- We raise our target price (TP) for PNJ by 4% and reiterate our BUY rating. We believe PNJ is well-positioned to spearhead the branded jewelry industry’s growth along with the recovery of Vietnamese middle-income and affluent class consumption.

- Our higher TP is driven by our 2% higher forecasted aggregate 2024-28F NPAT-MI following our higher projection for gold bar sales. In addition, we roll our TP horizon forward to mid-2025. 

- In the medium to long run, we anticipate that Vietnam’s growing middle-income class will increasingly favor buying jewelry from reputable brands as opposed to purchasing it from unbranded mom-and-pop stores, which still accounted for ~67% of Vietnam’s jewelry market in 2022, according to Euromonitor.

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