601020, planning to change control! Rising against the market trend, good news for the pig farming sector is here.

Three government departments carry out the central government’s work of procuring and storing centrally reserved frozen pork.

HuaYu Mining announces a trading suspension!

After the close of trading on April 2, HuaYu Mining (601020) released an announcement. The company’s controlling shareholder, Xizang Daoheng Investment Co., Ltd., is currently planning to transfer the company’s shares by means of a share agreement. This matter may result in a change in the company’s controlling rights. At present, Daoheng Investment and the counterparty are actively advancing the relevant work for this transaction. The company’s stock will be suspended from trading starting from the opening of trading on April 3, 2026, and the expected suspension period will not exceed 5 trading days.

HuaYu Mining is engaged in the exploration, mining, beneficiation, and trading businesses of non-ferrous metals. Its main products include zinc concentrates, lead-antimony concentrates (including silver), copper concentrates, and others. In 2025, domestic and overseas non-ferrous metals market demand remained strong, and prices kept rising. Against this backdrop, the company is fully benefiting from the continued buoyancy in the precious metals and minor metals markets, and it expects to achieve attributable net profit of 800 million yuan to 900 million yuan, representing an increase of 215.80% to 255.28% year over year.

As of June 2025, the domestic-controlled reserves include lead resources of 0.8183 million metric tons, zinc resources of 1.3860 million metric tons, antimony resources of 0.2037 million metric tons, silver resources of 2,224.95 metric tons, copper resources of 0.145 million metric tons, and gold resources of 59.59 metric tons; the overseas-controlled reserves include antimony resources of 0.2436 million metric tons and gold resources of 51.04 metric tons.

Central government carries out the procurement and storage of centrally reserved frozen pork

On April 2, the pork sector jumped sharply against the trend, and the pork index closed up 1.3%. Among constituent stocks, Juxing Agriculture and Animal Husbandry hit the daily limit; Dayu Biotech surged 7.4%; and stocks such as Shennong Group and Haid Group and Tiankang Biology also followed higher, with gains all exceeding 4%.

According to CCTV News on April 2, to maintain stable operation of the pork market and better play the role of central government reserves in regulation, the Ministry of Commerce, the National Development and Reform Commission, and the Ministry of Finance have recently been carrying out the central government’s work of procuring and storing centrally reserved frozen pork. In the next step, the Ministry of Commerce will continue to closely monitor the pork market situation, strengthen trend analysis, and coordinate with relevant departments to do a good job in reserve-based regulation, ensuring stable operation of the market.

Regarding the future trend of the hog market, Guoxin Securities stated that official capacity regulation will accelerate a rapid improvement in cash flow for leading companies, and is also expected to transform into dividend-type targets. Against the backdrop of an industry-wide contraction in capacity, the cost advantage of the leading players is expected to increase markedly, leading to a “strong get stronger” dynamic.

Shanxi Securities pointed out that the hog industry may face pressure in the first half of the year, but it is also a time window when capacity reduction is relatively well-timed. Under the guidance of the “anti-overcrowding/anti-nonessential overcapacity” policy for the hog industry, capacity reduction under policy regulation is also being advanced in parallel. This year, there may be a third round of capacity reduction with a relatively noticeable magnitude since 2021. The fundamentals and valuations of the hog farming industry are expected to recover. It is recommended to pay attention to hog farming stocks such as Wens Foodstuff Group, Shennong Group, and Juxing Agriculture and Animal Husbandry.

14 concept stocks turn a profit in 2025

According to Securities Times·Data Bao statistics, in the first quarter of 2026, financing funds added positions in four pork-related stocks, Muyuan Co., Ltd., Jingji Zhinnong, Huasun Co., Ltd., and Jinxinnong. Their net purchases via financing were 3.19 billion yuan, 1.14 billion yuan, 1.12 billion yuan, and 27.0246 million yuan, respectively.

Muyuan Co., Ltd. achieved operating revenue of 144.145 billion yuan in 2025, up 4.49% year over year; attributable net profit was 15.487 billion yuan, representing a year-on-year decline, mainly because hog market prices fell. The company expects to sell 75 million to 81 million head of commodity pigs in 2026. In terms of costs, in 2025 the company’s average fully loaded hog farming cost was around 12 yuan per kilogram, down 2 yuan per kilogram year over year, achieving the cost reduction target set at the beginning of the year. The company is confident in further reducing its fully loaded hog farming cost. Its 2026 cost target is to bring the full-year average cost to below 11.5 yuan per kilogram.

As of April 2, 29 listed pork companies have already released reports related to their 2025 performance. Based on annual report data, express reports, or midpoint values in forecasts, 14 companies reported profits. Muyuan Co., Ltd., Wens Foodstuff Group, and Smithfield Development ranked the top three, with net profit scales of 154.87 billion yuan, 52.35 billion yuan, and 51.05 billion yuan, respectively.

Wens Foodstuff Group recorded operating revenue of 103.884 billion yuan in 2025, and attributable net profit of 52.35 billion yuan, down 43.59% year over year. In 2025, the company cumulatively sold 40.48 million head of hogs (including rough pigs, fresh products, and piglets), completing the company’s annual striving target. This marks the company’s fourth consecutive year in which it basically met its annual striving target. The company sold 1.303 billion broiler chickens (including live chickens, fresh products, and prepared foods), up 8% year over year, reaching a record high.

Judging from changes in net profit, most companies saw year-on-year declines in net profit in 2025. Smithfield Development recorded a slight increase of 2.32%, while Delisi achieved a turnaround from loss to profit year over year.

‍Statement: All information from Data Bao does not constitute investment advice. There are risks in the stock market; investors should exercise caution.

Proofread by: Li Lingfeng