Summary of Key Points from Conference Call Records Industry Overview: Home Appliances - Emerging markets have a low penetration rate in home appliances, driving demand growth due to economic development. These markets account for 32% of global home appliance sales and 67% of the population, indicating significant future growth potential [1][2][4] - The export growth rate for white goods is notably high, with Southeast Asia and Latin America experiencing compound annual growth rates of over 13% and 20%, respectively, over the past five years [1][2] Core Insights and Arguments - Short-term fluctuations in exports to the U.S. are influenced by tariff policies, but stable end-user demand is expected to lead to a gradual recovery in exports in the third and fourth quarters once tariff policies are clarified [1][5] - Domestic market growth has been stimulated by national subsidy policies, with air conditioner, refrigerator, and washing machine sales increasing in the first half of the year. However, the sustainability of these subsidy policies is uncertain, and their potential cessation could disrupt the industry, though the impact is expected to be less than anticipated [1][6][7] - The national subsidy policy has significantly boosted sales of emerging appliance categories like robotic vacuum cleaners, which saw sales growth exceeding 40%. Even if subsidies are withdrawn in the future, these categories are expected to maintain high growth potential due to short replacement cycles [1][8] Investment Opportunities - The white goods industry primarily relies on replacement demand, with limited oversupply. Companies with high dividend yields and payout ratios above 50%, such as Gree Electric, Midea Group, Haier, and Hisense, are recommended for investment [1][9][10] - Companies with strong overseas advantages and notable performance reversals, such as Ecovacs, Roborock, Anker Innovations, TCL Electronics, and Hisense Visual, are also highlighted as worthy of attention [1][10] Additional Important Insights - The national subsidy policy has had a limited impact on overall market sales, primarily affecting pricing and product structure rather than significantly increasing total sales volumes [1][7] - Emerging markets, particularly in Asia, are expected to see rapid increases in penetration rates as GDP per capita rises, further driving industry growth [4] - The home appliance sector is characterized by a focus on replacement demand domestically, with emerging categories showing significant growth potential even in the absence of subsidies [1][9]

Group 1: Report Industry Investment Rating - No relevant content Group 2: Core Viewpoints of the Report - Short - term: The slaughter rhythm of the breeding end is slow, demand is average, supply and demand are in a stalemate, and the spot price fluctuates steadily. The main live - hog futures contract rebounded unexpectedly on Wednesday, rising 1.08% and returning to the 14,000 mark, but the supply pressure remains in the future, and the rebound space is expected to be limited [2] Group 3: Summary by Related Catalogs 1. Futures Market - The closing price of the main live - hog futures contract was 14,020 yuan/ton, up 135 yuan; the position volume was 72,340 lots, up 1,078 lots; the number of warehouse receipts was 701 lots, unchanged; the net long position of the top 20 futures holders was - 16,045 lots, down 526 lots [2] 2. Spot Market - The live - hog prices in Henan Zhumadian, Jilin Siping, and Guangdong Yunfu were 15,100 yuan/ton, 14,500 yuan/ton, and 15,300 yuan/ton respectively, all unchanged. The main live - hog basis was 1,080 yuan/ton, down 135 yuan [2] 3. Upstream Situation - The monthly live - hog inventory was 41.731 million heads, down 1.012 million heads; the inventory of breeding sows was 4.039 million heads, down 27,000 heads. The month - on - month growth rate of CPI was - 0.1%, up 0.6 percentage points. The spot price of soybean meal in Zhangjiagang was 3,100 yuan/ton; the corn spot price was 2,373.33 yuan/ton, down 0.4 yuan; the Dalian Commodity Exchange's pig feed cost index was 944.66, up 5.95. The monthly output of feed was 27.772 million tons, down 664,000 tons; the price of binary breeding sows was 1,641 yuan/head, unchanged. The weekly breeding profit of purchased piglets was 58.46 yuan/head, up 9.93 yuan; the weekly breeding profit of self - bred and self - raised live - hogs was 84.33 yuan/head, down 0.72 yuan. The monthly import volume of pork was 90,000 tons, up 10,000 tons; the average price of white - striped chickens in the main producing areas was 13.7 yuan/kg, up 0.1 yuan [2] 4. Downstream Situation - The monthly slaughter volume of designated live - hog slaughtering enterprises was 3.063 million heads, up 886,000 heads; the monthly value of catering revenue in total retail sales of consumer goods was 423.5 billion yuan, down 131.4 billion yuan [2] 5. Industry News - On May 14, 2025, the daily national live - hog出栏 volume of key breeding enterprises was 267,569 heads, up 4.41% from the previous day. On the supply side, after the festival, breeders were reluctant to sell and control the weight, and the overall出栏 weight was stable, with little supply pressure. However, the price of fat hogs was lower than that of standard hogs, the risk of secondary fattening increased, and the enthusiasm for entry weakened. The pressure caused by the post - poned supply may gradually appear after mid - to - late May. On the demand side, after the festival, the terminal demand decreased, the sales speed of white - striped pork slowed down again, the slaughterhouse operating rate decreased, similar to the same period last year. The demand for Dragon Boat Festival stocking may pick up in the second half of the month, and there were still passive inventory - building phenomena in a few areas [2]

Group 1 - The core viewpoint of the report indicates that the supply pressure in the pig market has eased, leading to price fluctuations, while chicken prices are stabilizing and showing signs of recovery [1][5][30] - The report maintains a positive investment rating for the industry, suggesting a focus on efficiency improvements rather than just scale growth in the long term [5][15] - The report highlights that the agricultural sector has shown an overall increase, with the agricultural and forestry sector index rising by 2.84% week-on-week, outperforming the Shanghai and Shenzhen 300 index [10][11] Group 2 - In the pig farming segment, the number of breeding sows has decreased, with January's breeding sow inventory reported at 40.62 million heads, reflecting a month-on-month decline of 0.40% [17][18] - The price of commodity pigs as of March 13 was 14.57 CNY/kg, showing a week-on-week increase of 0.07%, while the average price of pork was 19.07 CNY/kg, up 0.53% [23][25] - The report notes that the cost of raw materials has shown mixed trends, with soybean meal, corn, wheat, and soy prices reported at 3,458 CNY/ton, 2,262 CNY/ton, 2,429 CNY/ton, and 3,857 CNY/ton respectively, indicating a week-on-week change of -5.05%, +1.50%, +0.20%, and 0.00% [26][27] Group 3 - In the poultry farming segment, the average price of white feathered broilers was 7.11 CNY/kg as of March 14, reflecting a week-on-week increase of 7.89%, while the profit from broiler farming was reported at -0.51 CNY/bird [30][35] - The report indicates that the supply of parent stock chicken is facing uncertainties due to ongoing avian influenza outbreaks abroad, which may support future prices of parent stock chicks [29][31] - The total inventory of grandparent stock chickens was reported at 2.0394 million sets, with a week-on-week increase of 0.24% [32][33]