Company Insight

BAF Agriculture JSC (HOSE: BAF) is a company operating in the agriculture and livestock farming sectors. The company is continuously working to complete its 3F (Farm - Feed - Food) closed-loop model to achieve comprehensive control from raw materials, breeding stock, and farming to meat processing and distribution to consumers.

Using the FCFF (Free Cash Flow to Firm) and P/E (Price-to-Earnings) valuation methods, we initiate coverage on BAF with a HOLD recommendation and a target price of VND 37,800 (representing an expected return of 12.3%). We believe the company's profits will be supported by high pig prices and stable raw material costs for animal feed. Additionally, the strategy to expand herd size, especially with the implementation of the new Animal Husbandry Law, is expected to help the company quickly broaden its market share.