Phu Nhuan Jewelry is a leading Vietnamese jewelry brand traded on the Ho Chi Minh Stock Exchange under the ticker PNJ. The company specializes in gold, silver, and gemstone jewelry. It also operates around 400 retail jewelry stores throughout Vietnam.
In the first half of 2024, PNJ achieved a 34.3 percent increase in net revenue, reaching VND 22.11 billion or US$900.7 million. This growth was accompanied by a 7.4 percent rise in profit after tax year over year. As a result, the stock price rose by 16 percent from the beginning of the year to September 11.
This positive performance was primarily driven by an 80.8 percent and 14 percent surge in 24-karat gold revenue and jewelry retail revenue compared to the previous year, respectively. A total of 41.5 percent of PNJ’s revenue came from 24-karat gold, with retail revenue being 49.5 percent in the first half of the year.
Of note, Vietnam’s gold price exhibited a dramatic upward trend from the start of 2024, culminating in a peak of VND 92.2 million per tael or US$2,981.1 per troy ounce on May 11. This price represented a premium of approximately 20 percent compared to the global gold market at that time.
In response to the escalating gold prices, the Vietnamese government intervened by selling gold through four state-owned banks in June. This intervention led to a sharp decline in domestic gold prices. Consequently, the growth momentum in PNJ’s gold business segment began to decelerate in June.
Disclosure: The author does not have any financial interest in PNJ stock.