Core Viewpoint - The livestock farming industry has transitioned from a rapid growth phase to a stable development phase, with long-term capacity regulation becoming the new norm, leading to improved profit margins for quality farming enterprises [1] Group 1: Industry Overview - The livestock ETF (159865) saw a net inflow of 74 million units, indicating strong capital interest in livestock assets [1] - Long-term capacity regulation is now a standard practice in the livestock farming industry, which is expected to enhance the profit base and earnings potential of quality farming companies [1] Group 2: Performance Insights - The third quarter showed a divergence in profitability within the livestock sector, with quality farming enterprises still achieving commendable performance [1] - The CSI Livestock Index (930707), which the livestock ETF tracks, includes listed companies involved in livestock farming and feed processing, reflecting the overall performance of the livestock-related securities [1]

Core Insights - The livestock ETF (159865) has seen significant inflows, with 131 million shares traded and a net inflow of 75 million shares, indicating strong capital interest in livestock assets [1] - The pig price has declined, leading to industry-wide losses and a substantial year-on-year drop in the performance of pig farming companies, with supply increasing in Q3 2025 while consumption remains stagnant [1] - The outlook suggests that losses in livestock farming, combined with policy restrictions, will accelerate capacity reduction; however, in the medium to long term, the profitability and stability of high-quality production capacity are expected to improve significantly, highlighting the potential for value reassessment of leading pig farming companies [1] Industry Overview - The livestock ETF (159865) tracks the China Securities Livestock Index (930707), which selects listed companies involved in livestock farming and feed processing to reflect the overall performance of the livestock sector [1] - The China Securities Livestock Index encompasses various sub-sectors, including livestock farming, feed, and animal health, demonstrating strong industry representation [1]

Core Viewpoint - The livestock ETF (159865) has seen significant capital inflow, indicating strong investor interest in livestock assets, with a net inflow of 377 million shares [1] Group 1: Market Trends - By the first half of 2025, an increase in pig supply is expected, leading to a slight year-on-year decline in pig prices [1] - The performance of listed companies in the pig farming sector is anticipated to show significant results in the 2025 mid-year reports, driven by cost reduction and efficiency improvements [1] Group 2: Company Performance - Leading pig farming companies are achieving profits per head that far exceed the industry average due to their competitive breeding costs [1] - These top companies are entering a new development phase characterized by reduced debt, slowed capacity expansion, decreased capital expenditures, and significantly increased free cash flow [1] - The strong performance and shareholder returns of leading pig farming companies are leading to a certain revaluation of their market value [1] Group 3: Index Information - The livestock ETF (159865) tracks the China Securities Livestock Index (930707), which selects listed companies involved in livestock farming and feed processing to reflect the overall performance of the livestock sector [1] - The China Securities Livestock Index covers multiple sub-sectors, including livestock farming, feed, and animal health, demonstrating strong industry representation [1]