Zhongyuan Securities·2025-07-18 09:32Investment Rating - The report maintains an investment rating of "Outperform" for the agricultural, forestry, animal husbandry, and fishery industry [1][9]. Core Insights - The agricultural, forestry, animal husbandry, and fishery industry is currently experiencing weak market demand and low prices for livestock and poultry, particularly in the pig farming sector, which has seen a significant price drop [9][12]. - The report highlights that the industry is currently undervalued, with price-to-earnings (P/E) and price-to-book (P/B) ratios below historical averages, suggesting potential for valuation recovery [9][12]. Summary by Sections Market Review - In June 2025, the agricultural, forestry, animal husbandry, and fishery index rose by 1.13%, underperforming the CSI 300 index, which increased by 2.50%, resulting in a relative underperformance of 1.37 percentage points [9][12]. - The planting sector showed the highest gains, while the animal health processing sector experienced the largest declines [12]. Livestock Farming Data Tracking - Pig Farming: The average trading price for pigs in June 2025 was 14.28 yuan/kg, down 2.16% month-on-month and 21.81% year-on-year. The market shifted to a surplus situation, leading to price declines [9][17]. - Broiler Chickens: The average price for broiler chicks in June 2025 was 2.15 yuan/chick, reflecting a slight decrease. The cautious replenishment of chicks due to declining prices further pressured the market [9][27]. Pet Food Sector - In May 2025, pet food exports totaled 28,900 tons, a year-on-year decrease of 5.52%. The cumulative export value for the first five months was $581 million, up 4.59% year-on-year [9][34]. Major Agricultural Product Price Tracking - The report includes tracking of key agricultural product prices, indicating fluctuations in corn, wheat, and soybean meal prices during June 2025 [9][39]. Industry Dynamics and Company News - The report outlines significant events in the industry, including a decrease in grain imports and ongoing developments in the seed industry aimed at enhancing agricultural productivity [9][46]. - Key announcements from listed companies in the sector include various asset restructuring and financing activities [9][48].