HK Stock Market Move | Muyuan Foods Group (02714) rises over 3%; institutions say accelerated sow destocking reinforces expectations for mid-term improvement.

Muyuan Foods Group (02714) rallied during intraday trading, now up over 3%. As of press time, it is up 3.46% at HK$37.08, with a turnover of HK$31.2999 million. On the news front, according to Sublime China Information, in July-August, some large-scale farms began to accelerate production cuts due to policy restrictions, and the market entered a second wave of concentrated production cuts, with a cumulative decline of 2.50% over two consecutive months. Production cuts were still ongoing in September, and sow culling began to decrease in mid-to-late September. KAIYUAN SECURITIES believes that short-term supply and inventory pressures persist, and the acceleration of sow destocking reinforces expectations for mid-term improvement. Sinolink pointed out that in the medium to long term, the hog farming industry still has relatively excellent central profitability, and amid the rapid expansion of the industry after African swine fever, there are still a large number of enterprises expanding production capacity with low quality. The variance in industry costs remains huge, and leading enterprises have ample excess profit to release. It is recommended to select high-quality enterprises with low costs.