CITIC Securities: The current average market value per head of pig farming companies is at a relatively low level. We continue to recommend this sector.

CITIC Securities research report stated that the pig price in the 26th half of the year is fluctuating at a low level, with deep losses in the sector and significant cost differentiation among listed companies. The industry is currently experiencing continued losses, with significant cash flow pressure, continued policy constraints strengthening, and regulatory effects gradually taking effect, combined with the possible impact of extreme weather conditions. We estimate that capacity reduction in the second half of 26H2 is expected to continue, and the pig price is expected to be prosperous in 2027. The average market value of pig enterprises is currently at a relatively low level, and we continue to recommend the sector.