Group 1 - The core viewpoint is that the livestock sector is experiencing significant capital inflow, with a net inflow of 102 million shares into the livestock ETF (159865), indicating strong investor interest in livestock assets [1] - The industry is witnessing notable cost optimization, leading to sustained profitability in pig farming, with companies' balance sheets continuously improving [1] - The domestic sow inventory is expected to stabilize after a reduction, supported by enhanced farming efficiency, stringent cost control, and rigid consumer demand, suggesting that the pig farming industry may enter a prolonged profitability cycle with reduced volatility [1] Group 2 - Relevant institutions indicate that the livestock sector may have gradually entered a configuration phase, with attention on the marginal changes in the livestock ETF (159865) [2] - For investors without stock accounts, alternative options include the Guotai Zhongzheng Livestock Farming ETF Link A (012724) and Link C (012725) [2]

Group 1 - The core viewpoint indicates that the breeding sector is experiencing increased capital inflow, with the breeding ETF (159865) seeing a net inflow of 6 million units and over 200 million yuan in the past three days [1] - In July, the profit from self-breeding and self-raising of pigs improved month-on-month, with pig prices rebounding from a low of 24.1 yuan/kg to a mid-August peak of 21.06 yuan/kg, before experiencing a decline [1] - As of July 16, 2025, the pig price was 14.96 yuan/kg, reflecting an 8% decrease compared to the end of 2024 [1] Group 2 - The profit from self-breeding pigs was reported at 90.89 yuan per head, while the profit from purchased piglets was negative at -18.66 yuan per head [1] - The number of breeding sows in China was recorded at 40.42 million heads at the end of May, showing a slight month-on-month increase of 0.1% [1] - The breeding sector is expected to maintain a relatively stable average price throughout 2025, with potential variations due to the optimization of costs by leading pig companies and changes in production capacity and market conditions [1]