Investment Rating - The report maintains an investment rating of "Buy-A" for Haida Group and "Buy-B" for Shengnong Development, Wen's Shares, and others [8]. Core Insights - The report emphasizes the return to capacity reduction logic in the breeding sector, suggesting that the pig industry may face pressure in the first half of the year, but this period could also serve as a favorable window for capacity reduction [2][5]. - The report highlights the ongoing decline in pig prices, with significant losses in breeding profits, indicating a challenging environment for pig farmers [3][25]. - The feed industry is experiencing a shift from product competition to competition based on value across the supply chain, leading to market consolidation and a focus on leading companies with R&D and scale advantages [4]. Summary by Sections 1. Market Performance - For the week of March 16-22, the CSI 300 index decreased by 2.19%, while the agriculture sector fell by 4.50%, ranking 17th among sectors. Key sub-industries like pig farming, poultry farming, and animal health showed better performance [3][16]. 2. Industry Data 2.1 Pig Farming - As of March 20, the average prices for external three yuan pigs in Sichuan, Guangdong, and Henan were 9.85, 10.61, and 9.88 yuan/kg, respectively, reflecting declines of 3.90%, 3.19%, and 2.47% week-on-week. The average pork price was 15.98 yuan/kg, down 1.18% [3][25]. - Self-breeding profits were reported at -297.68 yuan/head, a decrease of approximately 14.53 yuan from the previous week, while profits from purchased piglets were -141.48 yuan/head, down about 23.30 yuan [25][41]. 2.2 Poultry Farming - The price of white feather chickens increased to 7.33 yuan/kg, up 1.66% week-on-week, with chicken profits rising significantly to 0.47 yuan/chicken, an increase of 327.27% [41]. 2.3 Feed Processing - The average price of fattening pig feed was 3.39 yuan/kg, up 0.30% week-on-week, while chicken feed prices remained stable at 3.55 yuan/kg [47]. 2.4 Aquaculture - As of March 20, the price of sea cucumbers was stable at 110 yuan/kg, while shrimp prices remained at 280 yuan/kg [52]. 2.5 Crop and Grain Processing - As of March 20, corn prices were 2454.61 yuan/ton, up 0.32% week-on-week, while soybean prices remained stable at 4277.37 yuan/ton [57].

Investment Rating - The report maintains an "Overweight" rating for the agriculture, forestry, animal husbandry, and fishery industry [40] Core Insights - The SW agriculture, forestry, animal husbandry, and fishery industry outperformed the CSI 300 index, rising by 2.41% from February 24 to March 5, 2026, exceeding the index by approximately 2.69 percentage points [11] - The report highlights that about half of the sub-sectors recorded positive returns, with planting, breeding, and agricultural product processing increasing by 7.9%, 2.89%, and 0.06% respectively, while feed, animal health, and fishery sectors saw declines of 0.66%, 2.85%, and 5.35% [12][13] - The overall price of live pigs has decreased, leading to a negative shift in breeding profitability, which is expected to drive further capacity reduction [40] Industry Data Summary - **Pig Farming**: The average price of external three-breed pigs fell from 12.58 CNY/kg to 10.48 CNY/kg between February 20 and March 5, 2026. The cost of corn rose to 2413.73 CNY/ton, while soybean meal slightly decreased to 3126 CNY/ton. As of March 6, 2026, the profit from self-bred pigs was -237.98 CNY/head, and from purchased piglets was -58.89 CNY/head, indicating a decline in profitability [21][23][26] - **Poultry Farming**: The average price of meat chicken and egg chicken chicks increased to 2.85 CNY/chick and 3.5 CNY/chick respectively. The average price of white feather meat chickens was 7.2 CNY/kg, with a profit of 0.18 CNY/chick, showing a slight recovery in profitability [28][31] - **Aquaculture**: The average wholesale price for crucian carp and carp rose to 19.88 CNY/kg and 14.83 CNY/kg respectively as of March 5, 2026 [32] Industry News - The Ministry of Agriculture and Rural Affairs is focusing on modernizing distant ocean fisheries, emphasizing compliance with international regulations and enhancing international cooperation [34][36] Company Insights - **Muyuansheng**: In February 2026, the company sold 4.603 million pigs, with a sales revenue of 6.405 billion CNY, reflecting a year-on-year decline of 23.98% [37] - **Wens Foodstuff Group**: The company reported sales of 84.7651 million meat chickens in February 2026, generating 2.336 billion CNY in revenue, with a year-on-year increase in sales of white feather chicks [39]

Group 1 - The average price of external three-yuan pigs in China on February 26, 2026, is 10.81 yuan/kg, an increase of 0.06 yuan/kg from the previous day [1] - The average price of piglets is 25.42 yuan/kg, a decrease of 0.01 yuan/kg from the previous day [1] - The average price of white strip meat is 15.10 yuan/kg, a decrease of 0.15 yuan/kg from the previous day [1] Group 2 - Recent fluctuations in pig prices have led to a slight increase of 0.06 yuan/kg, with market sentiment showing both stability and optimism [2] - The ongoing decline in pig prices has prompted individual farmers to engage in second fattening behaviors, while losses from self-breeding have intensified [2] - The price difference between northern and southern regions is expected to gradually narrow, with short-term price declines being limited [2]

Group 1: Report Industry Investment Rating - No relevant content Group 2: Core View of the Report - The main contract of live hog futures, LH2605, closed up 1.55% to 1,1465 yuan/ton, with a high basis. However, the spot market declined under pressure, and the average ex-farm price of ternary live hogs nationwide fell to 10.74 yuan/kg. After the Spring Festival, the market showed a pattern of strong supply and weak demand: the enthusiasm of the breeding end for slaughter was high, and the slaughter volume of key enterprises increased by nearly 15% month-on-month; while the terminal consumption mainly focused on digesting holiday inventories, with insufficient demand support. Although the slaughter volume rebounded, it was difficult to digest the supply pressure. In addition, the losses at the breeding end intensified, with the average loss per head of self-breeding and self-raising exceeding 150 yuan. Overall, the spot market is expected to operate weakly in the short term under the dual pressure of supply release and weak demand. Attention should be paid to the subsequent slaughter rhythm and consumption recovery [3]. Group 3: Summary According to Related Catalogs Futures Market - **Prices**: The previous day's closing prices of live hog futures contracts in January, March, May, July, September, and November were 13,340 yuan, 10,395 yuan, 11,465 yuan, 12,345 yuan, 13,310 yuan, and 13,265 yuan respectively. The price increases were 195 yuan, 40 yuan, 200 yuan, 260 yuan, 230 yuan, and 225 yuan respectively, with increases of 1.48%, 0.39%, 1.78%, 2.15%, 1.76%, and 1.73% respectively [2]. - **Trading Volume and Open Interest**: The trading volumes were 1,815, 14,972, 92,718, 15,843, 11,884, and 5,222 respectively. The open interests were 3,814, 24,796, 154,467, 52,808, 41,868, and 25,712 respectively. The changes in open interests were 805, -3,216, 1,934, 1,694, 2,979, and 1,705 respectively [2]. - **Spreads**: The current spreads between January - March, March - May, May - July, July - September, September - November, and November - January were 2,945 yuan, -1,070 yuan, -880 yuan, -965 yuan, 45 yuan, and -75 yuan respectively, compared with the previous values of 2,790 yuan, -910 yuan, -820 yuan, -995 yuan, 40 yuan, and -105 yuan respectively [2]. Spot Market - **Prices**: The current spot prices in Henan, Sichuan, Hunan, Guangdong, Guangxi, and Liaoning were 10.99 yuan/kg, 10.87 yuan/kg, 10.77 yuan/kg, 11.21 yuan/kg, 10.52 yuan/kg, and 10.45 yuan/kg respectively, with decreases of 0.08 yuan, -21.97 yuan, -0.15 yuan, -0.27 yuan, -0.18 yuan, and -0.12 yuan respectively compared with the previous values [2]. Warehouse Receipts - The number of warehouse receipts was 1,156, with no change compared with the previous two days [2].

Group 1 - The average price of external three yuan live pigs in China on February 25, 2026, was 10.75 yuan/kg, a decrease of 0.17 yuan/kg from the previous day [1] - The average price of piglets was 25.43 yuan/kg, down 0.04 yuan/kg from the previous day [1] - The average price of white strip meat was 15.25 yuan/kg, a decline of 0.35 yuan/kg from the previous day [1] Group 2 - The market for live pigs continues to decline, with the national average price dropping by 0.17 yuan/kg, and prices in the Xinjiang region falling below 10 yuan/kg [2] - The supply of pigs is relatively abundant due to the resumption of outflow from farms, while demand remains weak, leading to downward pressure on prices [2] - Despite the price drop below 11 yuan/kg, there is an increase in reluctance to sell among smallholders, and low prices are encouraging secondary fattening, providing some support for price stabilization [2]

Report Summary 1. Report Industry Investment Rating - Not provided in the given content 2. Core View of the Report - The pig market shows a pattern of strong supply and weak demand. If there is no significant boost in the demand side, pig prices may continue the weak and volatile trend in the short term [3] 3. Summary by Relevant Catalog Futures Market - **Price Changes**: The previous day's closing prices for January, March, May, July, September, and November contracts were 13145, 10355, 11265, 12085, 13080, and 13040 respectively. Compared with the prices two days ago, the changes were 5, -385, -235, -135, -60, and -25, with corresponding changes of 0.04%, -3.58%, -2.04%, -1.10%, -0.46%, and -0.19% [2] - **Trading Volume and Open Interest**: The trading volumes were 735, 15726, 78533, 9582, 6360, and 2027 respectively, and the open interests were 3009, 28012, 152533, 51114, 38889, and 24007. The changes in open interest were 336, -2065, 15873, 1696, 1867, and 454 [2] - **Price Spreads**: The current values of the spreads between January - March, March - May, May - July, July - September, September - November, and November - January were 2790, -910, -820, -995, 40, and -105 respectively, compared with the previous values of 2400, -760, -720, -920, 75, and -75 [2] Spot Market - **Price Changes**: The current spot prices in Henan, Sichuan, Hunan, Guangdong, Guangxi, and Liaoning were 11.32, 11.47, 11.2, 11.74, 11.27, and 10.92 yuan/ton respectively. Compared with the previous values, the changes were -1.17, -22.77, -0.09, 0.07, -0.47, and -0.58 [2] Warehouse Receipts - **Quantity and Change**: The number of warehouse receipts the previous day was 1156, with an increase of 129 compared to two days ago [2] Market Analysis - **Supply and Demand**: The output of key breeding companies reached 219,300 heads, a month - on - month increase of 8.15%. The slaughter volume of slaughtering enterprises was 98,800 heads, a month - on - month increase of 20.89%, indicating a concentrated release of supply pressure [3] - **Profit Situation**: The average loss per head in the self - breeding and self - raising mode was 135.59 yuan, and the loss per head in the mode of purchasing piglets was 71.54 yuan [3]

Group 1 - The average price of external three-yuan live pigs in China on February 6, 2026, is 12.14 yuan/kg, an increase of 0.03 yuan/kg from the previous day [1] - The average price of piglets is 25.54 yuan/kg, up by 0.01 yuan/kg compared to the previous day [1] - The average price of white strip meat is 16.66 yuan/kg, which has increased by 0.07 yuan/kg from the previous day [1] Group 2 - The market sentiment is improving due to pre-holiday stocking expectations, leading to increased purchasing activity from slaughter enterprises [2] - There is a widening price gap between northern and southern regions, which is causing an increase in the transfer of pig sources from the north to the south [2] - Short-term expectations indicate an increase in the output from large-scale farms, but the overall upward momentum for pig prices remains limited due to pressure in high-price areas [2]

Group 1: Report Industry Investment Rating - No relevant content Group 2: Core View of the Report - The main contract of live hog futures, LH2605, closed up at 1,1735 yuan/ton, while the spot market continued to be weak, with the average ex-farm price of ternary live hogs in the country falling to 12.08 yuan/kg, and the market bearish sentiment was obvious. The supply pressure remained and the demand was insufficient, the profit level shrank significantly, and the industry was under obvious pressure. In the short term, the market sentiment was weak, and attention should be paid to the slaughter rhythm of retail farmers and the adjustment plans of group enterprises [3] Group 3: Summary According to the Catalog Futures Market - The previous day's closing prices of live hog futures in January, March, May, July, September, and November were 13,355 yuan, 11,150 yuan, 11,735 yuan, 12,295 yuan, 13,210 yuan, and 13,130 yuan respectively, with price changes of 100 yuan, -10 yuan, 135 yuan, 125 yuan, 155 yuan, and 170 yuan, and price change rates of 0.75%, -0.09%, 1.16%, 1.03%, 1.19%, and 1.31% respectively. The trading volumes were 525, 29,122, 70,275, 7,444, 8,803, and 3,263 respectively, and the open interests were 1,783, 83,841, 145,975, 50,455, 37,066, and 22,210 respectively, with changes in open interests of 252, -8,400, 8,354, 320, 554, and 1,213 respectively [2] - The current spreads between January - March, March - May, May - July, July - September, September - November, and November - January were 2,205 yuan, -585 yuan, -560 yuan, -915 yuan, 80 yuan, and -225 yuan respectively, compared with the previous values of 2,095 yuan, -440 yuan, -570 yuan, -885 yuan, 95 yuan, and -295 yuan respectively [2] Spot Market - The current spot prices of live hogs in Henan, Sichuan, Hunan, Guangdong, Guangxi, and Liaoning were 12.22 yuan/kg, 11.77 yuan/kg, 12.1 yuan/kg, 12.15 yuan/kg, 12.1 yuan/kg, and 12.23 yuan/kg respectively, with price changes of -0.32 yuan, -0.2363 yuan, -0.26 yuan, -0.26 yuan, -0.38 yuan, and -0.36 yuan respectively compared with the previous values [2] Warehouse Receipts - The number of warehouse receipts the previous day was 647, an increase of 547 compared with the day before the previous day [2]

Investment Rating - The report maintains an "Overweight" rating for the agriculture, forestry, animal husbandry, and fishery industry [1][41]. Core Insights - The SW agriculture, forestry, animal husbandry, and fishery industry slightly underperformed the CSI 300 index, with a decline of 0.07% from January 16 to January 29, 2026, lagging behind the index by approximately 0.12 percentage points [3][10]. - Most sub-sectors recorded positive returns during the same period, with notable increases in planting (9.25%), animal health (4.71%), agricultural product processing (4.12%), and fishery (1.82%), while feed and breeding sectors saw declines of 0.02% and 2.84%, respectively [3][13][14]. - The overall price-to-book (PB) ratio for the industry was approximately 2.66 times as of January 29, 2026, indicating that the industry is at a relatively low valuation level compared to historical averages, positioned at about 59.9% of the valuation center since 2006 [3][18]. Industry Key Data - **Pig Farming**: - The average price of external three yuan pigs fluctuated from 12.76 CNY/kg to 13.24 CNY/kg before dropping to 12.52 CNY/kg during the reporting period [3][22]. - The breeding sow inventory reached 39.61 million heads by the end of December 2025, a decrease of 0.73% from the previous month, remaining within the normal range of 39 million heads [3][22]. - The profit from self-bred pigs was 25.1 CNY/head, while the profit from purchased piglets was 124.13 CNY/head, both maintaining positive profitability [3][26]. - **Poultry Farming**: - The average price of broiler chicks was 2.31 CNY/chick, showing a slight decrease, while the average price for layer chicks was 3.2 CNY/chick, which saw a minor increase [3][28]. - The average price for white feather broilers was 7.74 CNY/kg, with a profit of 0.39 CNY/chick, indicating a recovery in profitability [3][32]. - **Aquaculture**: - The average wholesale price for crucian carp and carp was stable, with prices at 19.4 CNY/kg and 13.88 CNY/kg, respectively, showing slight increases [3][33]. Industry Important News - The Ministry of Agriculture and Rural Affairs held a meeting to discuss stabilizing beef production and alleviating dairy industry challenges, emphasizing the need for effective policies to support these sectors [3][35]. - A meeting was also held to coordinate efforts in the seed industry revitalization action, focusing on enhancing domestic seed security and promoting technological independence [3][38]. Company Highlights - Key companies to watch include: - Muyuan Foods (牧原股份, 002714): A leading player in pig farming with cost and scale advantages [3][42]. - Haida Group (海大集团, 002311): A leading feed company expected to maintain steady market share growth [3][42]. - Shengnong Development (圣农发展, 002299): A leader in the white feather broiler industry with advantages in seed sources [3][42]. - Reap Bio (瑞普生物, 300119): A leader in the animal health sector with a growing product matrix for pet health [3][42]. - Longping High-Tech (隆平高科, 000998): A leading seed company with advanced transgenic reserves [3][42].

Investment Rating - The report maintains an "Overweight" rating for the agriculture, forestry, animal husbandry, and fishery industry [1][46] Core Insights - The profitability of pig farming has shown signs of recovery, with self-breeding pig farming profits turning positive [30] - The industry has slightly underperformed compared to the CSI 300 index, with a decline of 0.72% from January 5 to January 15, 2026, lagging behind the index by approximately 3.34 percentage points [14] - The report highlights the potential for price recovery in pig farming due to seasonal demand, and emphasizes the importance of capacity reduction in the breeding sector [46][48] Industry Performance Overview - The SW agriculture, forestry, animal husbandry, and fishery industry index has a current PB ratio of approximately 2.63, indicating a slight decline in valuation and positioning at about 59.2% of the historical average since 2006 [21] - Among the sub-sectors, animal health, fishery, agricultural product processing, and planting recorded positive returns, with increases of 8.52%, 4.59%, 1.77%, and 0.45% respectively, while feed and breeding sectors saw declines of 0.99% and 2.34% [17][18] Key Industry Data - The average price of external three-breed pigs fluctuated from 12.86 CNY/kg to 12.48 CNY/kg and then rebounded to 12.76 CNY/kg between January 2 and January 15, 2026 [22] - As of January 15, 2026, the average price of corn was 2363.82 CNY/ton and soybean meal was 3184 CNY/ton, both showing a recent increase [27] - The profit for self-breeding pig farming reached 7.39 CNY/head, while the profit for purchased pig farming was 48.35 CNY/head, indicating a shift from loss to profit [30] Company Insights - Key companies to watch include Muyuan Foods (002714), Wens Foodstuff Group (300498), and Shengnong Development (002299), which are positioned well for potential growth in the sector [48][49] - The report notes that the domestic pet market has growth potential, with exports expected to maintain rapid growth, highlighting opportunities in leading domestic companies [48]