Investment Rating - The industry investment rating is optimistic [1] Core Viewpoints - The beef import market is characterized by high concentration, dominated by South America and growing imports from Australia [4][18] - In the first half of 2025, China's beef imports are expected to decline in volume but increase in price, with a total import of 1.3 million tons, a year-on-year decrease of 9.5% and an average price of 18.39 yuan per jin, an increase of 8.4% [4][40] - Import policies are tightening, with increased tariffs and stricter qualification requirements for importers, particularly affecting U.S. beef imports [4][59] Summary by Sections 1. Major Beef Import Countries - The top six countries accounted for over 93% of total beef imports in 2023-2025H1, with Brazil leading at 46%, followed by Argentina and Australia [4][14] - Australia has become the third-largest beef supplier to China, benefiting from the China-Australia Free Trade Agreement and U.S.-China trade tensions [4][26] 2. Changes in Beef Imports - In the first half of 2025, China's beef imports are projected to decrease in volume while prices rise, reflecting a tightening supply from overseas and an upgrade in domestic consumption [4][40] - The average price of imported beef has increased due to tightening global supply, reducing the price advantage of imported beef over domestic products [4][42] 3. Investment Recommendations - With the expected decline in import volumes and tightening import policies, domestic beef prices are likely to rise, benefiting high-quality livestock companies [4][59] - Companies such as YouRan MuYe, Modern MuYe, and China Shengmu are recommended for their potential to capitalize on rising beef prices [4][59]