PNJ - Net profit remains flat YoY, operating expenses increase QoQ

- 9M 2023 results: Net revenue was VND23.4tn (USD974mn; -9% YoY) and NPAT was VND1.3tn (USD56mn; flat YoY), which fulfilled 76% and 73% of our respective full-year forecasts. Although revenue exceeded our expectations, NPAT fell short due to higher-than-expected SG&A/sales in Q3 2023. We currently see minor potential downside risk to our 2023F forecast, pending a fuller review.

- Q3 2023: Net revenue was VND6.9tn (USD288mn; -6% YoY) and NPAT was VND253bn (USD11mn; flat YoY). Revenue inched up 4% QoQ, which was higher than our expectation for weak demand in Q3. Retail sales (60% of total sales in Q3 2023) declined 11% YoY. Additionally, wholesales revenue (9% of total sales in Q3 2023) slumped 36% YoY.

- In September, PNJ’s net revenue was VND2.3tn (USD94mn; -11% YoY; -2% MoM), and its NPAT was VND93bn (USD4mn; -2% YoY). Retail revenue increased by 6% MoM in September, which we mainly attribute to gifting demand for Vietnamese Women’s Day in October.