HK Stock Market Move | Pork concept stocks rebound in early trading as more deleveraging signals emerge in the hog industry chain; institutions say pig enterprise performance upside is expected.

Pork concept stocks rebounded in early trading. As of press time, DEKON AGR (02419) rose 4.48% to HK$58.35; Muyuan Foods Group (02714) rose 4.40% to HK$37.48; COFCO JOYCOME (01610) rose 3.69% to HK$1.125. On the news front, entering October, deleveraging signals in the hog industry chain continued to increase: on one hand, leading pig enterprises proactively reduced sow production capacity, with piglet prices and farming profits continuing to hit bottom; on the other hand, breeding sow numbers continued to decline in September, but the pace of deleveraging narrowed compared with August. Data showed that in September, breeding sow inventories fell 0.52% and 0.86% month-on-month, according to Yongyi and Mysteel, respectively. Combined with cumulative deleveraging of over 6.5% in July-August, full-year capacity deleveraging is expected to reach 10%. Orient noted that it is bullish on the hog farming sector. The market has suffered deep losses for more than eight months, capacity reduction has begun to accelerate, and policy continues to strengthen restrictions on industry capacity. The medium- to long-term price upcycle is expected to be sustainable, and pig enterprise performance upside is expected.