Investment Rating - The industry investment rating is "Recommended" with an expectation that the industry index will exceed the benchmark index by more than 5% in the next 3-6 months [53]. Core Insights - The report indicates that the prices of broilers and chicks have reached a bottom and are beginning to rebound, although the losses in the breeding sector have widened [1][2]. - In July, the loss from broiler farming was 2.59 yuan per bird, and the loss from hatcheries was 0.23 yuan per bird, both showing an increase in loss compared to previous months [2][43]. - The report highlights a recovery in chick prices after hitting a low of 0.73 yuan per chick, with a subsequent increase of 0.10 yuan per chick over 15 days due to supply shortages and rising broiler prices [8][11]. Industry Overview - The total market capitalization of the industry is approximately 1,331.25 billion yuan, with 101 listed companies [3]. - The absolute performance of the industry over the past month is 3.5%, with a relative performance of 3.9% [4]. Price Trends - The average price of white feather broilers in July was 3.21 yuan per kg, reflecting a year-on-year decrease of 12.30% and a month-on-month decrease of 8.55% [11]. - The average price of chicken products was 8535.88 yuan per ton, down 8.94% year-on-year and 3.04% month-on-month [11]. Sales Performance - In July, the sales volume of broiler meat for Shengnong Development was 15.87 million tons, up 22.83% year-on-year, while the sales volume for Xiantan Co. was 5.96 million tons, up 31.28% year-on-year [19][28]. - The sales revenue for Yisheng Co. in July was 1.01 billion yuan, down 46.39% year-on-year, while Shengnong Development's chicken meat sales revenue was 14.90 billion yuan, up 14.44% year-on-year [14][15]. Production Capacity - The average stock of grandparent stock chickens in July 2025 was 1.4 million sets, an increase of 7.3% year-on-year, while the stock of backup grandparent stock chickens decreased by 8.5% year-on-year [32][33]. - The average price of parent stock chicks in July was 47.66 yuan per set, with a slight decrease to 47.21 yuan per set in the latest week [35][37].