CITIC Securities: Continues to be optimistic about the synchronization of the beef and dairy cattle cycles.

The report from CITIC Securities indicates that since the third quarter, the production reduction due to heat stress in dairy cows, combined with the rebound in demand for double festivals stockpiling, has eased the seasonal supply-demand contradiction. Short-term digestion in the livestock industry has slowed down, but the long-term reversal logic remains. Since the second quarter, beef prices have continued to rise, and the impact of the liquidation of beef cows since 2024 has continued to show. It is expected that there will be downward pressure on beef supply in 2026, and it is judged that there is still room for upward movement in live cattle prices. We continue to be optimistic about the resonance of the beef and milk cycle, recommending leading livestock breeding companies and the industry-leading full industry chain leaders with high self-sufficiency rates in raw milk.