Changes in Hong Kong stocks | Pork concept stocks rose again, pig prices rose for two weeks in a row in July, and industry production capacity is expected to usher in a period of accelerated deceleration

The Zhitong Finance App learned that pork concept stocks rose again. As of press release, Dekang Agriculture and Animal Husbandry (02419) rose 5.68% to HK$53.95; COFCO Jiajiakang (01610) rose 4.55% to HK$1.15; and Muyuan shares (02714) rose 4.43% to HK$34.4.

According to the news, according to monitoring by the Ministry of Agriculture and Rural Affairs, pig and pork prices across the country have been rising for two consecutive weeks since July, with a marked increase. On July 12, the wholesale price of white striped pork in the Beijing Xinfadi Market was 14.4 yuan per kilogram, up 15% from July 1. Liu Tong, a market analyst at Xinfadi, said, “The highest price in early July was on July 8. The average price was 14.55 yuan per kilogram, the highest price since the Spring Festival this year.”

Jianghai Securities believes that under the dual drive of “anti-domestic volume” policy regulation and loss and production reduction, the industry's production capacity is expected to usher in a period of accelerated decline, but the pig breeding sector can be laid out on the left. Looking at the medium to long term, in the context of high-quality development of the industry, the costs of leading farming enterprises continue to decline, and the profit center may increase at the beginning of the cycle. Combined policies control capital expenditure reduction, and enterprises continue to stabilize cash flow and increase dividend expectations. It is recommended to lay out pig breeding enterprises on the left.