Hong Kong Stock Concept Tracking | Live Pig Prices Have Increased by Over 7.5% Since August, Institutions Focus on the Valuation Repair of Breeding Enterprises (Including Related Stocks)

Since August, the price of live pigs has continued to warm up, remaining above 11 yuan per kilogram for several consecutive days. According to data from China Pig Industry Network, on August 25, the price of live pigs was reported at 11.13 yuan per kilogram, which is an increase of over 7.54% compared to the beginning of the month. "The relatively warming downstream demand has driven the increase in pork prices to some extent." Yan Facheng, a market analyst at Sublime China Information, stated that compared to July, the high temperature weather in August has eased, and home consumption of fresh meat has seen a noticeable rebound, with significant improvements in the turnover of whole pigs. At the same time, the increase in collective events such as school enrollment banquets, inaugural banquets, and wedding banquets has driven up the demand for pigs in group dining channels. Data from Sublime China Information shows that as of August 17, the national daily slaughter volume of live pigs was 173,196 heads, an increase of 8.27% compared to last month's 159,967 heads. Recently, CICC released a research report stating that pig prices in August may weaken further, leading to expanded industry losses, and capacity reduction may accelerate compared to July. With the capacity reduction in the first half of the year and a seasonal rebound in demand in the second half, the bank expects the average price of live pigs in the second half of 2026 and the first quarter of 2027 to be 11 and 11.5-12.5 yuan/kg, respectively. Guotou Securities' research report pointed out that the low-price areas of Sichuan and Chongqing are leading the market. Recently, pig prices have bounced back, and the prices in Sichuan and Chongqing have stabilized and increased, which may indirectly reflect that the supply pressure of live pigs in these areas has significantly eased. China Great Wall noted that the current rebound in pig prices is mainly due to the repair of the bottom level, with the average weight of market-ready pigs still high and frozen inventory remaining high year-on-year. The demand side has not substantially warmed up, and the signals for a fundamental reversal are not yet sufficient; however, losses have narrowed on a month-on-month basis, and the sector's valuation is at a bottom area. It is recommended to pay attention to leading pig enterprises with cost advantages and stable cash flow, as well as the layout opportunities with deepening capacity reduction and cyclical reversal. Listed pig farming companies in the Hong Kong stock market: DEKON AGR(02419), COFCO JOYCOME(01610), Muyuan Foods Group(02714), WH GROUP (00288)