According to a research report from GF Sec, Wens Foodstuff Group (300498.SZ) achieved a turnaround in the first half of 2024, with its performance exceeding market expectations. The main reason for the turnaround in the first half of the year was the significant rebound in the price of livestock and poultry in the second quarter, as well as a more-than-expected decrease in breeding costs. According to the record of investor relations activities, the cost of piglet breeding in May dropped to 330 yuan/head, and the comprehensive breeding cost dropped to 14.2 yuan/kg. In terms of production capacity, as of the end of April 2024, the company had a maternal sow inventory of 1.57 million heads, and the production capacity of sows continued to increase. In addition, the company's meat and poultry business remained stable, and its breeding costs continued to lead. Considering the comparable company valuation and the company's performance recovery, the judgment of maintaining a reasonable value of 26.73 yuan/share remains unchanged, corresponding to a PE valuation of 17 times in 2024, and maintaining a "buy" rating.