Investment Rating - Industry rating: Outperform the market (maintained rating) [9] Core Insights - The pet industry is experiencing significant growth, with the Asia Pet Expo showcasing over 2,600 exhibitors and 20,000 brands, indicating a thriving market driven by globalization and innovation [2][13] - China's pet food exports have shown continuous growth, with 201,000 tons exported from January to July 2025, reflecting a year-on-year increase of 6.64% [14] - The pig farming sector is facing challenges, with the average pig price at 13.82 yuan/kg, a decrease of 3.63% from the previous week, and the average weight of pigs reaching a historical high [15][16] - The dairy sector is poised for a recovery, with the original milk price expected to rebound as production capacity decreases after a prolonged period of losses [17][18] - The poultry sector is focusing on breeding gaps, with a significant decline in the import of breeding chickens due to avian influenza concerns, which may impact future supply [19][20] - The planting sector emphasizes food security and the importance of biotechnology, with a focus on high-yield and resilient crop varieties [25] - The feed sector is recommended for investment, particularly in companies like Haida Group, which is expected to benefit from market recovery and increased market share [26] Summary by Sections Pet Sector - The Asia Pet Expo has reached a record scale of 310,000 square meters, highlighting the industry's vitality and innovation potential [2][13] - Pet food exports from China have increased, with a total of 201,000 tons exported in the first seven months of 2025, showing a year-on-year growth of 6.64% [14] - Recommended companies include pet food brands like Guibao Pet, Zhongchong Co., and Petty Co. [14] Pig Sector - The average pig price is currently at 13.82 yuan/kg, with a year-to-date low in profitability for pig farming [15][16] - The average weight of pigs is at a historical high, indicating supply pressures [15] - Recommended companies include leading pig farming firms such as Wens Foodstuffs Group and Muyuan Foods [16] Dairy Sector - Yuran Dairy reported stable performance with a revenue of 10.3 billion yuan, showing a year-on-year growth of 2.3% [17] - The dairy industry is expected to see a recovery as production capacity decreases [18] - Recommended companies include Yuran Dairy and China Shengmu Organic Milk [18] Poultry Sector - The poultry sector is facing challenges with breeding imports, particularly for white chickens, due to avian influenza [19][20] - Recommended companies include Shennong Development and Yisheng Livestock [20] Planting Sector - The focus is on food security and biotechnology, with an emphasis on high-yield and resilient crop varieties [25] - Recommended companies include Longping High-Tech and Dabeinong Technology Group [25] Feed Sector - Haida Group is highlighted as a key investment opportunity due to its increasing market share and performance [26] - The animal health sector is also recommended, particularly companies like Kexin Biological [27]

8月2日，海关总署发布最新《符合评估审查要求的国家或地区输华肉类产品名单》，对泰国禽肉企业实 施严格监管，其中，1家被撤销资质，4家暂停进口。更值得关注的是，中国海关已要求畜牧发展部对另 外17家禽肉工厂展开紧急核查，评估其是否符合中国标准并核算实际产能。业内透露，若检查不达标， 这些工厂也可能面临输华禁令。 中证报表示，泰国是对华出口鸡肉前三国家。另外，巴西虽然禽流感疫情已经结束，但我国进口禁令仍 未取消。受此消息影响，近两天爪类（长爪类、凤爪类）、翅中类、全翅类疯涨。8月2日，多样本点上 调500-1000元/吨，甚至还有二次调价，再度掀起了一波涨价潮。展望8月，供给端因前期孵化场亏损去 产减量，导致鸡苗出苗量减少、而养殖环节补栏谨慎，毛鸡出栏量预计显著收缩；需求端受开学备货带 动需求季节性回暖，供需拉动作用下，预计鸡价有望延续涨势。 公司方面，据中证报表示，建议关注圣农发展、民和股份等。 *免责声明：文章内容仅供参考，不构成投资建议 *风险提示：股市有风险，入市需谨慎 ...

Investment Rating - Investment rating: Positive (maintained) [4] Core Viewpoints - The report emphasizes the high-quality development of the pig industry, recommending "platform + ecological" service-oriented enterprises like Dekang Agriculture and Animal Husbandry [4][18] - The Ministry of Agriculture held a meeting on July 23 to promote high-quality development in the pig industry, focusing on reducing breeding capacity, controlling new production capacity, and enhancing the competitiveness of the entire industry chain [6][60] - The report indicates that the pig price is currently at 14.1 CNY/kg, with a slight decrease in average weight to 128.48 kg, and a 15 kg piglet priced at 542 CNY/head, reflecting weak demand and a slight price drop [5][17] Summary by Sections 1. Pig Industry - The latest pig price is 14.1 CNY/kg, with a slight decrease in average weight to 128.48 kg, and a 15 kg piglet priced at 542 CNY/head. Weak demand has led to a slight price drop, with a 0.8% decrease in the national pig inventory in June, indicating a potential reduction in pig output in July and August [5][17] - The Ministry of Agriculture's meeting emphasized high-quality development, including reducing breeding capacity, strengthening disease prevention, and promoting resource utilization [6][18] - The report suggests that companies with cost advantages and strong connections with farmers may enjoy excess profits and valuation premiums, recommending Dekang Agriculture and Animal Husbandry and leading pig farming companies like Muyuan Foods and Wens Foodstuffs [18] 2. Poultry Industry - The price of chicken seedlings in Yantai is 2.5 CNY/chick, up 39% month-on-month but down 28% year-on-year. The price of broiler chickens is 3.43 CNY/kg, up 3.9% month-on-month but down 11.4% year-on-year. Demand pressure is easing, and if supply contracts in Q3, prices may rebound [19] - The report highlights the ongoing contradiction of "high capacity, weak consumption" in the white feather chicken industry, with losses forcing breeding farms to reduce capacity [19] 3. Feed Industry - The report recommends Haida Group due to the recovery of the industry, improved management effects, and increased capacity utilization, which is expected to lead to growth in volume and profit [21] 4. Pet Industry - In June, exports of dog and cat food decreased by 13.8% year-on-year, totaling 29,000 tons, with revenue of 820 million CNY (approximately 110 million USD), down 20.2% year-on-year [22][24] - The report notes that while there are concerns about export fluctuations due to tariff uncertainties, long-term prospects remain positive for domestic brands like Guibao and Zhongchong [24] 5. Agricultural Products - The report discusses uncertainties in soybean imports for Q4 and the upward trend in rubber prices, with natural rubber prices breaking through 15,000 CNY/ton [28]

Investment Rating - The industry investment rating is "Positive" (maintained) [4] Core Viewpoints - The pig price has retreated from its high, with the latest price at 14.94 CNY/kg and the average weight at 128.64 kg. The complete cost for leading enterprises has decreased to around 12 CNY/kg, indicating a potential for profit maintenance and valuation recovery [6][17][18] - The report emphasizes a shift from cyclical thinking to focusing on financial performance, suggesting that investment should transition from "cyclical thinking" to "quality and price" [18] - The report recommends focusing on companies with a "platform + ecosystem" model, highlighting DeKang Agriculture and Livestock as a representative, along with leading pig farming companies such as Muyuan Foods and Wens Foodstuff Group [18] Summary by Sections 1. Pig Industry - The latest pig price is 14.94 CNY/kg, with a slight increase in average weight to 128.64 kg. The price of 15 kg piglets remains stable at around 530 CNY/head. The industry is experiencing a short-term rebound in prices after a slight decline [6][17] - The official number of breeding sows in May was 40.42 million, a year-on-year increase of 1.15%, indicating a stable production capacity [7][17] - The report suggests that the government's commitment to stabilizing pig prices is strong, and capacity regulation may continue to increase [7][17] 2. Poultry Industry - The price of parent stock chicks remains high, with the latest price at 47.93 CNY, a week-on-week increase of 5.25%. The price of broilers is 2.95 CNY/kg, down 12% week-on-week and 18% year-on-year [19] - The industry faces a "high capacity, weak consumption" contradiction, leading to a reduction in production capacity among breeding farms [19] - The report highlights two main lines of focus: quality imported breeding stock leaders and fully integrated industry leaders [19] 3. Feed Industry - The report recommends Hai Da Group, noting a cash flow turning point and high overseas growth potential. The demand for aquaculture feed is expected to recover in 2025 [20][22] - The report indicates that the domestic capital expansion phase has ended, and leading companies are entering a new phase of stable cash flow [21][22] 4. Pet Industry - The report discusses the impact of potential tariffs on the pet industry, suggesting that the actual impact will be limited due to high profit margins and overseas factory layouts [23] - Companies with strong performance in their own brands, such as Guibao and Zhongchong, are highlighted as key focuses [23] 5. Agricultural Products - The USDA report indicates a slight reduction in soybean planting area for 2025, with a forecast of 83.4 million acres, a year-on-year decrease of 4% [24] - The report emphasizes that agricultural products are less affected by tariffs, and a reduction in imports may help prices rise from low levels [24] 6. Market and Price Situation - The Shanghai and Shenzhen 300 Index closed at 3982 points, up 1.54% from the previous week. The Agricultural and Forestry Index closed at 2729 points, up 2.55% [25][28] - The report notes that the aquaculture sector performed the best with a 5.13% increase [25]

Investment Rating - The investment rating for the agriculture, forestry, animal husbandry, and fishery industry is "Positive" (maintained) [1] Core Viewpoints - The report emphasizes the ongoing capacity regulation policies in the pig industry, recommending a "platform + ecosystem" model represented by Dekang Agriculture and Animal Husbandry [3] - The report highlights the need to shift from a cyclical perspective to focusing on financial performance, suggesting that investment should transition from "cyclical thinking" to "quality and price" [6][17] - The report identifies key investment opportunities in the pig farming sector, particularly in leading companies with cost advantages, such as Muyuan Foods and Wens Foodstuffs [6][17] Summary by Sections 1. Pig Industry - In May, the national breeding sow inventory reached 40.42 million heads, a year-on-year increase of 1.15% and a month-on-month increase of 0.1%, indicating a stable capacity within the green regulatory range [6][16] - The average pig price rose to 14.66 CNY/kg, with the complete cost for leading enterprises dropping to around 12 CNY/kg, suggesting a favorable profit outlook [5][16] - The report recommends focusing on companies with strong financial performance, such as Dekang Agriculture and Animal Husbandry, Muyuan Foods, and Wens Foodstuffs [6][17] 2. Poultry Industry - The price of parent chicken seedlings remains high, with the average price at 47.93 CNY, reflecting a 5.25% increase [7][18] - The report notes a persistent contradiction between high production capacity and weak consumption in the white feather chicken industry, leading to potential market share gains for integrated enterprises [7][18] - Key investment targets include leading companies in imported breeding stock and fully integrated enterprises like Yisheng and Shengnong Development [7][18] 3. Feed Industry - The report highlights a recovery in aquaculture profitability due to rising fish prices and falling feed prices, with expectations for a rebound in demand for aquaculture feed in 2025 [8][19] - The leading companies are expected to improve their market share and cash flow as the capital expansion phase ends [8][19][21] 4. Pet Industry - The report indicates strong performance from domestic pet brands during the Tmall 618 sales event, with brands like Guibao and Zhongchong showing significant growth [11][22] - The competitive landscape is intensifying, with a focus on brands that demonstrate continuous high growth and strong overseas performance [11][22] 5. Agricultural Products - The report notes a significant reduction in grain imports, with a 29.7% year-on-year decrease in the first five months of 2025, which may support price recovery [12][29] - The report emphasizes the importance of domestic supply and the need for price increases to enhance farmers' income [12][29] 6. Market and Price Situation - The report states that the Shanghai and Shenzhen 300 Index closed at 3922 points, reflecting a 1.95% increase, while the agriculture index rose by 0.80% [30][31] - The report highlights the overall stability in the pig market, with average prices showing a slight decline due to seasonal consumption effects [52]

Group 1: Pet Economy - The pet economy continues to show high growth, with over 400 pet brands achieving sales growth of over 100% during the "618" shopping festival, and pet transaction users increasing by 32% year-on-year, with new pet owners rising by 39% [3] Group 2: Pork Prices - As of June 20, the average price of external three yuan pigs in China was 14.22 yuan/kg, reflecting a week-on-week increase of 1.43%. The average price of 15 kg piglets was 31.85 yuan/kg, down 3.16% week-on-week [4] - The average weight of market pigs was 128.28 kg, down 0.54 kg week-on-week, with a national frozen product inventory rate of 14.04%, up 0.15 percentage points [4] Group 3: Chicken Prices - As of June 20, the price of white feather broilers was 7.12 yuan/kg, down 2.06% week-on-week, while the price of chick was 1.86 yuan/bird, down 32.12% week-on-week [5][6] - The decline in chicken prices is attributed to cautious purchasing by distributors and losses faced by slaughter enterprises, leading to a sustained low price environment [5] Group 4: Grain Prices - As of June 20, corn prices averaged 2417.06 yuan/ton, up 0.47% week-on-week; soybean meal averaged 3015.14 yuan/ton, up 1.59%; and wheat averaged 2441.67 yuan/ton, up 0.46% [7] - Corn prices are supported by adverse weather affecting supply and traders' pricing strategies, while soybean meal prices are influenced by supply concerns from the U.S. and geopolitical tensions in the Middle East [7]

Summary of Conference Call Records Industry Overview - The records focus on the pig farming industry in China, specifically the market dynamics of pork prices and related agricultural products [1][5]. Key Points and Arguments - **Pork Prices**: As of the fourth week of May, the price of white strip pork was 14.7 yuan/kg, a decrease of 12.6% month-on-month. The average slaughter weight was 91.9 kg, down by 0.2 kg [1]. - **Poultry Prices**: Chick prices rose to 2.9 yuan each, while the price of broiler chickens increased to 7.4 yuan/kg. However, chicken meat prices fell to 8.85 yuan/kg [1][3]. - **Grain Market**: Corn prices increased by 0.2% to 2,380 yuan/ton, while wheat prices decreased by 0.4% to 2,453 yuan/ton. The price of japonica rice remained stable at 2,864 yuan/ton [1][3]. - **Soybean Market**: The soybean market showed weakness, with the CBOT soybean closing down by 2.4 points, and soybean meal prices fell by 1.7% to 2,975 yuan/ton [1][3]. - **Palm Oil and Sugar**: Domestic palm oil prices rose by 0.3% to 8,628 yuan/ton, while Malaysian palm oil increased by 1.3% to 3,878 ringgit/ton. Domestic sugar prices remained stable at 6,160 yuan/ton, while international sugar prices fell by 1.2% to 17.1 cents/pound [1][4]. Market Outlook - The pig market in 2025 is expected to differ from previous downturn cycles, with stable prices and ongoing profitability. The self-breeding and self-raising model remains profitable, albeit at lower levels [5]. - The actual downward pressure on prices is less severe than anticipated, although the futures market remains pessimistic due to expected increases in production capacity and weight [5]. - The breeding sow population shows little fluctuation, indicating rational management in response to future uncertainties and the effects of scale [5]. Investment Recommendations - Despite overall weak profitability in the industry, leading companies such as Muyuan, Wens Foodstuffs, and Shennong have significant cost advantages, with costs just above 12 yuan/kg, below the industry average of approximately 14.5 yuan/kg [3][6]. - It is suggested to focus on stocks of these leading companies during the off-season, as they present potential for valuation reassessment and good cost-performance ratios [7]. Additional Insights - The trend of increasing weight since 2023 has constrained price expectations, but a decline in weight is anticipated as summer approaches, which could positively impact future prices [2][5]. - Enhanced regulation on secondary fattening practices may also help improve supply-demand relationships in the market [2][5].

Investment Rating - The investment rating for the agriculture, forestry, animal husbandry, and fishery industry is "Positive" (maintained) [1] Core Insights - Short-term consumption weakness has led to a slight decline in pig prices, but high prices for piglets and sows indicate optimistic expectations for the future [4][6] - The pig farming sector shows low valuation opportunities, while the pet sector continues to strengthen the logic of domestic brand rise [7][25] - The overall agricultural index underperformed the market by 0.93 percentage points during the week [29] Summary by Sections Weekly Observation - After the May Day holiday, consumer support was insufficient, leading to a slight decline in national pig prices. As of May 9, the average selling price of live pigs was 14.79 yuan/kg, down 0.02 yuan/kg week-on-week, a decrease of 0.14% [4][15] - The average daily slaughter volume of sample enterprises was 148,800 pigs, a decrease of 780 pigs from the previous week [4][15] Weekly Viewpoint - The pig sector shows low valuation opportunities, with the supply side not yet recovering to the levels of the same period in 2023. The demand side is supported by macro policies driving consumption recovery [25] - Recommended stocks include Muyuan Foods, Wens Foodstuff Group, Juxing Agriculture, Huadong Food, and Tiankang Biological [7][25] Market Performance (May 5-9) - The agricultural index rose by 0.99%, underperforming the market by 0.93 percentage points, with the fishery sector leading the gains [29][32] - Notable stock performances included *ST Jiawo (+13.47%), Guotou Zhonglu (+12.05%), and Xuelong Biological (+11.04%) [29][35] Price Tracking (May 5-9) - As of May 9, the national average price for live pigs was 14.82 yuan/kg, down 0.02 yuan/kg from the previous week. The average price for piglets was 36.87 yuan/kg, also down 0.01 yuan/kg [41] - The average profit for self-bred pigs was 84.33 yuan/head, a decrease of 0.72 yuan/head week-on-week [41] Key News (May 5-9) - Seven departments jointly issued an implementation opinion to enhance the overall effectiveness of the agricultural science and technology innovation system [36]

Core Viewpoint - The 2024 Annual General Meeting of He Feng Food Co., Ltd. will discuss various proposals, including the execution of related party transactions and the company's financial performance, highlighting a significant profit increase and strategic governance improvements [1][4][13]. Group 1: Company Performance - The company achieved a net profit of 342 million yuan in 2024, a year-on-year increase of 174.93%, marking a turnaround from a loss [4][13]. - The total revenue for 2024 was 32.55 billion yuan, a decrease of 9.52% compared to the previous year [13][14]. - The company's total assets at the end of the reporting period were 14.88 billion yuan, a slight decrease of 0.37% from the previous year [13][14]. Group 2: Governance and Management - The board of directors has been recognized for its effective governance, receiving an A-level rating for information disclosure for seven consecutive years [5]. - The company completed a board restructuring and appointed a new management team, enhancing governance and operational efficiency [5][9]. - The company executed two rounds of share repurchase plans, spending 287 million yuan to buy back 39.99 million shares, reflecting management's confidence in the company's value [5][9]. Group 3: Related Party Transactions - The company reported that its related party transactions in 2024 were necessary for normal operations, with pricing based on market rates, ensuring compliance with legal and regulatory standards [17][18]. - The total expected amount for related party transactions in 2025 is projected to be 159.4 million yuan, with various categories of transactions detailed [17][18]. Group 4: Future Outlook - The company aims to strengthen its feed business, enhance the meat poultry industry, and improve cash flow and risk management in the coming years [9][12].

Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Insights - The agriculture industry achieved a revenue of 11,498.20 billion yuan in 2024, a year-on-year decrease of 3.68%, while the net profit attributable to shareholders rose to 466.39 billion yuan, an increase of 806.55% [4][14] - In Q1 2025, the industry reported a revenue of 2,706.77 billion yuan, a year-on-year growth of 6.79%, and a net profit of 133.13 billion yuan, up 795.07% year-on-year [4][14] - The profitability indicators showed improvement, with the gross profit margin at 12.91% in Q1 2025, up 5.74 percentage points year-on-year, and the net profit margin at 5.16%, an increase of 6.18 percentage points year-on-year [4][18] Summary by Sections Weekly Observation - The livestock sector saw significant year-on-year profit growth, with poultry farming, livestock farming, feed, and pet food sectors showing net profit increases of 1,109.96%, 389.01%, 230.88%, and 75.67% respectively in 2024 [5][20] - In Q1 2025, the net profit growth rates for feed, poultry farming, livestock farming, aquaculture, animal health, and pet food sectors were 962.42%, 588.35%, 254.62%, 117.28%, and 21.27% respectively [5][20] Weekly Perspective - The swine sector shows low-positioning value, with the recovery of profitability and consumer demand boosting the sector. Recommended stocks include Muyuan Foods, Wens Foodstuff Group, and others [6][24] - The feed sector benefits from the post-cycle of poultry and livestock, with strong overseas demand supporting prices. Recommended stocks include Haida Group and New Hope Liuhe [6][24] - The pet sector is experiencing a rise in domestic brands due to consumption upgrades and tariff barriers, with recommended stocks including Guai Bao Pet, Zhong Chong Co., and Petty Co. [6][26] Market Performance - During the week of April 28 to May 2, the agriculture index underperformed the market by 0.08 percentage points, with the agriculture index down 0.56% [7][27] - The feed sector led the gains among sub-sectors, with individual stocks like Ruip Biotech, New Sai Co., and Daodaoquan leading the market [7][32] Price Tracking - As of May 2, the average price of live pigs was 14.84 yuan/kg, down 0.11 yuan/kg from the previous week, while the average price of white strip meat rose by 0.11 yuan/kg to 19.2 yuan/kg [8][37] - The average price of beef increased to 69.03 yuan/kg, reflecting a 0.74% rise [8][43] - The average price of bass rose to 35.30 yuan/kg, up 3.82% from the previous week [8][48]