- 2024-10-22T00:00:00
- Company Research
* 9M 2024 results: Net revenue was VND29.2tn (USD1.2bn; +25% YoY) and NPAT was VND1.4tn (USD55mn; +3% YoY), which complete 77% and 65% of our respective full-year forecasts. Revenue slightly tracked ahead of our expectation due to stronger-than-expected revenue growth across businesses, including retail sales (+16% YoY), wholesales (+30% YoY), and gold bar sales (+44% YoY). Nevertheless, NPAT slightly trailed our forecasts due to higher-than-expected SG&A costs as PNJ accelerated marketing activities and store openings towards YE2024 and increased its workforce to support its new business line. As a result, we see slight downside risk to our current projection, pending a fuller review.
* Q3 2024 results: Net revenue grew 3% YoY, led by 20% YoY growth in retail sales which was offset by a 46% YoY decline in gold bar sales. NPAT declined 15% YoY, which we attribute to 9% YoY higher SG&A expenses.
* September 2024: Net revenue was VND2.4tn (+6% YoY) and NPAT was VND101bn (+9% YoY). Gold bar sales dropped 52% YoY which we mainly credit to State-owned commercial banks’ direct gold bar sales initiative that began on June 3; however, revenue increased 13% MoM.
* Profitability: PNJ’s blended GPM declined by 1.7 ppts YoY to 16.7% in 9M 2024, which we attribute to (1) the slightly lower contribution of retail sales to total sales YoY and (2) challenges in gold materials sourcing. In 9M 2024, PNJ's net margin shrank by 1.0 ppts YoY to 4.7%, which we believe was further impacted by 20% YoY higher SG&A expenses in 9M 2024. According to PNJ, the company increased SG&A expenses to promote new collections, h as supporting its men’s lifestyle products line at end-Q3-Q4 2024, as well as accelerate store expansion towards YE2024.
* Store expansion: PNJ’s store count increased by 18 stores (i.e., gold stores) vs YE2023 and 4 stores vs end-August 2024, with a total of 418 stores as of end-September 2024.
PNJ’s Q3 2024 & 9M 2024 results
VND bn | Q3 2024 | YoY | 9M 2024 | YoY | 9M 2024 as % of 2024F |
Net revenue | 7,130 | 3% | 29,242 | 25% | 77% |
- Retail | 5,055 | 20% | 16,098 | 16% | 75% |
- Wholesales | 977 | 54% | 2,806 | 30% | 89% |
- Gold bar | 1,110 | -46% | 10,368 | 44% | 81% |
- Others | 87 | 0% | 266 | -41% | 47% |
Gross profit | 1,251 | 4% | 4,881 | 13% | 72% |
SG&A expenses | -948 | 9% | -3,089 | 20% | 75% |
EBIT | 303 | -7% | 1,792 | 4% | 67% |
NPAT-MI | 216 | -15% | 1,382 | 3% | 65% |
Gross margin | 17.5% | 0.2 ppts | 16.7% | -1.7 ppts |
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SG&A/net sales | 13.3% | 0.7 ppts | 10.6% | -0.5 ppts |
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SG&A/retail sales | 18.7% | -2.0 ppts | 19.2% | 0.5 ppts |
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EBIT margin | 4.2% | -0.5 ppts | 6.1% | -1.3 ppts |
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NPAT-MI margin | 3.0% | -0.6 ppts | 4.7% | -1.0 ppts |
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Source: PNJ, Vietcap (Segment revenue is gross revenue)
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