HPA Q1 2026 Profit Falls 15.2% on Lower Hog, Cattle Sales
This Aveluro analysis covers HPA. The classified event type is earnings miss, with negative sentiment and a deterministic market-impact score of 4.9/10. Aveluro classifies this story as a negative catalyst and risk signal for the affected stock. Source coverage came from Tuổi Trẻ - Kinh doanh, classified as a primary/top-tier source.
Key Facts
Caveat: Not investment advice. · How Aveluro computed this: Aveluro combines extracted event facts, source credibility, ticker context, and market data. Scores are deterministic research signals, not recommendations.
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Overview
Hoa Phat Agriculture (HPA) reported Q1 2026 net revenue of 1,764 billion VND, down 11.3% year-on-year, and after-tax profit of 345 billion VND, down 15.2%. The decline was attributed to lower sales volumes of hogs and cattle, as well as a decrease in hog prices. HPA remains the most profitable among listed livestock peers by net margin.
Key Facts
- HPA Q1 2026 net revenue: 1,764 billion VND, down 11.3% YoY.
- After-tax profit: 345 billion VND, down 15.2% YoY.
- Net profit margin: 19.6%, highest among peers (BAF 11.7%, Dabaco 9.1%, Masan MEATLife 5.9%).
- Hog and cattle sales volumes declined; hog prices fell versus Q1 2025.
- HPA closed at 34,500 VND on May 21, 2026, up 1.47% with low volume of 22,900 shares.
- Peer BAF reported 206 billion VND profit (+54% YoY) on 1,762 billion VND revenue (+57%).
- Dabaco profit fell 26% to 374 billion VND despite 14% revenue growth.
- Masan MEATLife profit rose 27% to 147 billion VND on 20% revenue growth.
What Happened
HPA released its Q1 2026 financial statements showing a decline in both top and bottom lines. The company explained that lower hog and cattle sales volumes, combined with a drop in hog prices, weighed on results. The profit decline came despite HPA maintaining the highest net profit margin in the sector at 19.6%, reflecting its cost structure advantages.
The earnings miss contrasts with mixed results across the livestock sector. BAF posted strong profit growth of 54% on a 57% revenue surge, driven by a 50% increase in hog output to nearly 240,000 head. Dabaco saw profit fall 26% despite higher feed sales, citing rising input costs and unfavorable forex. Masan MEATLife recorded a 27% profit increase on broad-based revenue growth.
Market Context
HPA shares closed at 34,500 VND on May 21, 2026, up 1.47% but on thin volume of 22,900 shares, suggesting limited market reaction to the earnings release. The stock trades on HOSE. The broader agriculture sector has been under pressure from volatile hog prices and rising feed costs, though HPA’s high margin provides a buffer. The Q1 results mark a reversal from the sector’s generally improving profitability trend seen in 2025.
Strategic Significance
HPA’s earnings decline highlights the cyclical nature of livestock farming, where volume and price swings directly impact profitability. However, HPA’s net margin of 19.6% remains well above peers, indicating structural cost advantages from its integrated model. The company’s ability to sustain margins through a downturn is a key differentiator. For long-term investors, the focus is on HPA’s capacity to manage input costs and maintain its margin leadership as the hog cycle turns.
What to Watch
- Q2 2026 hog price trends and HPA’s sales volume recovery.
- HPA’s cost control measures and any updates on feed input costs.
- Peer earnings for Q2 2026 to gauge sector-wide margin compression.
- HPA’s dividend policy or share buyback announcements given its high profitability.
- Any expansion plans or capacity additions in the livestock segment.