Shenwan Hongyuan Securities·2025-11-10 08:16Investment Rating - The report maintains a positive outlook on the pig farming industry, suggesting a left-side layout opportunity as the industry enters a phase of accelerated capacity reduction driven by both fundamental and policy factors [2][3]. Core Insights - The report indicates that the pig farming industry is experiencing a bottoming out of prices, with a notable increase in the utilization rate of breeding facilities, leading to a potential acceleration in capacity reduction. The current pig cycle is nearing its downward tail, making it an opportune time for left-side investments [2][3]. - The pet food market is showing strong performance from domestic brands during the Double Eleven sales event, indicating a growing market for domestic pet food products. The report emphasizes the importance of monitoring the performance of leading companies in this sector [2][3]. - The white feather broiler chicken market is witnessing stable chick prices and a slight recovery in chicken meat prices, suggesting a focus on leading companies for long-term value amidst a backdrop of abundant supply [2][3]. Summary by Sections Agricultural Stock Market Performance - The Shenwan Agricultural, Forestry, Animal Husbandry, and Fishery Index rose by 0.8%, mirroring the performance of the Shanghai and Shenzhen 300 Index. The top five gainers included Pingtan Development (25.7%), Green Kang Bio (11.7%), and Huazi Industry (11.3%) [3]. Pig Farming - The report notes a decline in pig prices, with the average selling price of external three yuan pigs at 11.9 yuan/kg, down 3.6% week-on-week. The average loss for self-breeding sows was -41.1 yuan/head, marking the sixth consecutive week of losses [2][3]. - The report highlights that the number of breeding sows has decreased by 0.77% month-on-month, indicating a proactive capacity reduction in response to ongoing losses [2][3]. Pet Food - The Double Eleven sales event revealed that domestic brands dominated the pet food market, with significant representation in the top-selling brands. The report suggests that the domestic pet food market remains a high-growth sector despite short-term export challenges [2][3]. Broiler Chicken Farming - The average selling price of white feather broiler chicks was 3.45 yuan/chick, with a week-on-week increase of 1.47%. The average selling price of broiler chickens was 3.49 yuan/kg, reflecting a slight recovery [2][3].