Gelonghui, May 17 | CICC's research report indicates that the production efficiency of Wenshi Co., Ltd. (300498.SZ) is rapidly improving, compounding the decline in feed raw material costs in the superposition industry, and the cost improvement is significant. Overall, the company's comprehensive cost of breeding pork pigs in April was reduced to 14.4/12.2 yuan/kg, -0.4/-0.4 yuan/kg month-on-month, and -2.4/-1.8 yuan/kg year-on-year; at the same time, out of 16 provincial regional pork pig breeding units, the comprehensive cost was already below 14 yuan/kg. The recent rise in pig prices indicates that the company has initially achieved profit. According to Yongyi Consulting, the pig price was 15.37 yuan/kg on May 15, which is already higher than the company's full cost. Furthermore, we judge that 2Q24 pig prices will rise quarterly, and the company's profit flexibility is expected to be released quarterly. Maintain the “outperform the industry” rating and target price of 25 yuan.