Company Insight

Initiate coverage with BUY rating and target price at VND 83,100

Phu Nhuan Jewelry JSC (HOSE: PNJ) is the only listed company in Vietnam operating in the jewelry sector with a nationwide retail network. Based on the FCFF and P/E methods, we are publishing our first report on PNJ and issuing a BUY recommendation with a target price of VND 83,100 (equivalent to an expected return of 27%).

Q1 business results showed strong year-on-year growth thanks to improvements in the 24K segment

PNJ recorded net revenue of VND 17,245 billion in Q1/2026 (+79.0% YoY, +79.2% QoQ) and net profit of VND 1,467 billion (+116.5% YoY, +20.5% QoQ). This result was achieved thanks to a strong recovery in the 24K segment (+325% YoY), while other segments maintained stable growth. Despite the increased proportion of the 24K gold segment in revenue structure, PNJ still maintained a gross profit margin of 20%.

PNJ is focusing on improving store efficiency rather than opening new stores. In 2025, the company closed 15 underperforming stores and opened 17 new stores in more suitable locations. At the end of Q1/2026, PNJ owned 429 retail stores and 1 wholesale center, corresponding to the opening of 2 new stores and the closure of 3 stores during the quarter.

We project PNJ to record net revenue of VND 46,794 billion (+33.8% YoY), with retail jewelry, 24K gold, and wholesale achieving growth rates of 18.3%, 105.2%, and 10% respectively. We believe PNJ will temporarily refrain from aggressively opening new stores and will continue to prioritize improving operational efficiency. Net profit after tax is expected to reach VND 3,508 billion, corresponding to a 24% YoY growth thanks to effective cost control and a manufacturing advantage that helps maintain stable profit margins despite fluctuations in raw gold prices.