Changes in Hong Kong stocks | Makiyuan Co., Ltd. (02714) fell more than 3% in the afternoon, and the deep decline in pig prices dragged down the performance of the first half of the year. The market is concerned about the effects of sow removal

The Zhitong Finance App learned that Makiyuan Shares (02714) fell more than 3% in the afternoon. As of press release, it decreased by 3.33% to HK$37.12, with a turnover of HK$774.48,800.

According to the news, data from the National Bureau of Statistics shows that by the end of the second quarter of 2026, there were 37.8 million breeding sows nationwide, down 3.2% month-on-month and 6.5% year-on-year. The decline was significantly larger than in the first quarter. The stocks were eliminated month-on-month for many months, and the pace of capacity reduction accelerated. However, according to the breeding and growth cycle of pigs of about 10 months, the effects of sow removal from the end of 2025 to the beginning of 2026 will gradually spread to commercial pigs after September 2026. Currently, the number of pigs released is still relatively high.

Huatai Securities pointed out that the pressure on Muyuan Co., Ltd.'s performance in the first half of the year was mainly due to the accelerated decline in pig prices since March and the average loss in the industry exceeded the end of 23. Although the company maintained its industry-leading cost advantage, it was still difficult to withstand the deep downward impact of pig prices. We believe that the company's cost-leading strategy is stable. With pig prices recovering in 27 years, the profit advantage is expected to be realized with strong performance flexibility and maintain a “buy” rating.