Company Overview

Phu Nhuan Jewelry Joint Stock Company was formerly a state-owned enterprise under the Phu Nhuan People's Committee. The company was established in 1988, privatized in 2004, and listed on the HoSE since 2009. PNJ primarily operates in the manufacturing and retailing of gold, silver, and gemstone jewelry via its own store.

Financial Performance

PNJ delivered impressive financial results from 2019 to 2023, achieving a revenue CAGR of 14.5% and a net profit CAGR of 10.5%. During the same period, the average gross profit margin stood at 18.8%, with an upward trend driven by an increasing share of retail jewelry sales and a decrease in contribution from 24K gold sales, which have a lower gross margin.

Key Investment Rationales

PNJ continues to prove its leading position and its potential double-digit growth over the next 3 years:

• Operates the largest retail jewelry chain across Vietnam with 418 stores across 57 (out of 63) provinces.
• Thanks to its strong positioning, PNJ could expand its retail product portfolio to other related products that well fit its client base.
• PNJ possesses a superior production capacity which could well nuture future demand.
• PNJ's business is less affected by the economic cycle.
• Financial health is robust thanks to a capable management team.
  

Based on DCF, P/E, and EV/EBITDA projections, SBBS recommends a BUY with a target price of VND 115,800/share, representing an upside potential of 19.9% compared to the price of 96,600 VND as of January 3, 2025.