China Merchants Securities released a research report saying that looking ahead to 2026, investment opportunities in the agriculture, forestry, animal husbandry and fishing sector may focus mainly on the two dimensions of cycle and growth: 1) cycle. Due to a combination of anti-domestic pig sales and industry losses, sow production capacity has been restarted. It is expected that 26H2 pig prices may gradually pick up. The introduction of chicken from the ancestral generation declined year on year, and I am optimistic about the poultry breeding market. 2) Growth. Hengqiang, a leading domestic breeding company, is expected to replicate the mature domestic competition paradigm to overseas markets and open up room for growth. The industrialization of biological breeding is being actively promoted, and the market share of leading breeding companies with core breed advantages is expected to increase at an accelerated pace.

China Merchants Securities released a research report saying that looking ahead to 2026, investment opportunities in the agriculture, forestry, animal husbandry and fishing sector may focus mainly on the two dimensions of cycle and growth: 1) cycle. Due to a combination of anti-domestic pig sales and industry losses, sow production capacity has been restarted. It is expected that 26H2 pig prices may gradually pick up. The introduction of chicken from the ancestral generation declined year on year, and I am optimistic about the poultry breeding market. 2) Growth. Hengqiang, a leading domestic breeding company, is expected to replicate the mature domestic competition paradigm to overseas markets and open up room for growth. The industrialization of biological breeding is being actively promoted, and the market share of leading breeding companies with core breed advantages is expected to increase at an accelerated pace.