Investment Rating - Industry rating is maintained at "Outperform the Market" [5] Core Viewpoints - The short-term rebound in raw milk prices does not change the ongoing destocking trend, but a price turning point is anticipated [1] - After significant destocking, beef cattle prices are gradually recovering, with September average prices reaching 25.99 CNY/kg, up 10.7% from the beginning of the year [2] - The rise in beef cattle prices is positively impacting the prices of cull cows, which in September averaged 19.33 CNY/kg, up 19.2% year-to-date [3] Summary by Sections 1) Raw Milk Price Analysis - Despite a short-term price rebound due to holiday stocking and school milk demand, overall prices remain below cost levels, leading to continued industry losses and destocking [1] - The September cow inventory decreased by 0.18% month-on-month, with a cumulative reduction of approximately 8% [1] 2) Beef Cattle Price Analysis - The average price of beef cattle in September was 25.99 CNY/kg, reflecting a 10.7% increase since the start of the year and a 15.6% increase from previous lows [2] - The average price of calves rose to 32.42 CNY/kg, marking a 39% increase from the lowest point in 2024 [2] 3) Impact of Beef Prices on Dairy Companies - The increase in beef cattle prices has led to a rise in cull cow prices, which is expected to improve the financial performance of dairy companies [3] - The trend of narrowing losses from cull cows is likely to continue for an extended period due to the long replenishment cycle in the beef industry [3] 4) Investment Recommendations - The core logic of the sector remains unchanged, with expectations for a price turning point and attractive valuations [4] - Recommended stocks include: Yuran Dairy, China Shengmu, Aoyuan Group, Modern Dairy, and Tianrun Dairy for dairy; and China Shengmu, Guangming Meat, and Fucheng Co. for beef [4]