CMB Securities: Restarting production capacity and destocking, pig prices may gradually rebound in the second half of the year.

CITIC Securities' research report indicates that affected by the slight recovery of sow capacity in 2024, overall pig prices in 2025 will continue to trend downward, but the industry may still see slight profits for the whole year. The "anti internal competition" trend will force the industry to passively reduce production capacity and drive the industry to actively reduce production capacity by dropping pig prices below cash costs. The sow capacity is expected to restart in July and enter an accelerated clearance channel from October, with pig prices expected to gradually rebound in the second half of 2026. The variance in industry breeding costs remains large, with the cost advantage of high-quality pig companies continuing to expand, cash flow expected to continue to improve, and the balance sheet to be continuously repaired, enhancing intrinsic value.