Hoa Phat Agriculture lists on HCMC bourse, rules out share issuance to avoid dilution

Hoa Phat Agriculture Development JSC made its debut on the Ho Chi Minh City Stock Exchange on Thursday, listing 285 million shares and saying it has no plans to issue additional shares in 2026-2030 to avoid diluting existing shareholders.

The shares of Hoa Phat Agriculture (ticker HPA), opened at a reference price of VND41,900 dong ($1.6) per share, valuing the company at nearly VND11.94 trillion ($459.64 million), according to the exchange.

The company is an arm of Hoa Phat Group, Vietnam's top steelmaker.

At the listing ceremony, Tran Dinh Long, chairman of Hoa Phat Group, said the event marked a significant milestone for both the agriculture arm and the group as a whole.

“Nineteen years ago, Hoa Phat listed its flagship steel business. Today, after a decade in agriculture – a challenging sector – we are listing again,” Long said, adding that Hoa Phat Agriculture has emerged as one of Vietnam’s leading livestock producers.

After 10 years of development, agriculture has become Hoa Phat Group’s second-largest contributor to revenue and profit after steel.

The listing is expected to enhance transparency, credibility and access to secondary capital markets, with proceeds used to strengthen the balance sheet, restructure funding sources, support working capital, and expand operations.

The company reported strong growth between 2022 and 2024. In 2025, revenue rose 18% year-on-year to nearly VND8.33 trillion ($320.6 million), exceeding the year's target by 4%, while net profit jumped 55% to VND1.6 trillion ($61.61 million), beating the plan by 22%.

Pig farming remained the largest business segment, accounting for about 44% of total revenue. In 2025, commercial pork output exceeded 380,000 heads, up 5.9% from the previous year, while breeding pig output rose 39.5% to around 280,000 heads.

Hoa Phat Agriculture said productivity at its sow farms reached 33-34 weaned piglets per sow per year, around 1.5 times the national average, supported by DanBred genetics from Denmark and strict biosecurity farming practices.

Feed production reached a record 357,000 tons, up 5.5% year-on-year and the highest level in the company’s 10-year history. Of this, more than 177,000 tons were sold to the market, up 7.3%, while 180,000 tons were supplied internally to Hoa Phat farms.

Hoa Phat currently holds the largest market share in Australian beef imports, leads the clean egg market in northern Vietnam, ranks among the top 10 producers by sow herd size, and is among the country’s top 13 animal feed manufacturers.

Looking ahead to 2030, the company targets revenue of more than VND12 trillion ($462 million) and net profit of about VND1.75 trillion ($67.39 million), with return on equity maintained above 25%.

Over the next five years, it plans to invest more than VND1.5 trillion ($57.76 million) to build three additional pig farms and a third feed plant in northern Vietnam, lifting total feed capacity to 1 million tons per year and commercial pork output to 900,000 heads annually.

For the 2026-2030 period, Hoa Phat Agriculture said it does not plan to issue additional shares to raise capital, citing its commitment to avoiding shareholder dilution.