The current rise in pork prices is not yet over, and the highly prosperous cycle is likely to exceed expectations in terms of continuity.
Domestic pig prices continued to rise this week, with a weekly average increase.
According to data from China Pig Network, on June 14th, the price of live pigs was 18.77 yuan/kg, an increase of 1.6% compared to last Friday's 18.48 yuan/kg.
Looking at the weekly average, the average price of live pigs this week is 18.9 yuan/kg, up 2.7% from last week's average price of 18.4 yuan/kg, and up 23.5% compared to the average price of 15.3 yuan/kg from two months ago, April 8th to 12th.
Zhongchuang.com learned on June 14th that Huachu.com issued a notice regarding the bidding transaction of the central reserve frozen pork rotation storage on June 16, 2024. The total storage auction transaction volume is 30,000 tons.
Tianfeng Securities stated in their research report that they predict the supply gap in this cycle will accelerate in the near future, and the current pork price rise is not over yet. The highly prosperous cycle is likely to exceed expectations in terms of continuity. Pay attention to the expectation gap and value the space. In terms of stock selection, it is currently recommended to use capital as the king, to lead in cost, to achieve high-output sales, and to focus on core assets in sector beta allocation.
Hog farming-related companies:
Cofco Joycome (01610): In May 2024, the output of live pigs was 265,000, an increase of 8.61% quarter-on-quarter. The average selling price of big commodity pigs increased by 4.85% to 16 yuan/kg. The sales volume of fresh pork was 20,900 tons, an increase of 3.98% quarter-on-quarter, and the proportion of brand income in fresh pork business was 26.43%.