The Board of Directors of Hoang Anh Gia Lai Joint Stock Company (HAG) recently announced ambitious targets: 8,624 billion dong in net revenue and 4,202 billion dong in after-tax profit. This profit goal, if achieved, would mark the highest in the company's history, nearly doubling last year's performance and signaling expectations of improved profit margins as HAG intensifies its focus on core agricultural segments.

Building on strong performance, the Board of Directors plans to propose a dividend of 500 dong per share at the 2027 General Shareholders Meeting, alongside continued reinvestment in its core business segments.

This ambitious plan is underpinned by robust growth in 2025, when net revenue reached 7,440 billion dong, an increase of nearly 29% year-on-year. After-tax profit during the same period hit 2,243 billion dong, doubling previous figures and establishing a new record since the company's inception.

Cash flow saw significant improvement. As of 31/12/2025, cash and cash equivalents stood at nearly 680 billion dong, a more than four-fold increase from the previous year-end. Total short-term assets reached 8,802 billion dong, comprising 7,292 billion dong in short-term receivables and 753 billion dong in inventory.

Hoang Anh Gia Lai's durian garden in Laos. Photo: HAG

Alongside strengthening its financial position, HAGL is actively managing its debt obligations. The company recently adjusted the maturity date for its 2016 bond issuance (Group A) from 30/12 to 26/3, expediting it by approximately nine months. This follows a 700 billion dong payment made on 23/1, which covered 280 billion dong in principal and 420 billion dong in interest. Following this, about 1,577 billion dong in unpaid interest remains, accruing at an annual rate of about 7,7%, including outstanding arrears.

Operationally, HAGL is accelerating its large-scale, high-value agricultural expansion. For 2026, the company plans to plant 7,000 ha of coffee, 1,000 ha of mulberry, and 700 ha of durian. This expansion is complemented by investments in processing infrastructure, including four wet coffee processing plants and one extraction plant.

Looking further ahead, HAGL aims to develop 20,000 ha of coffee by 2028, projecting over 700 million USD in annual revenue. This initiative is set to establish the company as the world's largest coffee plantation manager.

Market activity reflects strong leadership confidence. Since early march, Doan Nguyen Duc, known as "bau Duc" and Chairman of the Board of Directors of Hoang Anh Gia Lai, has consistently increased his stake in HAG. Following the acquisition of 5 million shares, he registered to purchase an additional 4 million. If these transactions are completed, his total holdings will reach approximately 314 million shares, representing nearly 24,77% of the company's charter capital. These transactions are scheduled to occur between 26/3 and 24/4 via order matching.

This record profit target, set against a backdrop of improving financial health and a clear expansion strategy, suggests HAGL is entering a new growth cycle. However, the successful realization of these goals remains contingent on agricultural commodity price fluctuations and the timely execution of upcoming projects.

Thi Ha