On June 6, Gelonghui | HTSC's research report pointed out that in May, as pig prices rose rapidly and Muyuan Foods (002714.SZ) accelerated its cost reduction, the company's sow inventory continued to increase, and there is still potential for cost reduction in the future. Considering the company's leading advantage, continuous cost reduction and efficiency improvement, and stable increase in sow inventory, a target price of 67.01 yuan and a buy rating are given to the company with 24-year 4.54x PB. Although the recent rapid increase in pig prices has been driven by certain emotional factors such as crowding and second-seed breeding, the actual entry ratio is not large, and more comes from the accelerated digestion of 23H2 sow production capacity. Considering that the cumulative digestion of sow inventory from January 2023 to April 2024 is 11.5% and showing an accelerating trend of digestion, and this year's crowding and second-seed breeding are more rational, it is believed that this round of pig price increase and sustainability is worth looking forward to.