① The National Bureau of Statistics released data on May 14. The current price of pigs (plus three yuan) was 15.0 yuan/kg, up 0.7% from the previous month. ② The CICC research report points out that expectations for a reversal of the pig cycle have strengthened, the sector has entered a layout period, and low-cost, highly flexible pig companies will benefit first.
The National Bureau of Statistics released data on May 14. According to monitoring the market prices of 50 important means of production in 9 categories in the national distribution sector, compared with the end of April in early May 2024, the prices of 29 products rose, 20 fell, and 1 remained flat. Among them, the current price of pigs (three yuan more) was 15.0 yuan/kg, up 0.7% from the previous month.
As of May 10, a number of A-share listed companies have publicly stated that since this year, the company's pig breeding business has significantly reduced losses and has achieved profits within a period of time. The CICC research report points out that expectations for a reversal of the pig cycle have strengthened, the sector has entered a layout period, and low-cost, highly flexible pig companies have priority benefits. From a cyclical perspective, judging that pig prices from 2Q24 to the end of the year have a quarterly upward basis. From an enterprise perspective, it is judged that the current financial pressure on pig companies has reached an extreme historical value. The period of increase in pig prices is a critical window for balance sheet repair. From an investment perspective, the current round of the market did not beat pig prices; the inflection point on the right side of pig prices is a key catalyst.
According to the Finance Federation's theme library, among the relevant listed companies:
Tang Renshen was one of the first leading agricultural industrialization enterprises in China to focus on the operation of the entire pig industry chain. It specializes in the three major industries of biological feed, healthy breeding, and branded meat, forming a competitive advantage in the entire pig industry chain.
Huatong Co., Ltd. focuses on livestock and poultry farming and slaughter business, making every effort to build an integrated business model in the industrial chain. Its main business covers livestock and poultry breeding, livestock and poultry slaughter, deep processing of meat products, feed processing, etc. The products sold abroad mainly include fresh pork, fresh poultry, and Jinhua ham.