MUYUAN (02714) surged during intraday trading, now up over 3%, rising 3.46% as of press time to HK$37.08, with a turnover of HK$31.2999 million.

On the news front, according to Zhuochuang Information, in July and August, some large-scale farms began to accelerate production cuts due to policy restrictions, and the market entered a second wave of concentrated production reductions, with a cumulative decline of 2.50% over two consecutive months, and September reductions are still ongoing, with sow culling volumes beginning to decrease in mid-to-late September.

Kaiyuan Securities believes that short-term supply and inventory pressures persist, and the acceleration of sow reduction strengthens mid-term improvement expectations. Guojin Securities pointed out that in the medium to long term, the pig farming industry still has relatively excellent central profitability, and after African swine fever, the industry's rapid expansion saw many enterprises expanding capacity with low quality, so the industry's cost variance remains huge, and leading enterprises have ample excess profit potential, suggesting a preference for low-cost, high-quality enterprises.