Guolian Livelihood Securities: Seize the structural opportunities in optimizing pork production capacity and under new consumption trends.

Guolian Minsheng Securities released a research report saying that it is expected that the output of live pigs will continue to grow at least until September 2025. The overall pig price in 2025 is expected to be under pressure, and the profitability of the pig farming industry may decrease. The trend of capacity elimination of sows is expected to strengthen in the future. It is recommended to focus on excellent breeding enterprises with obvious cost advantages and high cash-out rates. The number of live pigs and aquaculture specimens is expected to increase, and the recovery of demand is expected to drive the expansion of the pig feed and aquafeed markets. In addition, there are broad opportunities in the overseas feed market, and domestic feed enterprises are actively looking for additional sources to expand. The future development is promising. The domestic pet industry may still be in a stage of vigorous growth momentum, with domestic products gradually replacing imports and continuously upgrading. It is worth paying attention to domestic pet food and health companies with great development potential.