The agriculture, livestock, and fishery sector bucked the market trend today (December 10), with the sole Agriculture, Livestock & Fishery ETF (159275) in the market quickly turning positive after opening. Intraday gains peaked at 0.51%, and as of writing, it was up 0.31%.
Among constituent stocks, seed producers, aquaculture, and fishery-related companies led the gains. As of writing, Luoniushan hit the daily limit up, Shennong Seed surged over 10%, Hainan Rubber rose more than 3%, while Sunong Development and Tianma Tech both followed with gains exceeding 2%.
Analysts note that current market caution may present a favorable entry window. Secondary market expectations had previously projected a 16-month profitability cycle for the industry, so the recent steep decline in hog prices has not triggered rapid capacity reduction. Given persistent cost disparities, capacity adjustments will likely be gradual, with high-cost players exiting first. During this downturn, production costs and cash flow have become key competitive factors. This cycle may optimize industry competition, favoring firms with cost and financial advantages for extended profitability.
Valuation-wise, the sector remains at relatively low levels, suggesting a timely entry point. Data shows that as of yesterday’s close (December 9), the CSI All Share Agriculture, Livestock & Fishery Index—tracked by the ETF (159275)—had a price-to-book ratio of 2.48x, near a 10-year low at the 21.48th percentile, highlighting its medium-to-long-term value.
Looking ahead, Huaxi Securities anticipates proactive capacity cuts in hog farming amid sustained losses. Recent anti-overcapacity measures could lift domestic hog price trends long-term, with industry focus shifting to efficiency gains. Outdated capacity may phase out, boosting market share for low-cost, financially robust players.
Pacific Securities highlights policy signals since June urging capacity reduction, noting triple pressures from falling prices, rising disease risks, and regulatory guidance that may accelerate adjustments. Most listed hog farming firms’ per-head valuations (based on 2025 projected output) remain near historic lows, offering significant upside potential.
For exposure to the hog cycle rebound, the Agriculture, Livestock & Fishery ETF (159275) is key. It tracks the CSI All Share Agriculture, Livestock & Fishery Index, featuring leaders like Muyuan Foods and Wens Group alongside feed, crop, and animal health segments. Off-exchange investors can access the sector via its feeder funds (Class A 013471/Class C 013472).
Data source: Wind, as of October 2025 (Shenwan tier-3 industry classification). Risk disclosure: The ETF passively tracks its underlying index (base date: December 31, 2004; launch date: December 12, 2016). Index composition changes per rules; past performance doesn’t indicate future results. Constituent mentions are illustrative, not recommendations. Investors should assess fund documents and risk profiles independently. The fund carries an R3-medium risk rating, suitable for balanced (C3) or higher risk tolerance investors per distributor assessments. Regulatory approval doesn’t guarantee returns.
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