Pork prices rebound, some concept stocks' valuations are already at low levels.

Recently, pork prices have seen a significant rebound. According to data from a business society, on July 8th, the price of live pigs rose to 11.02 yuan per kilogram, which has been continuously rising for the past 8 days, rising above 11 yuan for the first time since March 5th. Since mid-April, the price of live pigs has been fluctuating upwards, with the latest price rising by over 22% compared to the low price in mid-April. The continuous increase in pig prices recently is mainly due to factors such as the industry's capacity utilization, continued policy support to stabilize pig prices, etc. In terms of capacity, data from the National Bureau of Statistics shows that by the end of March, the stock of sows capable of reproduction was 39.04 million, a decrease of 1.35 million compared to the previous year. However, it is still 1.54 million higher than the latest regulatory target set by the Ministry of Agriculture and Rural Affairs of 37.5 million, indicating that there is still room for further reduction in capacity. Currently, pig prices are under pressure, and leading pig companies are using a combination of methods to reduce costs, such as optimizing feed formulas and lowering operating expenses, while also actively slowing down the pace of slaughter, reducing annual slaughter targets, and ensuring cash flow. According to Securities Times Data Bao statistics, there are over 20 concept stocks in A-shares related to pig farming, which have fallen by an average of 19.64% since the beginning of the year. Some of these concept stocks are currently undervalued.