The A-shares opened lower and declined, with the Shanghai Composite Index falling 0.53% at midday.

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Everyday Reporter | Liu Mingtao Everyday Editor | Ye Feng

On April 2nd, the A-shares opened lower and declined throughout the day. By the close in the morning, the Shanghai Composite Index fell 0.53% to 3,927.6 points, the Shenzhen Component Index dropped 1.15%, the ChiNext Index declined 1.78%, the CSI 50 rose 1.3%, the STAR 50 fell 2.26%, the Wind All A Index decreased 1.06%, the CSI A500 dropped 0.98%, and the half-day trading volume of A-shares was 1.2 trillion yuan.

In terms of liquidity, the People’s Bank of China announced that on April 2nd, it conducted 500 million yuan of 7-day reverse repurchase operations at a fixed rate and quantity auction, fully meeting the needs of primary dealers. The operation rate was 1.40%, with a bid amount of 500 million yuan and an amount won of 500 million yuan.

On the news front, recently the Ministry of Commerce, the National Development and Reform Commission, and the Ministry of Finance are conducting central reserve frozen pork stockpiling. Next, the Ministry of Commerce will continue to closely monitor pork market trends, strengthen trend analysis, coordinate with relevant departments to manage reserves, and ensure market stability.

Su Bo, Deputy Director of the National Manufacturing Power Construction Strategic Advisory Committee and Director of the National Intelligent Manufacturing Expert Committee, stated that over the next 10 years, China must坚持 the main focus on intelligent manufacturing without wavering, fully develop a new “upgraded version” of intelligent manufacturing that combines virtual and real elements, is autonomous, evolving, safe, and efficient. By 2030, the goal is for most manufacturing enterprises above designated size to be digitalized and networked, with phased progress in innovative breakthroughs in next-generation intelligent manufacturing; by 2035, most manufacturing enterprises above designated size will be digitalized, networked, and intelligent, with next-generation intelligent manufacturing applications leading the world.

In terms of sectors, oil and gas stocks opened high and continued to rise, pork stocks experienced gains, and optical fiber concept stocks repeatedly strengthened.

Under the guidance of policies to “counter internal competition” in the pig industry, capacity reduction is progressing simultaneously. Additionally, represented by PSY, the slope of the sow productivity curve may slow down phase-wise. This year could see the third significant capacity reduction since 2021, and the fundamentals and valuations of the pig farming industry are expected to recover.

Here, by integrating the latest research reports from multiple brokerages, four companies are introduced for reference.

1. Juxing Agriculture and Animal Husbandry

The company is committed to organizing production technicians to study various aspects of the breeding process, scientifically planning animal husbandry strategies, adopting multiple cost-reduction and efficiency-increasing measures, and continuously controlling breeding costs.

2. Shennong Group

The company has cost leadership and rapid slaughtering growth, making it a scarce target with both growth potential and financial stability within the current pig cycle.

3. Haida Group

The company’s overseas sales target of 7.2 million tons by 2030 is expected to be exceeded, with high overseas profitability and growth potential, further smoothing the domestic breeding and feed cycle.

4. Tiankang Biological

The company implements an integrated full-industry chain operation model combining breeding and other businesses. Compared to companies that operate with a single business model, it has stronger operational resilience and more stable performance.