Tianfeng Securities·2025-08-03 13:44Investment Rating - The industry rating is "Outperform the Market" (maintained rating) [8] Core Insights - The report highlights the low prices of piglets and the high average weight of market pigs, indicating a significant expectation gap in the pig sector [1][2] - The dairy and beef sectors are experiencing a potential new cycle, with a focus on the recovery of milk prices and the initiation of a beef super cycle [3][4] - The pet food sector is witnessing the rise of domestic brands and a positive trend in exports, reflecting the growth of the pet economy [5][6] - The poultry sector is facing challenges with breeding imports and demand recovery, particularly in the white and egg-laying chicken segments [7][8] - The planting sector emphasizes food security and the importance of biological breeding strategies [9][10] - The feed sector is recommended for investment due to market share growth and consistent performance of leading companies like Haida Group [11][12] Summary by Sections Pig Sector - As of August 2, the average price of pigs is 14.35 CNY/kg, down 3.1% from the previous week, with a profit of approximately 141 CNY per head for self-breeding [1][12] - The price of piglets has reached a new low for the year, with 7kg piglets priced at 429 CNY/head [1][12] - The report suggests focusing on undervalued companies with strong profitability in the pig sector, such as Muyuan Foods and Wens Foodstuffs [2][13] Beef Sector - The average price of live cattle is 26.49 CNY/kg, with a year-on-year increase of 11.6% [3][14] - The report indicates that the dairy industry is nearing the end of a capacity reduction phase, with significant losses expected to drive a rebound in milk prices [4][15] Pet Sector - Domestic brands in the pet food market are growing rapidly, with notable sales figures reported for cat and dog food [5][16] - Exports of pet food have increased, with a total of 16.79 million tons exported in the first half of 2025, reflecting a year-on-year growth of 5.7% [5][16] Poultry Sector - The report emphasizes the importance of breeding imports and the potential for price increases in yellow chickens due to recovering demand [6][7] - The average price of egg-laying chickens is expected to remain high due to import restrictions [7][21] Planting Sector - The focus is on achieving food security through improved agricultural practices and the promotion of biotechnology [9][23] - Key recommendations include investing in leading seed companies and agricultural resource firms [9][23] Feed Sector - Haida Group is highlighted as a key investment opportunity due to its increasing market share and strong performance [11][24] - The report notes a significant recovery in the aquaculture and feed sectors after a prolonged downturn [11][24]