Investment Rating - The overall industry rating is "Positive" for the agriculture sector, indicating expected returns above the CSI 300 index by more than 5% in the next six months [6][51]. Core Views 1. **Livestock Industry Chain** - The swine market is experiencing rising epidemic risks and policy support, which is expected to enhance the motivation for capacity reduction. The average price of live pigs is currently 13.71 CNY/kg, down 0.62 CNY from last week, while the average price for 15 kg piglets is 31.24 CNY/kg, down 1.48 CNY [5][19]. - The operating rate of large-scale slaughterhouses has increased to 31.9%, up 0.36 percentage points from last week and 7.26 percentage points year-on-year. The total output of pigs from 16 listed companies reached 100.75 million heads, a year-on-year increase of 16.9% [5][19]. - The number of breeding sows has decreased to 40.43 million heads, down 370,000 from the peak last year. The average profit per head for self-bred pigs is 45 CNY, an increase of 2 CNY from last week [6][20]. 2. **Poultry Industry** - Chicken prices are experiencing fluctuations, with the average price for broiler chickens at 3.54 CNY/lb, up 0.13 CNY from last week. The average price for white feather chickens is 13.9 CNY/kg, up 0.2 CNY [21][23]. - The industry is at a historically high capacity level, with limited imports in the first seven months of the year. The profitability per chicken has turned positive at 0.62 CNY [21][23]. - The yellow chicken market is also seeing price declines, with average prices at 9.77 CNY/kg for Lihua yellow chicken, down 0.02 CNY from last month [23][24]. 3. **Seed and Planting Industry** - The seed industry is benefiting from ongoing policy optimization and the promotion of genetically modified organisms (GMOs). The long-term investment value of leading seed companies is highlighted as they are at historical low valuations [10][24]. - Grain prices are experiencing short-term adjustments but are expected to rise in the medium term due to reduced imports and adverse weather conditions. The average purchase price for corn is 2441 CNY/ton, down 4 CNY from last week [12][24]. Company Recommendations - Recommended companies include: - Zhongchong Co., Ltd. - Buy [3] - Muyuan Foods Co., Ltd. - Buy [3] - Suqian Agricultural Development Co., Ltd. - Buy [3]

Investment Rating - The overall industry investment rating is "Positive" [48] Core Viewpoints - The report emphasizes the impact of anti-involution policies on capacity regulation, which is beneficial for the livestock industry [6][22] - The agricultural sector has shown strong performance, with the agricultural index rising by 3.61% compared to the broader market indices [27] - The report highlights the long-term investment value of companies in the livestock sector, as their valuations are at historical lows [23] Summary by Relevant Sections Livestock Industry - **Swine**: The national average price for live pigs is 14.12 CNY/kg, down 0.15 CNY from last week. The average price for 15 kg piglets is 33.86 CNY/kg, down 0.17 CNY [6][22] - **Poultry**: The average price for white feather broilers is 3.35 CNY/lb, up 0.15 CNY from last week. The average price for white chickens is 13.7 CNY/kg, up 0.3 CNY [9][22] - **Yellow Chickens**: The average price for yellow chickens is 9.79 CNY/kg, down 0.88 CNY from last month. The industry is experiencing a rise in production capacity [10][25] - **Animal Health**: The animal health industry is recovering from a low point, with significant performance improvements noted in major companies [11][25] Planting Industry - **Seed Industry**: Policies are continuously improving, and the commercialization of genetically modified technology is accelerating, which is expected to boost sales and prices for quality seed companies [12][26] - **Planting**: Grain prices are experiencing short-term adjustments, with corn averaging 2441 CNY/ton, down 10 CNY from last week, while wheat is at 2442 CNY/ton, up 1 CNY [13][26] Recommended Companies - **Buy Ratings**: - Zhongchong Co., Ltd. [4] - Muyuan Foods [4] - Suqian Agricultural Development [4]