Zhongyuan Securities·2025-06-23 09:57Investment Rating - The report maintains an "Outperform" rating for the agriculture, forestry, animal husbandry, and fishery industry [1] Core Insights - The agriculture, forestry, animal husbandry, and fishery industry outperformed the benchmark index in May 2025, with a 2.22% increase compared to a 1.85% rise in the CSI 300 index, resulting in a 0.37 percentage point outperformance [5][11] - The report highlights a decline in livestock prices, particularly for pigs and chickens, while the pet food sector shows strong growth in exports [5][8][32] - The investment suggestion emphasizes that the industry is currently undervalued, with price-to-earnings (P/E) and price-to-book (P/B) ratios below historical averages, indicating potential for valuation recovery [5] Summary by Sections Market Review - In May 2025, the agriculture, forestry, animal husbandry, and fishery index rose by 2.22%, ranking 23rd among 30 sectors [5][11] - The animal health sector saw the highest gains, while the agricultural product processing sector experienced the largest declines [5] Livestock Industry Data Tracking - Pig Farming: The average trading price for pigs was 14.60 CNY/kg in May 2025, reflecting a 1.60% month-on-month decline and an 8.16% year-on-year drop. The supply remains high, leading to a forecast of increased supply and demand in the second half of 2025 [8][16][22] - Broiler Chickens: The average price for broiler chicken chicks was 2.82 CNY/chick, with a slight month-on-month decline. The average price for broiler chickens was stable at 3.66 CNY/kg, with market demand remaining moderate [24][27][29] Pet Food Export Data - In April 2025, China's pet food exports reached 27,800 tons, a year-on-year increase of 6.90%. The total export value for the first four months of 2025 was 454 million USD, up 6.07% year-on-year [32][35] Major Agricultural Product Price Tracking - The report includes tracking of key agricultural product prices, noting fluctuations in corn, wheat, and soybean meal prices during May 2025 [36][39] Industry Dynamics and Company News - The report outlines significant industry events, including the completion of new grain storage facilities and international trade agreements aimed at reducing reliance on U.S. agricultural products [44][50] - Key announcements from listed companies in the sector include share buybacks and changes in stock option plans [46][49]