GF SECURITIES·2026-01-23 01:10Investment Rating - The industry investment rating is "Buy" [2] Core Insights - The public fund allocation in the agriculture, forestry, animal husbandry, and fishery sector has decreased by 0.15 percentage points, currently at a low allocation level of approximately 1.01%, which is 0.38 percentage points below the standard allocation ratio of 1.39% [15][21] - The report highlights a continued decline in holdings across various sub-sectors, with the feed sector experiencing the most significant drop of 0.14 percentage points [21] - Major public fund holdings are concentrated in leading companies within the livestock breeding industry and related agricultural sectors, with notable stocks including Muyuan Foods (0.28%), Wens Foodstuffs (0.07%), and others [22][24] Summary by Sections 1. Sector Allocation - The public fund allocation in the agriculture, forestry, animal husbandry, and fishery sector is approximately 1.01%, down 0.15 percentage points from the previous quarter, indicating a low allocation level compared to the standard ratio of 1.39% [15] 2. Sub-sector Holdings - The holdings in the feed and breeding sectors have both decreased, with the feed sector at 0.47% (down 0.14 percentage points) and the breeding sector at 0.43% (down 0.01 percentage points) [21] 3. Major Holdings - The report indicates that public fund holdings are primarily in leading companies in the livestock breeding chain and related agricultural sectors, with significant holdings in Muyuan Foods, Wens Foodstuffs, and others [22] 4. Investment Recommendations - In the pig farming sector, the report suggests that companies with cost advantages will have a significant competitive edge, recommending major players like Wens Foodstuffs and Muyuan Foods, while also highlighting potential in smaller firms like Tian Kang Biological and Shennong Group [37] - For the poultry sector, the report notes potential supply declines due to avian influenza, recommending attention to companies like San Nong Development and Yisheng Biological [37] - In the feed sector, the report remains optimistic about leading companies expanding their market share domestically and internationally, emphasizing the importance of cost efficiency [37] - The report also suggests monitoring developments in biotechnology and industry consolidation in the planting sector, recommending companies like Suqian Agricultural Development and Beidahuang [37] - In the pet industry, the report highlights the trend towards market consolidation and recommends companies like Guibao Pet and Zhongchong Co. [37]