Changjiang Securities released a research report stating that in the first quarter of 2024, when pig prices are still relatively low, it is expected that sector performance will continue to be under pressure, and the industry may begin to remove production capacity nonlinearly. Looking at the later stages, against the backdrop of continued deep losses in the pig breeding industry, production capacity of some high-cost and high-leverage enterprises may continue to clear, thereby further expanding the cumulative reduction in production capacity, and the inflection point of the pig cycle will also become more and more clear. Currently, the average market value of pig breeding companies is still at the bottom, and we are optimistic about investment opportunities in the sector. We mainly recommend Muyuan Co., Ltd. (002714.SZ), Wenshi Shares (300498.SZ), Superstar Agriculture and Animal Husbandry (603477.SH), and Shennong Group (605296.SH).