HK Stock Market Move | Pork concept fell the most, Muyuan's April pork price fell below cost line, institutions pointed out that the expectation of capacity digestion has strengthened.

Pork concept fell sharply, as of press time, Muyuan Foods (02714) fell by 3.15% to 40 Hong Kong dollars; COFCO JOYCOME (01610) fell by 2.16% to 1.36 Hong Kong dollars, and WH GROUP (00288) fell by 0.61% to 9.77 Hong Kong dollars. On the news front, Muyuan Foods released operating data showing that the average selling price of commodity pigs in April was 9.45 yuan/kg, a sharp year-on-year decrease of 35.54%, and has been declining for three consecutive months. Sales revenue was 8.503 billion yuan, a year-on-year decrease of 32.49%. Muyuan Foods' net profit attributable to shareholders in the first quarter of 2026 was a loss of 1.215 billion yuan, a year-on-year turnaround to a loss. The main reason for the loss in performance was the sharp decline in pig prices. It is worth noting that Muyuan's complete breeding cost in March has dropped to 11.6 yuan/kg. Huafu Securities pointed out that on April 30, four departments supported localities to carry out commercial storage of frozen pork, and they are paying attention to the follow-up industry storage scale and intensity, as well as the trends of the secondary fattening population. The industry's losses continue to accumulate, and the expectation of capacity elimination is strengthening as capacity regulation policies are being implemented. In the first quarter of 2026, the national inventory of sows was 39.04 million head, a quarter-on-quarter decrease of -1.44% and a year-on-year decrease of -3.3%, with the gradual manifestation of capacity reduction effects.