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
