Vietnam's agri major BAF targets sixfold profit jump, bets on high-rise pig farming complexes

BAF Vietnam Agriculture JSC (HoSE: BAF) is targeting a more than sixfold increase in net profit this year as the top Vietnamese agribusiness accelerates investment in large-scale, high-tech livestock operations, positioning itself for a strong rebound after a challenging 2025.

According to documents released ahead of its AGM scheduled for April 23 in Ho Chi Minh City, BAF aims to generate revenue of VND8.43 trillion ($320.08 million), up 67% year-on-year, and net profit of VND793 billion ($36.94 million).

The ambitious targets reflect both improving market conditions and the company’s aggressive capacity expansion strategy.

A key driver of growth is output expansion. BAF plans to sell more than 1.2 million pigs in 2026, representing a 60% increase from the previous year. To support this, the company has scaled its herd to nearly 900,000 head by the end of 2025, while total assets rose 44% to VND10.78 trillion ($409.26 million).

At the center of its expansion is a high-rise, technology-driven livestock complex in the southern province of Tay Ninh, developed through a joint venture.

With total investment of VND12 trillion ($455.58 million), the facility is designed to house 64,000 breeding sows and produce up to 1.6 million hogs annually. The project reflects a broader shift toward vertically integrated, industrial-scale farming models in Vietnam’s livestock sector.

Beyond Tay Ninh, BAF is advancing several other major projects, including the Gia Han high-tech farming complex in the central province of Quang Tri, with total investment of VND2.4 trillion ($91.12 million), and the Thanh Dat farm cluster in the central province of Gia Lai. These developments are expected to significantly enhance the company’s production footprint across key regions.

The ramp-up is already underway, with multiple farms, such as Tay An Khanh, Truong Loc and Phu Yen 2, beginning operations in the first quarter of 2026, contributing to rising output levels.

To complete its closed-loop “3F” (feed–farm–food) value chain, BAF has also brought its third animal feed plant online in Binh Dinh, with an annual capacity of 300,000 tons. This move strengthens the company’s control over input costs and ensures more stable supply for its farming operations.

Market conditions have further supported the outlook. Vietnam’s live hog prices surged to around VND81,000 ($3.08) per kilogram during the Lunar New Year period before easing to VND62,000-68,000/kg in early April. BAF’s strategy of building inventory in late 2025 is expected to help it capitalize on the cyclical recovery in pork prices.

To fund its capital-intensive expansion, BAF has reinforced its balance sheet by raising charter capital to more than VND3.04 trillion ($115.41 million) through a private placement of 65 million shares, alongside mobilizing an additional VND1.5 trillion ($56.95 million) via bond issuances.

BAF shares closed at VND34,950 ($1.33) each on Friday.