Company Insight

Update report with HOLD recommendation and target price at VND 34,200

BAF Agriculture JSC (HOSE: BAF) is an enterprise operating in the agriculture and livestock industry. The company is oriented to increasingly perfect the 3F closed chain model to comprehensively control from raw materials, breeds and farms to meat processing and distribution to consumers. Based on the FCFF and P/E methods, we publish an updated report with BAF and give a HOLD recommendation with a target price of 34,200 VND, equivalent to an expected return of 6% compared to the current price. 

Update Q3 and 9M/2025 business results

In Q3/2025, BAF recorded revenue of VND 1,136 billion (-13.5% YoY) and net profit of VND 22 billion (-63.3% YoY), of which all revenue came from the livestock segment. Excluding the contribution of the agricultural segment, revenue still grew well thanks to the continued increase in the output of pigs for slaughter, reaching 213 thousand heads. However, the price level of pigs decreased in Q3 due to the epidemic affecting demand and consumer psychology, combined with the quick mentality of livestock households to slaughter, causing a short-term increase in supply. The sharp increase in costs during the period caused a sharp decrease in net profit. However, in the first 9 months of 2025, BAF still recorded a total revenue of VND 3,647 billion and net profit of VND 365 billion. This result corresponds to a growth rate of -7% (due to no longer recording revenue from agricultural product sales) and +70% over the same period, respectively. Gross profit margin remained at 23.9% and net profit margin at 10%, both increased on a year-on-year basis.