Core Viewpoints - The pig prices have entered a bottom area, with a focus on the water product seedling situation in April [1] - The report maintains a "Buy" rating for the agricultural, forestry, animal husbandry, and fishery sector [2] Market Review - In March 2026, the agricultural, forestry, animal husbandry, and fishery sector outperformed the CSI 300 index by 0.04 percentage points, with the sector declining by 4.38% compared to a 4.42% decline in the CSI 300 [18][19] - The livestock breeding sector experienced a smaller decline of 1.4% in March [18][22] Livestock Breeding - In March 2026, the national average price of live pigs was 10.06 CNY/kg, down 12.2% month-on-month and down 30.7% year-on-year [28][29] - The average loss for self-bred pigs in March was approximately 291 CNY per head, a decrease of 192 CNY month-on-month [31] - The average price of piglets was 23.6 CNY/kg, down 7.4% month-on-month [32] - The pig-to-feed ratio was 4.18, down 0.65 month-on-month [32] Feed and Animal Health - In March, the prices of aquatic products fluctuated, with a notable increase in feed prices due to rising raw material costs [6] - The report anticipates significant growth in the feed industry sales in March, driven by the upcoming spring seedling investment [6] - Leading feed companies are expected to expand their market share domestically and internationally due to their cost advantages [6] Dairy Cattle - As of March 19, 2026, the price of fresh milk in major production areas was 3.03 CNY/kg, down 1.9% year-on-year [6] - The industry is entering a destocking phase, with supply and demand expected to balance in the future [6] Key Company Valuation and Financial Analysis - The report highlights several key companies with strong financial metrics, including: - Wen's Foodstuffs Group (300498.SZ) with a target price of 18.55 CNY and a PE ratio of 21.41 for 2025E [7] - Muyuan Foods (002714.SZ) with a target price of 63.40 CNY and a PE ratio of 16.20 for 2025E [7] - Lihua Agricultural (300761.SZ) with a target price of 28.72 CNY and a PE ratio of 29.67 for 2025E [7]