HK Stock Market Move | Pork concept stocks continue to rise; breeding sow inventory falls below normal retention levels; capacity reduction marginally accelerates in October.

Pork concept stocks continue to rise. As of press time, DEKON AGR (02419) is up 4.53% at HK$59.95; COFCO JOYCOME (01610) is up 3.06% at HK$1.18; Muyuan Foods Group (02714) is up 0.62% at HK$39.02. On the news front, data from the National Bureau of Statistics shows that at the end of the third quarter, the national breeding sow inventory stood at 36.02 million head, falling below the normal retention level of 37.5 million head for the first time, down 4.33 million head year-on-year, a decrease of 10.7%, marking substantive progress in capacity reduction. Mysteel sample data shows that in October 2026, breeding sow inventory fell 1.57% month-on-month, with the decline widening by 0.71 percentage points from September, marking nine consecutive months of month-on-month declines. It is worth noting that, according to statistics, the combined net profit attributable to shareholders of 13 listed pig companies in the third quarter was -RMB6.947 billion, turning to a loss year-on-year, while the industry's average debt-to-asset ratio rose to 62.98%. Kailuan Securities pointed out that whether profits during the peak piglet season in the first half of 2027 can repair cash flow is an important point to watch; if profitability only recovers to near break-even, production cuts may continue; if losses persist, proactive capacity reduction may further accelerate.