Positive signals

On June 19, Mr. Doan Nguyen Duc, Chairman of the Board of Directors of Hoang Anh Gia Lai Joint Stock Company (HOSE: HAG), completed the purchase of 10 million HAG shares through negotiation, increasing his ownership ratio from 30.26% to 31.2%, equivalent to nearly 330 million shares. It is estimated that Mr. Duc spent more than VND135 billion on this deal.

“Not only Mr. Duc, many other members of the Board of Directors also registered to buy more HAGL shares.

Ms. Vo Thi My Hanh and Ms. Ho Thi Kim Chi, two deputy general directors and members of the Board of Directors, registered to buy a total of 2 million HAG shares from June 23 to July 22. After the transaction, Ms. Hanh plans to increase her ownership from 0.3 million to 1.3 million shares (0.12% of capital), while Ms. Kim Chi will increase her ownership from 0.6 million to 1.5 million shares (0.15% of capital).

Regarding business results, HAGL recorded impressive figures in the first quarter of 2025. Revenue reached nearly VND 1,380 billion, up 11.2% over the same period, while profit after tax reached more than VND 360 billion, up 59%. The company aims to achieve revenue of VND 5,500 billion and profit after tax of more than VND 1,100 billion in 2025, a slight increase compared to 2024.

At the 2025 Annual General Meeting of Shareholders, HAGL announced its revenue structure with 76% from fruits (mainly durian), 19% from pig farming and 5% from other products. These figures show that the "2 trees, 1 animal" model (durian, banana and pig) continues to be the main growth driver.

Financially, HAGL has significantly reduced its debt burden. From a debt balance of VND32,000 billion and an accumulated loss of nearly VND7,000 billion during the difficult period, the company's total debt balance has now decreased to about VND7,000 billion.

At the end of 2024, HAGL will pay more than VND 1,000 billion in bond principal to BIDV , reducing bond debt to about VND 766 billion, with a plan to clear all bond debt by the second quarter of 2025.

Bau Duc Cuong dollar 5.jpg
Mr. Doan Nguyen Duc. Photo: HAG

In addition, HAGL plans to issue 210 million shares to convert Group B bond debt, with a maximum value of VND2,520 billion, at an issuance price of VND12,000/share. Although the issuance may cause dilution, Mr. Duc pledged to buy treasury shares to reduce the impact on existing shareholders.

HAGL is also investing heavily in new areas. The company plans to grow 2,000 hectares of mulberry to raise silkworms for export and 2,000 hectares of Arabica coffee. The project to raise 700,000 sturgeon in Laos is in the testing phase, with the first harvest expected in September-October 2025.

These plans show that HAGL is not only focusing on improving finances but also looking for new growth drivers.

HAGL's decade of overcoming difficulties

The past decade has been a challenging time for Hoang Anh Gia Lai. From a famous mountain town enterprise, HAGL fell into a serious financial crisis due to over-expansion into many fields such as real estate, hydropower and agriculture .

At its peak, the company suffered an accumulated loss of nearly VND7,000 billion and outstanding debt of up to VND32,000 billion. During this period, HAGL faced great liquidity pressure, especially bond debt and bank loans.

To escape the crisis, Mr. Doan Nguyen Duc has implemented a series of restructuring measures. In 2018, HAGL reached an agreement with Thaco of billionaire Tran Ba ​​Duong to transfer HAGL Agrico (HNG) to collect a large amount of money to pay off debt. Thaco committed to arranging debt restructuring for HNG, helping HAGL reduce financial pressure. At the end of 2024, HNG transferred more than VND 1,000 billion to HAGL to pay off BIDV bond debt, contributing to reducing total bond debt to VND 766 billion.

In addition, HAGL also received support from LPBank, Thaiholdings, and interest rate reduction from Eximbank, thereby significantly improving its financial situation.

In addition to debt restructuring, HAGL focuses on core business areas. The "2 trees, 1 pig" model takes advantage of high durian prices and strong demand for pork, helping the company achieve good profits in 2024. Liquidating unprofitable assets, such as Hoang Anh Gia Lai Hotel and University of Medicine and Pharmacy Hospital - HAGL, also provides capital for restructuring.

These efforts help HAGL reduce accumulated losses and improve cash flow.

However, HAGL still faces many challenges. As of the end of the first quarter of 2025, total debt was still about VND7,000 billion, of which short-term loans accounted for nearly VND6,069 billion. Agricultural business has potential risks from price fluctuations, high interest costs and disease risks.

However, Mr. Duc is confident in his long-term goal, expecting HAGL to achieve a profit of VND5,000 billion by 2028. He also emphasized that eliminating accumulated losses will open up opportunities to attract large investment funds.

The determination of Mr. Duc and the board of directors, along with positive business results, can bring confidence to shareholders after a long period of business difficulties. The fact that Mr. Duc and the members of the Board of Directors continuously buy HAG shares is the latest positive signal about the company's prospects.

Although the road ahead is still full of challenges, HAGL can gradually regain its position, from a debt-ridden enterprise to a remarkable recovery story.

Where did Bau Duc's HAG get the trillions of dong to pay off most of its bond debt? In just a few days, Mr. Doan Nguyen Duc's (Bau Duc) company had trillions of dong to pay off its debt. So where did the large cash flow come from and how is the health of Hoang Anh Gia Lai (HAG) of the mountain tycoon?

Source: https://vietnamnet.vn/bau-duc-tung-tram-ty-mua-co-phieu-hagl-suc-khoe-ra-sao-2413372.html