Report

PNJ – 8M-2022 business results – Resilient demand to drive retail sales

  • In Aug 2022, the company posted net revenue of VND 2,328 Bn (or USD 99 Mn, +14 times YoY) and NPAT of VND 79 Bn (or USD 3.4 Mn) compared to a loss of VND 79 Bn in Aug 2021. Accumulated 8M 2022, net revenue and NPAT at VND 23,049 Bn (or USD 1 Bn) and VND 1,246 Bn (or USD 53 Mn), soaring by 88% YoY and 99% YoY.
  • For 2022, we forecast net revenue and NPAT to reach VND 32.0 trillion (or USD 1.3 Bn, +64% y/y) and VND 1.7 trillion (or USD 71 Mn, +67% y/y) respectively, 10.8% higher and 2.0% lower than our previous forecast, respectively, backed by (1) stronger-than-expected spending of MAC consumers on luxury goods and (2) the low base of PNJ’s retail sales in 2H2021 disrupted by COVID-19 lockdown from June to October 2021.
  • Our new target price comes at VND136 000 per share, which is 5.5% lower than the previous valuation, implying an expected return of 32% on the closing price as of Oct 11th, 2022. We recommend BUYING this stock. At the current price, PNJ is trading at a 2022 P/E of 14.8x with a corresponding EPS of VND7 061/share.
Underlying
Phu Nhuan Jewelry JSC

Phu Nhuan Jewelry Joint Stock Company is a Vietnam-based company engaged in the jewelry sector. It manufactures and markets jewelry pieces, stamped gold bars, and jewelry products made of gold and silver. It also trades gemstones and precious metals as materials for jewelry manufacturing. The Company operates jewelry stores under various brand names, such as PNJ Gold, PNJ Silver, CAO Fine Jewelry, and is involved in wholesale trade of stamped gold bars branded Phuong Hoang PNJ - DongA Bank. In addition, the Company provides jewelry evaluation and testing services. It is engaged in the trading of liquefied petroleum gas (LPG), real estate operations and seafood processing through its subsidiaries and affiliates.

Provider
Viet Dragon Securities
Viet Dragon Securities

Viet Dragon Securities belongs to top 20 biggest securities companies in terms of chartered capital in Vietnam. With a qualified, dedicated and professional team, a widespread network, advanced technology, diversified products and services, and good relationship with local and foreign institutions, we provide a wide range of services and products to our clients both individuals and institutions, both local and foreign. We commit to provide our clients with promising investment opportunities and a comprehensive and professional financial investment services.

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Analysts
Loan Nguyen

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