Some views on pork: First of all, this wave of pig cycle is not as violent as the pig cycle in the context of the previous wave of African swine fever, because the capacity of fertile sows is not as serious as before, and there are many

Some points of interest in pork:

First of all, this wave of pig cycle is not as fierce as the pig cycle in the context of the previous wave of African swine fever, because the capacity of breeding sows is not as serious as before, and many large factories are very aggressive in expanding production, and in the context of the last round of high base, the natural elasticity will be much worse.

Then in the context of the overall low elasticity, we should prefer the target with a smaller market value, mainly because their own production capacity is very low.

The inflection point of pig prices is that it has bottomed out in the middle of this year, and will enter the upward stage from the second half of 2022 to 2023. However, due to the current market pessimism about the new energy sector and doubts about the sustainability of old infrastructure, the market may be speculated in advance.

For the preferred pig targets are mainly Aonong Biological, Tiankang Biological, Superstar Agriculture and Animal Husbandry and Makihara Shares.