The Zhitong Finance App learned that Dekang Agriculture and Animal Husbandry (02419) rose more than 6% in the afternoon. As of press release, it had risen 6.12% to HK$57.2, with a turnover of HK$446.809 million.

According to the news, data from the Ministry of Agriculture and Rural Affairs shows that by the end of the second quarter of this year, the number of breeding sows nationwide had dropped to 37.8 million, 2.63 million fewer than the same period last year, and 1.81 million fewer than at the end of 2025. This is only 300,000 heads short of the normal ownership target set at 37.5 million heads. According to SDIC Securities, the pig breeding industry may gradually enter the sow super hunt stage in the third quarter of 2026, which will accordingly drive a reversal of the 2027 pig cycle.

It is worth noting that Dekang Agriculture and Animal Husbandry maintains industry leadership in total cost and profit efficiency. Single loss is superior to peers, and its resilience to cycles is outstanding. Huatai Securities believes that the trend of accelerated production capacity removal and medium- to long-term pig prices bottoming out is quite clear. The pig breeding sector may face the time of allocation, and the company's breeding costs maintain a comparative advantage and there is still room for optimization, so long-term growth is worth looking forward to.

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