PNJ – H1 2024 NPAT increases 7% YoY on robust retail sales growth – Earnings Flash
  • 2024-07-29T00:00:00
  • Company Research

* H1 2024 results: Net revenue was VND22.1tn (USD867mn; +34% YoY) and NPAT was VND1.2tn (USD46mn; +7% YoY), which complete 57% and 52% of our respective full-year forecasts. Revenue tracked ahead of our expectation because of strong wholesales and gold bar sales growth, while NPAT slightly trailed our forecasts due to higher-than-expected SG&A costs. As such, we see slight downside risk to our current projection, pending a fuller review.  

* Q2 2024 results: Net revenue grew 43% YoY, led by a 105% YoY surge in gold bar sales. NPAT grew 27% YoY, which was mainly driven by strong retail sales of 18% YoY. 

* June 2024: Net revenue was VND2.6tn (+18% YoY) and NPAT was VND116bn (+3% YoY). In June, gold bar sales increased 11% YoY while decreasing 59% MoM, which was mainly due to the State Bank of Vietnam's policies to control SJC gold prices starting from June.  

* Profitability: PNJ’s blended GPM contracted by 2.5 ppts YoY to 16.4% in H1 2024, which we primarily attribute to the continuously lower contribution of retail sales to total sales which significantly decreased from 58.1% in H1 2023 to 49.5% in H1 2024. Conversely, SG&A expenses/retail sales increased 1.7 ppts YoY and was slightly higher than our expectation. SG&A expenses increased 25% YoY in H1 2024, which was mainly driven by 36%/30% YoY increases in salary/marketing expenses, respectively. 

* Store expansion: PNJ’s store count increased by five stores (i.e., gold stores) vs YE2023 (but flat vs end-May 2024), standing at 405 as of end-June 2024 and falling short of our current projection of 50 new gold stores in 2024F. 

PNJ’s Q2 2024 & H1 2024 results 

VND bn 

Q2 2024 

YoY 

H1 2024 

YoY 

H1 2024 as % of 2024F 

Net revenue 

9,519 

43% 

22,113 

34% 

57% 

-        Retail 

4,628 

18% 

11,043 

14% 

50% 

-        Wholesales 

877 

42% 

1,829 

22% 

61% 

-        Gold bar 

4,050 

105% 

9,258 

81% 

70% 

-        Others 

77 

-63% 

178 

-50% 

31% 

Gross profit 

1,481 

22% 

3,630 

17% 

51% 

SG&A expenses 

-938 

22% 

-2,141 

25% 

51% 

EBIT 

543 

24% 

1,489 

6% 

52% 

NPAT-MI 

429 

27% 

1,167 

7% 

52% 

Gross margin 

15.6% 

-2.6 ppts 

16.4% 

-2.5 ppts 

 

SG&A/net sales 

9.9% 

-1.7 ppts 

9.7% 

-0.7 ppts 

  

SG&A/retail sales 

20.3% 

0.6 ppts 

19.4% 

1.7 ppts 

  

EBIT margin 

5.7% 

-0.9 ppts 

6.7% 

-1.8 ppts 

 

NPAT-MI margin 

4.5% 

-0.6 ppts 

5.3% 

-1.3 ppts 

 

Source: PNJ, Vietcap (Segment revenue is gross revenue) 

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