Investment Rating - The report maintains an "Outperform" rating for the agricultural sector [1][5][4] Core Views - The report is optimistic about the reversal of the livestock cycle in 2025, the growth of pet consumption, and the undervaluation of leading companies in the breeding chain [3][4] - It highlights a new round of beef price increases and expects strong support for pork prices due to low production capacity [1][3] Summary by Relevant Sections Livestock - Pork prices are expected to maintain low volatility, with a price of 13.70 CNY/kg as of August 15, 2025, up 0.37% week-on-week [1][13] - The beef market is seeing a new price increase, with an average price of 60.58 CNY/kg, up 0.41% week-on-week and 24.91% year-on-year [1][15] - The report anticipates a sustained improvement in the beef and raw milk markets due to domestic and international demand [3] Poultry - White chicken supply has slightly increased, with a price of 7.06 CNY/kg, down 1.67% week-on-week [1][14] - Yellow chicken supply remains at a low level, with prices for various types showing increases of 13% to 5% week-on-week [1][14] - The report expects long-term consumption levels for white chicken to rise, benefiting from domestic demand recovery [3] Feed and Other Agricultural Products - Soybean prices are at 3953 CNY/ton, up 0.67% week-on-week, while soybean meal prices are at 3092 CNY/ton, up 2.79% week-on-week [2][15] - Corn prices are expected to maintain a moderate increase, with a current price of 2376 CNY/ton, down 0.34% week-on-week but up 1.19% year-on-year [2][15] - The report notes that sugar prices have increased slightly, with a current price of 5960 CNY/ton, up 0.85% week-on-week [2][15] Investment Recommendations - Recommended stocks include: - Livestock: Youan Livestock, Modern Animal Husbandry, China Shengmu, Guangming Meat [3][4] - Pet Industry: Guibao Pet, Zhongchong Co., RuiPu Bio [3][4] - Feed: Haida Group [3][4] - Swine: Dekang Agriculture, Muyuan Foods, Huazhong Foods, Wens Foodstuffs, and others [3][4] - Poultry: Lihua Co., Yisheng Co., Shengnong Development [3][4]

Investment Rating - The report maintains an "Outperform" rating for the agricultural sector [1][6]. Core Views - The report is optimistic about the reversal of the livestock cycle in 2025, with expectations of a simultaneous rise in domestic and international beef and raw milk markets [4]. - The pet consumption sector is identified as a growing industry that will benefit from demographic changes [4]. - The feed industry, particularly Haida Group, is expected to achieve excess returns due to the recovery of the aquaculture market [4]. - The pig farming sector shows insufficient expansion willingness, but a stable market is anticipated in 2025, with a focus on undervalued leading companies [4]. - The poultry sector is expected to see a long-term increase in consumption, with yellow chicken likely to benefit first from domestic demand recovery [4]. Summary by Sections Livestock - Beef prices have started to rise, with the average price on August 8 being 60.33 yuan/kg, a 0.97% increase from the previous week and a 29.74% increase year-on-year [2][16]. - The pig price on August 8 was 13.65 yuan/kg, down 3.81% week-on-week and down 33.51% year-on-year [14]. - The report forecasts a stable pig market in 2025, with a focus on leading companies like Muyuan and Wens [4][5]. Poultry - The price of broiler chicks increased by 23.08% week-on-week to 3.36 yuan/chick, while the price of broilers rose by 7.16% to 7.18 yuan/kg [15]. - The report anticipates a long-term increase in consumption for white chickens and expects yellow chickens to benefit from improved domestic demand [4]. Feed and Other Agricultural Products - The report notes that soybean meal prices are at historical lows, with a current price of 3008 yuan/ton, a 0.33% increase week-on-week [3][16]. - Corn prices are expected to maintain a moderate upward trend, with the current price at 2384 yuan/ton, down 0.71% week-on-week but up 0.76% year-on-year [3][16]. - Sugar prices have decreased slightly, with the current price at 5910 yuan/ton, down 1.34% week-on-week [3][16]. Investment Recommendations - Recommended stocks include: - Livestock: YouRan, Modern Farming, China Shengmu, and Guangming Meat [4][5]. - Pet industry: Guibao Pet, Zhongchong Co., and Ruipu Biotech [4]. - Feed industry: Haida Group [4]. - Pig farming: Dekang Agriculture, Muyuan, Huadong, Wens, and others [4]. - Poultry: Lihua, Yisheng, and Shengnong Development [4].

Investment Rating - The report maintains an "Outperform" rating for the agricultural sector [1][5][4]. Core Views - The report is optimistic about the reversal of the livestock cycle in 2025, with expectations of a simultaneous rise in domestic and international beef and milk prices [3][4]. - The pet consumption sector is identified as a growing industry that will benefit from demographic changes [3]. - The feed industry, particularly Haida Group, is expected to achieve excess returns due to the recovery in aquaculture [3]. - The report anticipates sustained profitability in the pig farming sector due to limited expansion intentions, with a focus on undervalued leading companies [3]. - The poultry sector is expected to see a long-term increase in consumption, with yellow chicken likely to benefit first from improved domestic demand [3]. Summary by Sections Livestock - Beef prices have started to rise, with the average price at 59.75 CNY/kg as of August 1, 2025, reflecting a 0.88% increase week-on-week and a 28.49% increase year-on-year [1][14]. - The pig market shows stable production capacity, with prices at 14.19 CNY/kg, up 0.78% week-on-week, and a forecast for continued price stability into 2025 [1][13]. Poultry - White chicken supply has slightly increased, with prices at 6.70 CNY/kg, up 0.6% week-on-week [1][14]. - Yellow chicken prices are stable, with potential benefits from domestic demand improvements [1][14]. Feed - Soybean meal prices are at 2998 CNY/ton, up 1.15% week-on-week, with a favorable supply-demand outlook [2][16]. - Corn prices are at 2401 CNY/ton, showing a slight decrease of 0.12% week-on-week but a 0.67% increase year-on-year [2][16]. Investment Recommendations - Recommended stocks include: - Livestock: YouRan Agriculture, Modern Agriculture, China Shengmu, Guangming Meat [3][4]. - Pets: Guibao Pet, Zhongchong Co., RuiPu Bio [3]. - Feed: Haida Group [3]. - Swine: Dekang Agriculture, Muyuan Foods, Huazhong Foods, Wens Foodstuffs, Bangji Technology, Shennong Group, New Five Feng, Juxing Agriculture, Tangrenshen, Tiankang Biological [3]. - Poultry: Lihua Co., Yisheng Co., Shengnong Development [3]. - Animal Health: Keqian Biological, Huisheng Biological [3]. - Planting Chain: Hainan Rubber, Qianyuan High-Tech, Fengle Seed Industry, Longping High-Tech [3].

Group 1: Core Views - The report maintains an "outperform" rating for the agriculture, forestry, animal husbandry, and fishery sector, highlighting a favorable investment environment for livestock, pet, and pork industries [1][3][12] - The report emphasizes the potential reversal of the beef cycle in 2025, with expectations of rising prices driven by both domestic and international markets [14][21] - The pet industry is identified as a high-growth sector, benefiting from changing consumer demographics and increasing emotional spending [15][18] Group 2: Investment Recommendations - Key recommendations for the livestock sector include Guangming Meat Industry, a rare listed beef company with stable resources from New Zealand, and Muyuan Foods, a leading player in pig farming [1][3][18] - In the pet food sector, Zhongchong Co. is highlighted as a pioneer with synchronized growth in domestic and international markets [1][3][18] - For the pork industry, the report recommends companies such as DeKang Agriculture and Muyuan Foods, which are expected to benefit from improving cash flows and dividend ratios [1][3][16] Group 3: Market Trends and Data - As of June 2025, the average price of live pigs was 14.80 yuan/kg, reflecting a month-on-month increase of 2.85% [2][21] - The report notes a decrease in the price of 7kg piglets to 433 yuan/head, down 13.95% month-on-month, indicating a cautious approach to industry expansion [2][21] - The poultry sector is experiencing increased supply, with expectations of demand recovery, particularly for yellow chickens, which are anticipated to benefit from domestic demand improvements [28][39]