As per Huatai Securities' analysis, the hog industry's capacity reduction measures have begun to bear fruit, with pig prices anticipated to stabilize, promising optimistic profit margins for low-cost farming enterprises. Furthermore, white feather chicken prices have recently rebounded, and the industry's prolonged losses could drive capacity optimization efforts. Despite year-over-year price declines for both hogs and white feather chickens, industry leaders have still managed to achieve performance growth, thanks to their superior cost control and channel advantages. Several leading enterprises within the agricultural and animal husbandry sector have transitioned into a phase of high-quality development, exhibiting robust cyclical resilience, and the value of dividends is steadily coming to the fore. Consequently, it is advisable to focus on high-quality potential leaders in the agricultural and animal husbandry space.
