- 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 |
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SG&A/retail sales | 20.3% | 0.6 ppts | 19.4% | 1.7 ppts |
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EBIT margin | 5.7% | -0.9 ppts | 6.7% | -1.8 ppts |
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NPAT-MI margin | 4.5% | -0.6 ppts | 5.3% | -1.3 ppts |
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Source: PNJ, Vietcap (Segment revenue is gross revenue)
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