Guosheng: The trend of pig market consolidation remains unchanged, choose the right time to invest in sector allocation.

Guosheng released a research report stating that this month, the price of live pigs continued to operate at a low level, with no obvious rebound before the Winter Solstice holiday, but a surprisingly sharp increase after the holiday. Market sentiment is gradually warming up in the peak season, and the bank expects the rebound in spot prices to be sustained until the Spring Festival stocking. Stock market participation is still relatively low, and participants with high costs are expected to face pressure to reduce their holdings for a longer period in the future. Changes in sow production capacity will continue to catalyze, and the bank recommends investors to focus on opportunities to allocate losses. Current valuations are still relatively low, and focus on opportunities to allocate low-cost pig enterprises. Guosheng's main points are as follows: Mushrooms: This month, the price of needle mushrooms remains prosperous, confirming the continued rebound in prices. As the peak period for Cordyceps sinensis as a key new product approaches, the performance is strong, and it is recommended to focus on key targets in the sector such as Tianshui Zhongxing Bio-technology, Shanghai Xuerong Bio-Technology, Jiangsu Chinagreen Biological Technology Group, etc. Livestock feed: The price fluctuations in the upstream and downstream of Shenzhen Agricultural Power Group have intensified, and the prices of livestock and poultry have not yet entered a stable prosperous cycle. Leading feed enterprises relying on procurement, scale, capital, and industry chain advantages are expected to replace medium and small feed enterprises, and their overseas strategies are also worth looking forward to. Pay attention to companies like Guangdong Haid Group. Vaccines should also be focused on for a rebound in the coming quarters. Poultry farming: Regarding yellow-feathered broilers, it is recommended to focus on seasonal price elasticity opportunities and companies like Jiangsu Lihua Foods Group. For white-feathered chickens, on December 26, 2025, the price of live chickens was 7.82 yuan/kg, an 8.8% increase from the previous month; the average price of chicken products was 9.3 yuan/kg, a 3.9% increase from the previous month; and the price of broiler chicks was 3.59 yuan each, a 3.5% increase from the previous month. Pay attention to the situation of avian flu in Europe, and companies like Fujian Sunner Development, Shandong Yisheng Livestock & Poultry Breeding, Wellhope Foods, etc. Planting and Shenzhen Agricultural Power Group: From the industrial perspective, the trend of variety replacement within the sector is clear, with breakthroughs in mid-spike dense planting and related targets worth paying attention to. In addition, genetically modified varieties have officially entered commercial sales, and the confirmation of industry company growth and realization time will gradually follow, including actual transaction prices, profit distribution, and new season seed breeding. The sector's investment potential is worth looking forward to. Focus on companies like KANGNONG SEED, Gansu Dunhuang Seed Group, Yuan Longping High-Tech Agriculture, etc. Pets: The China Pet Industry Retail Conference was held this month, announcing that the total pet consumption scale across all channels in the first three quarters of 2025 was 108.84 billion yuan, a year-on-year increase of 4.5%. It is estimated that the total annual retail sales of pets in 2025 will be 154.5-160 billion yuan, and the industry's growth trend remains unchanged. The industry's substitution and high-end trend are constantly favored, focusing on companies like Gambol Pet Group, Yantai China Pet Foods, etc. Risk Warning: Risks such as price fluctuations in Shenzhen Agricultural Power Group, disease risks, policy risks, industry competition, and product risks.