related stocks and Hai Da Group [1][3] - Key recommended stocks include Guangming Meat Industry, Hai Da Group, Muyuan Foods, Lihua Stock, and Zhongchong Stock, which are expected to benefit from industry trends [1][3] - The report highlights a positive outlook for the beef cycle reversal, stable supply in the pig sector, and growth potential in the pet food market [1][3] Group 2: Sector-Specific Insights - In the beef sector, the report anticipates a reversal in the cycle due to domestic supply reduction and shrinking imports, with Guangming Meat Industry being a key player [1][14] - The pig sector is expected to maintain low volatility in production, with Muyuan Foods projected to sustain good profitability in 2025 [1][14] - The poultry sector is seeing increased supply, but demand recovery is expected to support prices, particularly for white chicken [1][14][37] Group 3: Price Tracking and Market Performance - As of May 30, 2025, the price of live pigs was 14.39 CNY/kg, down 2.44% month-on-month, while the price of white chicken was 7.30 CNY/kg, down 1.08% month-on-month [2][25] - The SW Agricultural and Forestry Index rose by 2.48% in May, outperforming the Shanghai and Shenzhen 300 Index, which increased by 1.85% [2][25] - The report notes that the domestic market is witnessing a rise in new consumption trends, leading to significant stock price increases for certain companies [2][25] Group 4: Company-Specific Financial Projections - Guangming Meat Industry is projected to have an EPS of 0.53 CNY in 2025, with a PE ratio of 16 [4] - Muyuan Foods is expected to achieve an EPS of 3.57 CNY in 2025, with a PE ratio of 12, indicating strong growth potential [4] - Hai Da Group is forecasted to have an EPS of 2.64 CNY in 2025, with a PE ratio of 23, reflecting its leading position in the feed industry [4]