Tianfeng Securities·2025-09-07 06:12Investment Rating - Industry rating: Outperform the market (maintained rating) [7] Core Views - The report emphasizes the importance of the pig sector's expected differences, highlighting the current low prices and the potential for capacity reduction due to policy guidance and weak demand [11][12] - The dairy and beef sectors are seen as entering a new cycle, with opportunities arising from the recovery of raw milk prices and the initiation of a beef super cycle [13] - The pet industry is experiencing rapid growth, with domestic brands rising and export trends improving, indicating a robust pet economy [14] - The poultry sector faces challenges with breeding imports and demand fluctuations, suggesting a focus on self-breeding opportunities [16][19] - The planting sector is shifting towards biological breeding strategies to ensure food security, with a focus on increasing yields through improved seed technology [21] - The feed sector is recommended for investment due to market share growth and consistent performance, particularly in companies like Haida Group [22] Summary by Sections Pig Sector - As of September 6, the average price of pigs is 13.87 CNY/kg, up 0.73% from the previous week, while the price of piglets is at a new low of 324 CNY/head [11] - The report suggests focusing on undervalued companies with strong profitability, with leading firms like Muyuan Foods and Wens Foodstuffs highlighted for their market capitalization [12] Beef Sector - Raw milk prices are stabilizing, and the beef cycle may be starting, with a focus on companies that can leverage mother cow resources [13] Pet Sector - The domestic pet food market is growing, with significant sales increases noted, and companies like Guibao Pet and Zhongchong Co. are recommended for investment [14] Poultry Sector - The report highlights the uncertainty in breeding imports due to avian influenza outbreaks, with a recommendation to focus on self-breeding opportunities [16][17] - The yellow chicken market is expected to see price improvements due to demand increases in the second half of the year [19] Planting Sector - The focus is on achieving higher yields through biological breeding, with key recommendations for seed companies like Longping High-Tech and Dabeinong [21] Feed Sector - Haida Group is recommended for its increasing market share and consistent performance in the feed industry, with expectations of a market recovery [22]