Shenwan Hongyuan Securities·2025-06-09 10:13Group 1 - The core viewpoint of the report emphasizes the intersection of value and prosperity in the agricultural sector, particularly in the livestock and aquaculture industries, with a focus on the investment strategies for the second half of 2025 [2][3] - In the first half of 2025, the agricultural sector performed well, with the agricultural index ranking 8th among 31 sub-industries, benefiting from a strong supply side and improved profitability in livestock enterprises [2][9] - The report identifies three main investment themes for the second half of 2025: 1) Long-term value in pig farming under weak cycles and pessimistic expectations; 2) Continued recovery in livestock support sectors due to improved profitability; 3) The pet economy remains a core growth area with favorable industry dynamics [2][3] Group 2 - In pig farming, the report notes a significant divergence in profitability under weak cycles, with leading enterprises gaining a competitive edge, and emphasizes the importance of long-term value in high-quality pig farming companies [2][21] - The livestock support sector is entering a performance improvement phase after a period of intense competition, with signs of recovery in demand and profitability [2][28] - The pet food industry is experiencing a "golden age," with strong growth and increasing market share and profitability for leading brands, driven by enhanced marketing efforts [2][57] Group 3 - The report highlights key companies to watch in the pet food sector, including Guibao Pet, Zhongchong Co., Petty Co., and Lusi Co., as well as in the livestock support sector, such as Haida Group, Bangji Technology, and KQ Biology [2][3] - In the pig farming sector, notable companies include Muyuan Foods, Wens Foodstuff, and DeKang Agriculture, which are expected to perform well due to their competitive advantages [2][3]