Shares of Muyuan Foods Group Co.,Ltd. (02714) have risen by more than 8% in Hong Kong trading.
As of the latest update, the stock is up 8.13%, trading at HK$31.4 with a turnover of HK$152 million.
The catalyst for the move is a return of live hog prices to a significant level.
Data from a monitoring network shows that on July 1st, the price for live hogs reached 10.14 yuan per kilogram.
This marks the first time the price has re-entered the "10-yuan era" since April 26th.
Concurrently, policy measures aimed at controlling hog production capacity are accelerating at a notable pace.
Since June, relevant ministries have consecutively convened meetings on capacity regulation.
For the first time, these meetings imposed specific, mandatory "four leadership" requirements on large-scale breeding enterprises.
They also set a firm deadline for the end of September to complete capacity reduction and the culling of low-efficiency sows.
In a research note, Galaxy Securities highlighted the ongoing focus on the trajectory of the hog cycle.
The firm's analysis suggests that hog prices are expected to decline year-on-year in 2026, based on considerations for the breeding sow population and farming efficiency, though intermittent rebounds may occur.
Taking into account the policy-driven capacity reduction and the accelerated destocking likely spurred by deepening industry losses, the firm advises investors to pay close attention to high-quality pig farming companies with significantly improving cost structures and robust financial positions.
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