HK Stock Market Move | Pork concept stocks rise again, pork prices have risen for two weeks in July, and industry capacity is expected to enter a period of accelerated digestion.

Pork concept stocks rise again, as of the time of writing, DEKON AGR (02419) rose by 5.68% to HK$53.95; COFCO JOYCOME (01610) rose by 4.55% to HK$1.15; Muyuan Foods Group (02714) rose by 4.43% to HK$34.4. On the news front, according to monitoring by the Ministry of Agriculture and Rural Affairs, national pig and pork prices have been rising for two consecutive weeks since July, with a significant increase. On July 12, the wholesale price of white strip pigs at Beijing Xinfadi Market was 14.4 yuan per kilogram, up 15% from July 1. Xinfadi market analyst Liu Tong said, "The highest price in early July appeared on July 8, with an average price of 14.55 yuan per kilogram, the highest price since the Spring Festival this year." Jianghai Securities believes that under the dual drive of policy regulation to "combat internal competition" and reducing losses and production, the industry's production capacity is expected to enter a period of accelerated digestion, and it is advisable to position oneself in the pig breeding sector on the left side. In the medium to long term, under the background of the industry's high-quality development, the cost of leading breeding enterprises continues to decline, and the average profit center of the cycle may increase, coupled with policies to control capital expenditure reductions, the expectation of continuous stable cash flow increase and dividend distribution. It is recommended to position oneself on the left in pig breeding enterprises.