HK Stock Market Move | Pork concept stocks are leading in gains as recent pork prices have risen. Institutions indicate that the sector's valuation is at a bottom level.

Pork concept stocks are leading in gains. As of the time of publishing, DEKON AGR (02419) is up 5.87%, trading at HKD 54.1; COFCO JOYCOME (01610) is up 5%, trading at HKD 1.155; Muyuan Foods Group (02714) is up 4.08%, trading at HKD 34.68. In market news, the domestic live pig market continues to rise strongly, with the latest average price reaching RMB 10.86 per kilogram, up 4.22% week-on-week. In several regions such as Hubei, Jiangxi, and Beijing, pig prices have exceeded RMB 11 per kilogram. A research report from Guotou Securities points out that low-price regions of Sichuan and Chongqing are leading the uptrend, as recent pig prices have started to rise, indicating that the supply pressure for live pigs in these areas may have significantly eased. China Great Wall notes that the current rebound in pig prices is mainly due to bottom recovery, with the average weight of pigs being sold still high and frozen product inventories remaining elevated year-on-year. The demand side has not seen substantial recovery, and the signals for a reversal in fundamentals are still inadequate; however, losses have narrowed on a month-to-month basis, and sector valuations are at the bottom range. It is recommended to focus on leading pig enterprises with cost advantages and robust cash flow, as well as opportunities for positioning during the cyclic reversal following deep capacity reduction.