Group 1 - The core viewpoint is that the livestock industry is entering a phase of profitability, with a significant inflow of funds into livestock assets, as indicated by the 160 million shares net inflow into the Livestock ETF (159865) [1] - Despite financial pressures since 2019, the industry is more focused on reducing losses and liabilities rather than rapidly expanding capacity, leading to potentially overly pessimistic market expectations regarding the recovery of production capacity [1] - A decline in raw material costs and a potential rebound in macro demand by 2025 are expected to positively impact the industry, suggesting that the sustainability of profitability in the pig farming sector may exceed market expectations [1] Group 2 - The livestock sector may have gradually entered a configuration zone, with attention on the marginal changes in the Livestock ETF (159865) [1] - Investors without stock accounts are advised to consider the Guotai CSI Animal Husbandry Livestock ETF Connect A (012724) and Guotai CSI Animal Husbandry Livestock ETF Connect C (012725) [1]

Core Viewpoint - The livestock industry is entering a phase of profitability, with market expectations potentially overly pessimistic regarding capacity recovery and its impact on profit cycles [1] Group 1: Industry Analysis - The livestock ETF (159865) has seen a net inflow of 9 million units, indicating strong capital interest in livestock assets [1] - Since 2019, the industry has faced significant financial pressure, leading to a focus on loss recovery and debt reduction rather than rapid capacity expansion [1] - A decline in raw material costs and a potential macro demand recovery in 2025 are expected to positively influence the industry, suggesting that the sustainability of profits in the pig farming sector may exceed market expectations [1] Group 2: Investment Opportunities - The livestock sector may have entered a configuration phase, with attention on marginal changes in the livestock ETF (159865) [1] - For investors without stock accounts, alternative options include the Guotai Zhongzheng Livestock Breeding ETF Link A (012724) and Link C (012725) [1]