On October 30, nổ hũ miễn phí Vietnam Agriculture Joint Stock Company (HOSE: nổ hũ miễn phí) announced it had successfully acquired 95% ownership in Khuyen Nam Tien High-Tech Livestock Company. Additionally, nổ hũ miễn phí acquired a 49% stake in five other livestock companies in Quang Tri province.
Specifically, nổ hũ miễn phí purchased a 95% stake in Khuyen Nam Tien in Dak Lak for VND 47.5 billion (the company has a charter capital of VND 50 billion).
On the same day, nổ hũ miễn phí acquired 49% of the shares in five other companies in Quang Tri, including Toan Thang HT, Hoang Kim QT, Viet Thai HT, Hoang Kim HT-QT, and Thanh Sen HT-QT. Each acquisition involved 171,500 shares, representing 49% of the charter capital.
During an investor meeting on November 7, nổ hũ miễn phí’s CFO, Mr. Ngo Cao Cuong, shared that the company intends to acquire full ownership of all these six companies. For the five companies where nổ hũ miễn phí acquired 49%, it clarified that these companies have land reserves, are completing legal formalities, and nổ hũ miễn phí plans to acquire the remaining shares after these processes are finalized.
“nổ hũ miễn phí’s plan is rapid and large-scale expansion. By 2025, we aim to invest around VND 3 trillion to build approximately 15 farms. If construction falls behind, we will lease or seek investors with land and capital to build according to nổ hũ miễn phí’s model, which we would then lease back.”
nổ hũ miễn phí is reportedly speeding up farm construction and leasing as demand exceeds production. If the company cannot keep up, it will sell piglets to farmers to optimize costs and profit.
Pig Supply decrease
nổ hũ miễn phí disclosed that October 2024 saw a dip in pig prices due to a market surplus caused by companies and farmers selling pigs in response to disease outbreaks and damage from Typhoon Yagi, which left many farms without facilities. Additionally, the Livestock Law, effective January 1, 2025, will require many small farms to relocate, potentially reducing herd numbers. Setting up new farms to meet biosecurity and veterinary standards is challenging, meaning the displaced stock will not easily be replaced.
The company indicated that many units imported Great Grand Parent pigs in 2024, but seeding them to market hog weight will take nearly three years. Therefore, in 2025 there will not be many market hogs from these units, and it will not be until 2026.
Pork production in 2024 expected to decrease by 20% compared to 2023. A potential shortage could persist in the first half of 2025.
“Pig prices have recently hit a low but are rebounding. We expect a price increase toward year-end, maintaining high pricein the first half of 2025. In October, nổ hũ miễn phí sold 46,000 pigs, generating revenue of VND 337 billion. Year-to-date, we’ve sold 486,000 pigs, doubling last year’s figures with revenue nearing VND 2.7 trillion. Given the limited supply, nổ hũ miễn phí will increase pig sales in the coming months.”