Mr. Duc talks about "something he never dared to dream of" when for 5 years everything he said was wrong.

(Dan Tri) - After 10 years of working hard to pay off debts and erase accumulated losses, Mr. Duc said he is now confident enough to earn thousands of billions of dong in profit each year. From 2026, the company will return to paying dividends of 5% in cash.

At the investor meeting held on the afternoon of November 25, Mr. Doan Nguyen Duc (Bau Duc) - Chairman of the Board of Directors of Hoang Anh Gia Lai Joint Stock Company (HAGL, stock code: HAG) - shared about the IPO plan of the subsidiary. At the same time, he also committed to paying regular dividends to shareholders.

IPO of subsidiary, Mr. Duc commits to spend 50% of profit as annual dividends

Specifically, the company plans to IPO HAGL International Investment Joint Stock Company (formerly Hung Thang Loi Gia Lai) in the second quarter of 2026. According to HAGL representative, this company was initially established for commercial purposes, but is playing the biggest role in HAGL's profits.

According to preliminary information, HAGL International Investment has a charter capital of 1,685 billion VND, equity of 3,700 billion VND. The company's total assets are more than 11,000 billion VND, of which HAGL International Investment is in credit debt of 3,400 billion VND.

It is expected that after the IPO, HAGL International Investment's profits will grow 30%/year. Notably, Mr. Duc committed to paying dividends in cash and taking from 50% of the profits earned within 3 consecutive years.

Mr. Duc and leaders of the OCBS strategic investor group shared with investors and shareholders of HAGL (Photo: BTC).

HAGL expects to make a profit of 2,800 billion VND, revealing that it will resume dividend payments from 2026

The leaders also announced this year's estimated results with revenue of 7,700 billion VND and after-tax profit of more than 2,800 billion VND, exceeding the plan assigned by shareholders.

From accumulated losses of thousands of billions of dong, Mr. Duc is now confident that he can earn 2,000 billion dong in profit each year.

"Five years ago, I never dared to dream that HAGL would have a profit of 5,000 billion VND. But now, it only takes 1-2 years to reach this number. Five years ago, I said something wrong, mainly because the debt was too big to do anything," he said. He gave the example of raising cows, which was declared to be super profitable but ultimately failed, because every time there was profit, the debt had to be paid.

In the near future, according to Mr. Duc, coffee will be the biggest source of revenue, followed by durian, mulberry and then banana. He affirmed to investors that the IPO in 2026 is the "perfect time" when the company has real profits, real assets and is in line with the national agricultural development trend.

Notably, after many years, the company has been able to pay dividends to shareholders. It is expected that HAGL will pay dividends again in 2026 in cash at a rate of 5% (shareholders owning 1 share will receive 500 VND).

"I'm dividing it slowly so that shareholders won't be shocked," Mr. Duc explained about the 5% figure.

Q&A with shareholders

Shareholders asked questions about risk management, market practices... (Photo: BTC).

At the event, an investor questioned the expected valuation when the projected profit in 2027 is up to VND2,700 billion.

Responding, Mr. Duc said that it was based on the fact that the company owns a large clean land fund, has completed infrastructure and crops. "I am not a fortune teller to predict stock prices, but I believe in the real value of assets and cash flow," he said.

Investors also expressed concerns about the risks of natural disasters and climate change. Regarding this concern, Mr. Duc said that HAGL's farm locations are in the Western Truong Son (Gia Lai, Laos, Cambodia). This geographical feature helps the company avoid most of the storms from the East Sea that often hit the central coast.

Regarding drought, HAGL has invested in an Israeli drip irrigation system to ensure water supply for crops.

Regarding market strategy, HAGL's viewpoint is "know yourself and your enemy". The company representative said that HAGL's strength is large-scale agriculture. Therefore, the wise strategy is to sell wholesale to large distributors in China, Japan, and Korea.

Mr. Duc also frankly criticized the view that deep processing is needed to be effective: "Many people say that fruit must be deeply processed to increase its effectiveness, that is fundamentally wrong. Processed fruit is considered a waste product. Fresh fruit is always sold at an extremely high price. Why not make something of high value instead of making something of low value?"

He emphasized that HAGL will not participate in retail distribution or deep processing chains but will focus on growing and exporting fresh agricultural products to optimize profit margins.

Source: https://dantri.com.vn/kinh-doanh/bau-duc-ke-ve-dieu-chua-tung-dam-mo-khi-ma-5-nam-roi-noi-gi-cung-sai-20251126074853320.htm