HPA Roadshow on December 1, 2025: Net profit margin reaches 21%, committing to transparency and ensuring Shareholder Interests

Hoa Phat Agriculture Development Joint Stock Company (HPA) hosted a seminar introducing investment opportunities on the afternoon of December 1^st in Ho Chi Minh City, attracting 400 investors, fund representatives, and securities companies. HPA leadership stated that the Company aims for revenue of VND 12,000 billion by 2030, committing to transparency in all activities and ensuring all shareholder interests.

Net profit margin reached 15.1%, ROE 30.6%, and ROA 21.4%. Accumulated in the first 9 months of 2025, profit after tax reached VND 1,295 billion with ROE at 56.4% and ROA at 31.7%.

Explaining the reason for HPA's superior performance after 10 years, Mr. Thang emphasized the role of the Hoa Phat culture, demonstrated by meticulousness and thoroughness from purchasing to production organization, and a transparent system helping to control production and sales costs effectively.

Mr. Nguyen Viet Thang, General Director of Hoa Phat Group and Chairman of the Board of Directors of HPA, speaks at the event.

Building a value chain with industrial scale

Hoa Phat invested in the agricultural sector in 2015. In 2016, HPA was established, holding the role of controlling the entire agricultural sector of Hoa Phat Group with a closed-loop value chain from animal feed production to livestock farming. Currently, HPA operates a system comprising 7 pig farming complexes on a total area of 387.9 hectares, 3 Australian cattle farms covering 625 hectares, 2 poultry farms spanning 50 hectares, and 2 animal feed mills with a total capacity of 600,000 tons. Annual production capacity reaches 750,000 commercial pigs, 150,000 Australian cattle, and 336 million chicken eggs.

Mr. Nguyen Viet Thang, General Director of Hoa Phat Group and Chairman of HPA, stated: "Agriculture is the sector contributing the second-largest revenue and profit to the Group, following only the steel sector. The year 2025 marks exactly 10 years since Hoa Phat started in agriculture."

According to Mr. Thang, from the beginning, Hoa Phat determined to invest in agriculture with a true industrial nature, very seriously and methodically.

According to Mr. Thang, from the beginning, Hoa Phat determined to invest in agriculture with a true industrial nature, very seriously and methodically. Unlike small-scale, fragmented agriculture, Hoa Phat invested heavily from the start and after 10 years has recorded remarkable achievements. At this stage, Hoa Phat Agriculture is eligible to separate into an independent company and list on the stock exchange. The IPO of 30 million shares on HOSE helps increase transparency, operational and financial autonomy, while creating opportunities to attract shareholders and strategic investors to expand investment, making Hoa Phat Agriculture a leading agricultural company in Vietnam.

Over 400 investors, representatives of funds, and securities companies attended the seminar introducing investment opportunities in HPA shares on the afternoon of December 1 in HCMC.

"I commit to you that in operations as well as all work, Hoa Phat Agriculture will always accompany and act for the interests of shareholders. In every activity, every management decision, we wish to do everything for the common benefit, with shareholder interests being paramount," Mr. Thang said.

Ms. Nguyen Thao Vy, Senior Manager, Research and Analysis Department, VietCap Securities JSC, assessed that HPA's closed self-sufficient model brings superior advantages in a context where consumers are increasingly concerned about food safety and traceability. The company controls the entire process from breeding stock to commercial products, ensuring consistent quality, which is particularly important while African Swine Fever remains complex.

Regarding financial efficiency, Ms. Vy stated that HPA leads the industry in ROE thanks to high net profit margins, good asset utilization efficiency, and low debt ratios. Notably, the company achieved this while operating primarily in the 2F chain (Feed-Farm), without yet integrating the processing and distribution segment like many other enterprises.

Regarding valuation, with an IPO price of VND 41,900/share, HPA has a trailing 12-month P/E of 6.5x, significantly lower than the industry median of 20.9x. The company plans to pay dividends of approximately VND 3,850/share in the next 12 months, corresponding to a yield of 9.2%, belonging to the high group among listed companies.

Optimizing livestock efficiency via closed feed-farm model

In 2024, HPA achieved net revenue of VND 6,909 billion with gross profit of VND 1,462 billion, an increase of 2.7 times compared to 2023. Profit after tax reached VND 1,040 billion, an increase of 4.7 times year-on-year. Net profit margin was 15.1%, ROE 30.6%, and ROA 21.4%. Accumulated in the first 9 months of 2025, profit after tax reached VND 1,295 billion with ROE at 56.4% and ROA at 31.7%. In the revenue structure, pig farming is the largest contributor with about 40%, followed by animal feed, cattle farming, and poultry.

Ms. Pham Thi Hong Van, General Director of HPA, stated that Hoa Phat Agriculture operates a closed integrated Feed-Farm business model from animal feed to farms. The company is self-sufficient in animal feed sources with 2 factories in Hung Yen and Dong Nai. In 2024, the sales proportion was 51% serving internal farms and 49% sold to the market through a network of 629 distributors with 150 SKU codes.

Ms. Pham Thi Hong Van, General Director of HPA, stated that Hoa Phat Agriculture operates a closed integrated Feed-Farm business model. Currently, HPA ranks among the Top 10 largest pig farming enterprises in Vietnam, Top 13 largest animal feed producers, leads in clean chicken egg production in the North, and holds the No. 1 market share in supplying live Australian cattle in Vietnam.

This model helps HPA optimize nutritional rations and formula costs because they are evaluated and tested directly at internal farms before market deployment. The company controls costs effectively by mastering both animal feed and breeds, two factors accounting for 70% of livestock costs. The company is steadfast in its orientation to provide safe food, minimizing antibiotic use, and is ready to comply with regulations banning antibiotics for disease prevention and growth promotion from 2026, absolutely avoiding banned substances and lean-meat agents.

5 key factors behind HPA's success and differentiation

HPA masters high-quality breeding stock with DanBred pigs from Denmark having the world's highest reproductive productivity, Hy-line chickens from the US with high and stable laying rates, and beef cattle from Australia with good meat quality and weight gain. Specifically for pigs, productivity reaches 33 to 34 weaned piglets per sow per year, 1.5 times the Vietnamese average (22 to 25 piglets). All farms are invested methodically according to European technology with synchronized, modern, automatic equipment to control barn microclimates in real-time and automate feeding.

Aiming for VND 12,000 billion revenue by 2030, committing to transparency

During the exchange with investors, Mr. Nguyen Viet Thang stated that HPA can pay annual cash dividends and has no plan to raise capital through additional share issuance. With an investment plan of about VND 1,500 billion by 2030, equity combined with funds mobilized from the IPO is assessed as sufficient to meet development needs. The company has almost no medium-term debt, mainly using working capital to serve production and business activities.

Investors exchange and ask questions to the Board of Management about HPA.

Regarding the strategy of the 30 million share IPO, Mr. Thang said this is the first time Hoa Phat Group has brought a specialized agricultural company to the market, both creating a premise to access the capital market and paving the way to attract strategic investors in the future to expand the value chain. Hoa Phat continues to hold a controlling interest in HPA. Vietcap is the exclusive advisor and issuing agent for this IPO and does not perform underwriting.

Ms. Pham Thi Hong Van stated that capital from the IPO will be used to restructure capital sources, enhance financial capacity, supplement working capital, reduce debt, and invest in expanding three pig farms and a third animal feed mill in the North. Upon completion, total capacity will reach 900,000 commercial pigs and 1 million tons of animal feed per year by 2030. The third animal feed mill is expected to break ground in 2027; prior to that, the company will maximize the capacity of the two existing factories to meet internal demand and market development.

The HPA General Director emphasized that the company has a strong corporate culture foundation and invests heavily in training; many internal personnel have developed into management levels, capable of taking on expansion projects.

Regarding business strategy, HPA maintains a model of selling breeding pigs combined with animal feed instead of solely focusing on commercial pig farming. In the Northern market, Hoa Phat is a breeding pig price, selling at about VND 200,000 to 250,000 higher than the general level thanks to stable quality and superior weight gain capability, helping pigs reach market weight about two weeks earlier. Many farming households are willing to "leave barns empty" to wait for Hoa Phat breeding pigs due to the purebred source and disease safety. The average production cost is about VND 42,000 per kg while the selling price fluctuates between VND 59,000 to 61,000 per kg, pushing the profit margin of the pig farming segment above 30%.

Investors are very interested in the business strategy and achievements gained over 10 years of building and developing HPA.

Sow productivity currently reaches 33 to 34 weaned piglets per sow per year, 1.5 times the average in Vietnam of 22 to 25 piglets. DanBred representatives once noted this figure far exceeded the committed level of 30 piglets when the two sides cooperated in 2015. HPA has three purebred farms with 600 GGP (Great Grandparent) pigs; every two years, about 160 DanBred breeding pigs are imported for re-herding, with the remainder proactively maintained by the system.

regarding land bank, Mr. Thang assessed this as the biggest difficulty when expanding due to increasingly strict regulations on distance from farms to residential areas under the Law on Livestock. After many years of searching, the company has only identified three areas eligible to develop three additional farms. HPA's entire land bank is 50-year project land with stable usage rights, including both one-time payment and annual payment lots. Asset value has recorded a significant increase; for example, land prices at the Hung Yen factory increased from over 50 USD to nearly 150 USD per square meter.

The HPA General Director stated that although the Central region suffered severe natural disasters and floods in 2024, HPA's farm system was not affected thanks to the thorough assessment of hydrological factors and flood marks many years prior to deciding on investment locations. Regarding biosecurity, Ms. Van emphasized the deciding factor lies in seriousness and absolute compliance with processes. After 10 years of operation, there are still farms maintaining negative status for Blue Ear Disease (PRRS) without vaccination, even though the virus can transmit through the air for distances of up to 100 to 200 km and has caused major damage to the livestock industry.

In the strategy to develop the Food segment to complete the 3F model, Mr. Thang said Hoa Phat is discussing with several partners to study building a distribution chain but will not deploy immediately because doing Food properly requires a distribution system to the end consumer, not stopping at slaughter or preliminary processing. Hoa Phat does not aim to "do it just for show" but aims for substantive efficiency.

For the broiler chicken segment, the company has not invested because the white chicken market is small, competes directly with imported goods, and faces difficulty in consuming breast meat, while colored chickens are local in nature, consumed mainly on a small scale, and not suitable for HPA's industrial model. In the egg segment, the lack of expansion to the South stems from the specific nature of the egg-laying poultry industry, which fluctuates strongly, with times of oversupply leading to erratic prices.

Ms. Van said HPA has visited China three times to survey the multi-story farm model. However, even in this market, the model is still in the process of perfection, so Hoa Phat continues to monitor and will deploy when deemed suitable for actual conditions.

Regarding the hog price outlook, the company builds a cautious scenario for 2026 with an average price of about VND 60,000 per kg and expected profit of VND 1,200 to 1,260 billion. Reality may be more positive as the total sow herd decreased by nearly 1 million heads following floods and African Swine Fever, leading to a risk of supply shortage in the coming years.

Explaining the reason HPA excels after 10 years, Mr. Thang emphasized the role of Hoa Phat culture, demonstrated in meticulousness and thoroughness from purchasing to production organization, and a transparent system helping to control production and sales costs effectively. The company does not expand massively but steadfastly controls the entire value chain, does not operate contract farms or outsourcing to avoid conflicts of interest. Hoa Phat applies industrial thinking to agriculture, closely monitoring every cost component from electricity and water to material consumption. He believes that in pig farming, to stand firm in the market, one must first "conquer oneself" through operational discipline and cost control capability.

In the animal feed segment, Ms. Van stated that high profit margins stem from governance and purchasing policy. HPA does not speculate on raw materials but analyzes multiple information sources to select appropriate buying times. Large internal volume helps optimize production costs. The company continuously tests additives to optimize rations for each growth stage, avoiding "emotional" factors that inflate costs.

For the cattle fattening segment, Ms. Van assessed the level of competition as currently quite fierce due to livestock units that are not yet standard regarding food safety and hygiene. However, with the roadmap of strict management by authorities to promote domestic production and raise food safety standards, she believes that standard operating enterprises like HPA have the opportunity to enter a favorable period, potentially a "golden age" for the industry.

Looking from a cyclical perspective, Mr. Thang said the pig farming market usually moves in a three-to-five-year cycle. Hoa Phat's advantage is originating from the industrial sector, so it is accustomed to controlling indicators and costs. When hog prices fall, the company focuses on analyzing cost components to maintain competitiveness, keeping costs in the lowest group in the market. When in the leading group regarding cost, the enterprise still has the ability to "fight well" through fluctuation cycles.

By 2030, HPA aims to increase animal feed capacity to 1,000,000 tons per year, commercial pigs to 900,000 heads, cattle farming scale to 73,000 heads, and maintain chicken egg production at 336 million eggs per year. This plan requires a total investment of over VND 1,500 billion, whereby revenue is expected to reach over VND 12,000 billion, profit after tax about VND 1,750 billion, and ROE maintained above 25%.

By 2030, HPA aims to increase animal feed capacity to 1,000,000 tons per year, commercial pigs to 900,000 heads, cattle farming scale to 73,000 heads, and maintain chicken egg production at 336 million eggs per year.

HPA commits to information transparency with a full, timely financial reporting system and strict compliance with legal regulations to ensure shareholder interests. The growth strategy focuses on focused investment, strict risk management, not sacrificing long-term efficiency for short-term goals. Food safety, environmental protection, animal welfare, and community contribution are identified as consistent priorities.

HPA commits to information transparency with a full, timely financial reporting system and strict compliance with legal regulations to ensure shareholder interests. The growth strategy focuses on focused investment, strict risk management, not sacrificing long-term efficiency for short-term goals.

After 10 years of development, the company currently ranks among the Top 10 largest pig farming enterprises in Vietnam, Top 13 largest animal feed producers, leads in clean chicken egg production in the North, and holds the No. 1 market share in supplying live Australian cattle in Vietnam.

The company is offering 30 million shares to the public at a price of VND 41,900 per share, expecting to list on the HOSE exchange in early 2026. Investors register to buy HPA shares from November 24 to before 16:00 on December 15 through the distribution agent, Vietcap Securities JSC. The company will allocate shares on December 16-17, and investors pay before December 24. HPA expects to announce offering results from December 25-30 and send share ownership certificates to investors in January 2026, concurrently listing on HOSE.