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 investment rating of "Buy-A" for Haida Group, "Buy-B" for Shennong Development and Wens Foodstuffs, and "Hold-A" for Guai Bao Pet and Zhongchong Shares [8]. Core Insights - The report highlights the return of capacity reduction logic in the breeding sector, suggesting that the pig farming 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][4]. - The report indicates that the overall pig price has decreased, leading to an expansion of losses in pig farming profits. As of March 13, the average price of external three yuan pigs in Sichuan, Guangdong, and Henan was 10.25, 10.96, and 10.13 yuan/kg, respectively, with an average pork price of 16.17 yuan/kg, down 4.99% from the previous week [3][24]. - The feed industry is experiencing a shift from product competition to value chain competition, with market share concentrating among leading companies with advantages in research and development, scale, and service [3]. Summary by Sections 1. Market Performance - During the week of March 9 to March 15, the Shanghai and Shenzhen 300 Index rose by 0.19%, while the agriculture sector increased by 1.01%, ranking sixth among sectors. The top-performing sub-industries included grain and oil processing, food and feed additives, and pig farming [2][15]. 2. Pig Farming - The report notes a significant decline in pig farming profits, with self-breeding losses reaching -283.15 yuan per head, a decrease of approximately 45.17 yuan from the previous week. The profit from purchasing piglets was -118.18 yuan per head, down about 59.29 yuan [3][24]. 3. Poultry Farming - The price of white feather chickens has slightly rebounded, with a weekly price of 7.21 yuan/kg, while the profit from raising meat chickens has decreased to 0.11 yuan per chicken, down 38.89% from the previous week [44]. 4. Feed Processing - The average price of feed for fattening pigs has increased to 3.38 yuan/kg, while the average price for chicken feed is 3.55 yuan/kg, both showing a week-on-week increase [49]. 5. Aquaculture - The report states that the price of sea cucumbers remains stable at 110 yuan/kg, while the price of shrimp is 280 yuan/kg. Freshwater fish prices, such as grass carp and crucian carp, have seen slight declines [56]. 6. Planting and Grain Processing - The report indicates a notable increase in grain prices, with corn at 2446.86 yuan/ton (+1.20%), soybeans at 4277.37 yuan/ton (+5.04%), and wheat at 2577.61 yuan/ton (+1.40%) [65].

Investment Ratings - The report maintains an investment rating of "Buy-A" for Haida Group (002311.SZ) and "Buy-B" for Shengnong Development (002299.SZ) and Wen's Shares (300498.SZ) [2] Core Insights - The pig prices are expected to face downward pressure after the peak season, with self-breeding pig farming profits currently in the negative [4] - The feed industry is undergoing accelerated consolidation, with market share shifting towards leading companies with R&D advantages and scale [4] - The report highlights opportunities for Haida Group due to its efficient internal management and strong service advantages in the industry chain [4] - The report suggests that the pig farming industry may experience a significant capacity reduction in 2026, which could improve the fundamentals and valuations of the sector [5] - The pet food sector is expected to continue growing, with a shift in competition from marketing to R&D and supply chain management [6] Summary by Sections 1. Industry Performance - The agricultural sector saw a decline of 1.92% in the week of February 2-8, 2026, with the food and feed additives, meat chicken farming, and pig farming sectors performing relatively well [3][13] 2. Pig Farming - As of February 6, 2026, the average prices for external three-way cross pigs in Sichuan, Guangdong, and Henan were 11.65, 11.96, and 12.38 CNY/kg, respectively, showing a week-on-week decline of 4.12%, 1.64%, and 1.98% [4][22] - The average pork price was 18.34 CNY/kg, down 1.45% from the previous week [4][22] - Self-breeding pig farming profits were reported at -38.09 CNY/head, a decrease of 63.19 CNY/head from the previous week [4][22] 3. Poultry Farming - The price of white feather chickens was reported at 7.53 CNY/kg, down 2.71% week-on-week, with a loss of 0.26 CNY per chicken [37] 4. Feed Processing - The average price of feed for fattening pigs remained stable at 3.37 CNY/kg as of January 29, 2026 [41] 5. Aquaculture - As of February 6, 2026, the price of sea cucumbers was 120 CNY/kg, and the price of shrimp was 320 CNY/kg, both remaining stable [47] 6. Crop and Oilseed Processing - As of February 6, 2026, corn was priced at 2368.43 CNY/ton, with a slight decrease of 0.33% week-on-week, while soybean prices remained stable at 4072.11 CNY/ton [56][57]