Phu Nhuan Jewelry (HOSE: PNJ) | Q1 2025 Update, BUY – 1Y Upside +21.2%

Jewelry Retail Maintains A Decent Growth in Q1 2025

In Q1 2025, PNJ reported a decline in both top- and bottom-line results, while its core jewelry retail segment outpaced the market amid the industry headwinds. Its revenue and NPAT fulfilled 27.0% and 28.3% of our FW2025 forecast respectively.

Despite the overall contraction, the company's revenue mix shifted favorably toward higher-margin retail jewelry sales, which helped gross profit margin improve significantly to 21.3%, up from 17.1% in Q1 2024, reflecting the growing contribution of core retail operations to overall performance.

We believe that PNJ will overcome the challenges posed by the volatile gold market and ongoing gold shortages in jewelry production, thereby strengthening its solid position in the future. We maintain a BUY rating on PNJ with a 12-month target price of VND 99,600/share, representing a potential upside of +21.2% from today closing price.