- We raise our target price (TP) for PNJ by 23% and reiterate our BUY rating. We believe PNJ is well-positioned to spearhead the industry’s growth along with the recovery of Vietnamese middle-income and affluent class consumption.

- Our higher TP is because we increase forecasted aggregate 2024-28F NPAT by 15%. This increase is mainly driven by raising our 2025-28F retail GPM assumptions by 20-30 bps each year. We also trim the aggregate 2024-28F SG&A expenses by 1%, following better-than-expected cost control amid PNJ’s strong expansion during weak consumption in 2023.

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