Shenwan Hongyuan Securities·2025-11-10 08:13Investment Rating - The report maintains an "Overweight" rating for the agricultural sector, indicating a positive outlook for the industry compared to the overall market performance [46]. Core Insights - The report highlights that the pig farming industry is experiencing a bottoming out of prices, driven by both fundamental and policy factors, which may accelerate capacity reduction [2][3]. - The report emphasizes the importance of focusing on left-side investment opportunities in the pig farming sector as the current pig cycle approaches its downward tail [2][3]. - The domestic pet food market is identified as a high-growth area, with strong performance from local brands during the "Double Eleven" sales event, suggesting a positive growth trajectory for leading companies in this segment [2][3]. Summary by Sections Agricultural Stock Market Performance - The Shenwan Agricultural Index rose by 0.8%, mirroring the performance of the CSI 300 Index [3]. - The top five gainers included Pingtan Development (25.7%), Green Kang Biotechnology (11.7%), and Huazi Industrial (11.3%) [3][10]. Pig Farming - Pig prices are stabilizing, with a national average selling price of 11.9 CNY/kg as of November 9, reflecting a week-on-week decrease of 3.6% [2]. - The average weight of pigs sold is at a three-year high of 128.3 kg, indicating a potential for improved profitability as the industry undergoes capacity reduction [2][3]. Pet Food - Domestic pet food brands performed exceptionally well during the "Double Eleven" sales, with top brands being predominantly local [2]. - The report suggests that the pet food market remains a high-growth area, with recommendations to focus on leading companies like Guobao Pet and Zhongchong Co [2][3]. Chicken Farming - The price of white feather broiler chicks remains stable, with an average selling price of 3.45 CNY/chick, indicating a reasonable profit margin in the industry [2]. - The report notes that the supply of broiler chickens is expected to remain ample throughout 2025, emphasizing the importance of focusing on leading companies for long-term value [2].