BAF Vietnam Acquires 25% Stake in Hung Phat Farm One for VND 54 Billion

Overview

BAF Vietnam (BAF) has announced the acquisition of a 25% stake in Hung Phat Farm One, a pig farming enterprise in Gia Lai, for VND 54 billion. The move aligns with BAF’s expansion in the livestock sector, supported by strong Q1 2026 financial results where revenue rose 56.8% and net profit increased 54.5%.

Key Facts

• BAF acquires 25% of Hung Phat Farm One’s charter capital for VND 54 billion.
• Hung Phat Farm One has a charter capital of VND 216 billion and is based in Ia Pa district, Gia Lai province.
• The company was established on January 26, 2021, focusing on pig farming and piglet production.
• BAF’s Q1 2026 net revenue reached VND 1,762 billion, up 56.8% year-on-year.
• Q1 2026 net profit after tax was VND 206 billion, up 54.5%.
• Hog prices in Q1 2026 averaged VND 62,000/kg, supporting margin recovery.
• BAF’s pig output in Q1 2026 reached nearly 240,000 head, up 50% year-on-year.
• BAF targets full-year 2026 net profit of VND 793 billion, implying Q1 achieved 26% of the target.

What Happened

BAF Vietnam announced via a filing that it will acquire a 25% stake in Hung Phat Farm One, a limited liability company specializing in pig farming and breeding. The transaction value is VND 54 billion, corresponding to 25% of Hung Phat Farm One’s charter capital of VND 216 billion. BAF has appointed Mr. Truong Anh Tuan, Deputy General Director, as the authorized representative to manage this stake.

Separately, BAF released its Q1 2026 consolidated financial statements, showing robust growth. Revenue rose 56.8% to over VND 1,762 billion, and net profit after tax increased 54.5% to over VND 206 billion. The company attributed the profit surge to a recovery in hog prices, which averaged VND 62,000/kg in Q1 2026, and a 50% increase in pig output to nearly 240,000 head, driven by herd expansion and new farm operations. Despite rising input costs for feed ingredients (corn, soybeans up 5-15%), BAF maintained positive margins through its integrated Feed-Farm-Food value chain.

Market Context

BAF shares closed at VND 35,600 on May 14, 2026, up 0.14% with volume of 1.46 million shares. The stock trades on HOSE. The acquisition and strong Q1 results come amid a cyclical recovery in Vietnam’s pig farming sector, with hog prices stabilizing after previous downturns. BAF’s expansion strategy, including this stake purchase, positions it to capture market share in the protein supply chain.

Strategic Significance

The acquisition of a 25% stake in Hung Phat Farm One is a tactical move to increase BAF’s presence in Gia Lai, a key livestock region. This aligns with BAF’s strategy to scale up pig production and strengthen its supply chain. The Q1 results demonstrate operational leverage from higher volumes and favorable pricing, supporting the company’s full-year guidance of VND 793 billion net profit. The deal also reflects BAF’s focus on minority investments to expand capacity without full consolidation, potentially reducing capital outlay.

What to Watch

• Q2 2026 earnings release for sustained margin and volume trends.
• Hog price movements in Vietnam, particularly any deviation from the VND 62,000/kg level.
• Further M&A activity or farm expansions by BAF in the Central Highlands.
• Integration progress and operational performance of Hung Phat Farm One.
• Feed cost trends (corn, soybean prices) and their impact on BAF’s cost structure.