BAF Targets 793B VND 2026 Net Profit, 20% Stock Dividend, and 1,200B VND Bond

Overview

Công ty Cổ phần Nông nghiệp BAF Việt Nam (BAF) has announced ambitious 2026 financial targets, including a record net profit of VND 793 billion, representing a near 8-fold increase from 2025. The company plans to fund its expansion through a VND 1,200 billion convertible bond and a strategic joint venture with China’s Muyuan Group, while rewarding shareholders with a 20% combined stock dividend and bonus share issuance.

Key Facts

• Targets 2026 net profit of VND 793 billion, approximately 8 times the 2025 result.
• Aims for 2026 revenue of VND 8,431 billion, a 70% year-on-year increase.
• Plans a 10% stock dividend and a 10% bonus share issuance, totaling 60.8 million new shares.
• Will issue a maximum of VND 1,200 billion in convertible bonds (12 million bonds at VND 100,000 each).
• Strategic joint venture with China’s Muyuan Group for a VND 12,000 billion high-rise pig farming project in Tây Ninh, targeting 64,000 sows and 1.6 million market pigs annually.
• Expansion includes 16 new farms, raising total sow herd to 145,000, and commissioning a third feed mill in Bình Định with 300,000-ton annual capacity.
• ESOP issuance of up to 8 million shares at VND 10,000 per share, representing 2.63% of outstanding shares.

What Happened

According to documents released ahead of its 2026 Annual General Meeting of Shareholders, scheduled for April 23, 2026, BAF has set aggressive growth targets for the coming year. The company aims to achieve revenue of VND 8,431 billion and net profit of VND 793 billion, which would be a record high. This expansion is underpinned by a detailed operational plan to scale production, including developing 16 new farms, nearly doubling its sow herd to 145,000, and increasing commercial pig output to approximately 1.247 million heads.

A cornerstone of the strategy is a VND 12,000 billion high-rise pig farming project in Tây Ninh, developed in strategic cooperation with China’s Muyuan Group. The project is scheduled to break ground in Q3 2026 and commence operations from Q3 2027. To fund its growth, BAF plans to issue up to VND 1,200 billion in convertible bonds. Concurrently, the company intends to distribute profits through a 10% stock dividend and issue a 10% bonus share from capital surplus, with shares from both issuances being freely transferable.

Market Context

BAF is listed on the HOSE exchange and operates in Vietnam’s agriculture and food production sector. The announcement of these long-term targets and capital plans provides a clear growth narrative for investors, contrasting with near-term market volatility often seen in commodity-driven agricultural stocks. The scale of the projected profit increase and the involvement of a major international partner like Muyuan Group are likely to draw significant investor attention to the stock’s strategic repositioning.

Strategic Significance

The 2026 targets signal a transformative shift for BAF from a regional player to a scaled, integrated livestock producer. The joint venture with Muyuan Group, a global leader in pig farming, provides not only capital but also critical technology and operational expertise for the high-rise farming model. The concurrent convertible bond issuance and shareholder return policy balance aggressive growth investment with immediate capital structure management and investor rewards, aiming to support both expansion and stock liquidity.

What to Watch

• Shareholder approval of the 2026 business plan, dividend policy, and bond issuance at the AGM on April 23, 2026.
• Progress on the Tây Ninh joint venture project, particularly the groundbreaking in Q3 2026.
• Quarterly financial results in 2025 and 2026 to track progress toward the ambitious revenue and profit targets.
• Details on the pricing and terms of the VND 1,200 billion convertible bond issuance.
• Commissioning of the new 300,000-ton feed mill in Bình Định and construction starts on additional feed mills in Tây Ninh and Hải Phòng.