According to Shanxi Securities, after experiencing four consecutive 'loss bottoms' and continuous consumption of assets, the hog farming industry's asset-liability ratio has gradually reached a historical high. The industry's overall financing capacity and financing space have significantly declined, and it will take a long time to repair the balance sheet and reduce the high debt ratio. In contrast to 2021 and 2022, when the pig price rebounded rather than reversed, since early 2024, there are significant differences in the characteristics of sows being replenished, which have already appeared in the end of the bottom of the cycle. Influenced by its own financial conditions, financing constraints, and four years of repeated pig price grinding at the bottom, the industry's ability and willingness to replenish sows may have greatly weakened in 2024, and 'cost reduction and efficiency increase' has instead become a more frequent term in the industry in the past half year, and the cycle of grinding at the bottom is expected to come to an end. The hog farming cycle has already reached the end of the bottom and the dawn is just ahead. We are bullish on investment opportunities in hog farming stocks.