China Pork Sector: Price recovery is key
- Latest demand uptrend against contracting sow inventories should infer further hog price recovery in China towards >RMB18/kg by 2H22
- Rising prices should also favour domestic and imported frozen meats across China
- Easing cost pressures and ongoing market consolidation to improve operating efficiency and margins ahead
- Our top pick is WH Group; we also like COFCO Joycome and New Hope Liuhe as they should benefit from the price recovery in China along with cost efficiency improvements