The Ocean Industry is Poised for Growth and Strength
Aquaculture Sector Outperforms Market with Gains, China Aquatic Co. Approaches Daily Limit

On March 16, the livestock sector led the market rally against the trend, with significant gains in sub-sectors such as marine fishing and aquaculture. As of the latest report, Zhongshui Fishery (000798.SZ) approached the daily limit, while Huisheng Biological (300871.SZ), Zhangzidao (002069.SZ), Chuangkou International (600097.SH), Hao Dangjia (600467.SH), Guolian Aquatic Products (300094.SZ), Yisheng Co., Ltd. (002458.SZ), and Dahu Shares (600257.SH) also rose.

On the news front, the magazine Qiushi will publish an important article titled “Promoting High-Quality Development of the Marine Economy.” The development plan for the marine economy during the 14th Five-Year Plan period is being drafted, with increased policy support in industry, technology, finance, and fiscal areas. The goal is to encourage social capital to actively participate in developing the marine economy, strengthen and expand the marine industry, and improve overall planning for major bays.

Additionally, Cheng Kaimin, a National People’s Congress delegate and director of Guangdong Marine Feed Technology, suggested during this year’s two sessions to fully empower the aquaculture industry with AI technology. Focus areas include seedling, feed, and smart farming breakthroughs, increasing automation and intelligence in smart aquaculture, and supporting the R&D of fishing robots and intelligent feeding equipment. This marks market attention on AI-driven transformation of traditional aquaculture, with smart farming technology seen as a key direction for industry upgrading.

Everbright Securities stated that considering the currently ample supply of pigs and the upcoming seasonal slowdown in consumption after the holiday, pig prices are likely to remain at the bottom from March to April, with losses possibly extending further. Looking back at the last two cycles, the livestock industry experienced about six months of losses, followed by rapid depletion of cash flow, which accelerated capacity reduction. Given the significant variance in costs within the industry, we believe high-cost producers will be the first to reduce capacity. We remain optimistic about the core competitiveness of low-cost livestock enterprises.