Hoa Phat cuts stake in its agriculture subsidiary before listing

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Vietnam’s Hoa Phat Group has sold more than 1.3 million shares of Hoa Phat Agriculture Development (HPA), reducing its ownership from 85% to 84.54%. Despite the sale, Hoa Phat remains the parent company.

The sale was completed through a negotiated deal on January 16, 2026, just before HPA finalized the procedures for its stock market listing. The timing of the divestment surprised observers, as it came during a critical stage in HPA’s roadmap to debut on the Ho Chi Minh Stock Exchange (HoSE).

Control maintained, liquidity boosted

On January 17, HPA confirmed its shareholder list with the Vietnam Securities Depository and Clearing Corporation, moving closer to its official listing on HoSE. The company plans to list 285 million ordinary shares, each with a par value of USD 0.40.

Hoa Phat’s sale of a small stake appears to be designed to optimize ownership while improving liquidity and the attractiveness of HPA shares once listed. The move follows HPA’s successful initial public offering (IPO) on January 7, which raised USD 50.3 million from 30 million shares.

The IPO lifted charter capital from USD 102 million to USD 114 million. At USD 1.68 per share, HPA’s pre-money valuation reached approximately USD 428 million. Based on this valuation, the company expects a dividend yield of around 9.2% over the next 12 months, including the remaining 2025 dividends and an interim payout for 2026.

Looking further ahead, HPA plans to maintain a minimum dividend of USD 0.12 per share annually from 2026 to 2030, equivalent to a yield of about 7.2%.

HPA’s business profile

Founded in 2016, HPA operates across animal feed production and livestock farming. Its portfolio includes HP Feed and BigBoss feed brands, breeding and commercial pigs, Australian beef cattle, and clean eggs.

The company owns a large-scale farming system that comprises:

• 7 pig farms with a total area of nearly 388 hectares.
• 3 Australian cattle farms covering 625 hectares.
• 2 poultry and egg farms spanning approximately 50 hectares.

HPA’s revenue first exceeded USD 400 million in 2020, supported by a record net profit of USD 67 million. Performance weakened over the next three years but rebounded strongly in 2024.

Recovery and growth targets

The company has shown clear signs of recovery. In 2024, net revenue reached USD 283 million, while net profit after tax rose to USD 41 million, up 12.2% and 470% year-on-year. During the first nine months of 2025, revenue climbed to USD 250 million and net profit surged to USD 52 million, representing increases of 28% and 88% compared with the same period in 2024.

For 2025, HPA targets revenue of USD 320 million and net profit of USD 60 million, marking further growth though still below its 2020 peak.

After nearly a decade of development, HPA has built a fully integrated value chain from feed production to large-scale farming. It ranks among Vietnam’s leaders in Australian beef cattle, holds the top egg market share in the north with nearly one million eggs produced daily, and is a major player in pig farming with a capacity of 750,000 pigs annually.

By 2030, the company aims to:

• Increase feed production capacity to 1 million tons/year.
• Raise commercial pig output to 900,000 heads/year.
• Expand cattle herd size to 73,000 heads/year.
• Maintain egg production at around 336 million eggs/year.

Financial targets include revenue above USD 480 million, net profit of USD 70 million, and return on equity sustained above 25%.