* 2024 guidance: Revenue of VND37.1tn (USD1.5bn; +12% YoY) and NPAT of VND2.1tn (USD84mn; +6% YoY). Management attributes the discrepancy in the top-line and bottom-line growth targets to its expected high growth of the low-margin business - gold bar sales, which stems from high consumer demand for investment purposes amid the recent rally in the gold price. 

* Other 2024 guidance: In 2024, management aims to (1) develop a new category in the lifestyle industry, (2) expand its customer base in lower-tier regions, and (3) maximize operational efficiency per sqm of its stores.

* Shareholders approved PNJ’s FY2024 ESOP scheme and cash bonus plan:

- FY2024 ESOP: To issue shares at VND20,000/share with a 3-year lock-up period and after each year, 30% of the shares are freely transferable.

+ Scenario 1: If PNJ's TSR (including stock return and dividend yield) in 2024 minus the VN-Index return in 2024 equals or exceeds 5%, then the maximum issuance rate is 2%. The issuance rate corresponding to 2024 actual NPAT is shown in the table below.

+ Scenario 2:  If PNJ's TSR in 2024 minus the VN-Index return in 2024 is less than 5%, then the maximum issuance rate is 1.6% and the issuance rate corresponding to 2024 actual NPAT equals to 80% of that in scenario 1.

Figure 1: Summary of PNJ’s approved FY2024 ESOP scheme and cash bonus plan

Source: PNJ, Vietcap. Note: (*) If 2024 actual NPAT equals 101% of 2024 guided NPAT, issuance rate will be 0.9% + 1%*100*0.049% = 0.95%.

* 56.84% of total voting shareholders approved the proposal of issuing ESOP shares for PNJ’s three key leaders in 2024. PNJ is reviewing its charter and regulations and has not yet announced the official result of this proposal. Specifically, PNJ proposed to issue 1.8 million shares (equivalent to 0.54% of outstanding shares) at VND20,000/share for three PNJ’s key leaders, i.e., Ms. Cao Thi Ngoc Dung – Chairwoman of the BOD, Mr. Le Tri Thong – Vice Chairperson of the BOD cum CEO, and Ms. Dang Thi Lai – BOD member cum CFO. Management believes that the contributions of these key leaders are crucial to PNJ’s business performance in 2018 – 2023. 

* Other information on PNJ’s operation:

- Gold materials: According to PNJ, as raw gold materials account for approximately 50% of PNJ’s total COGS, gold price volatility has an impact on its COGS. In order to mitigate the negative impact of gold price volatility, PNJ adjusts its selling prices when the firm’s raw gold materials increase more than 5%. Additionally, the scarcity in high-quality gold materials, coupled with the recent closedown of some domestic gold stores (who are PNJ’s suppliers), partly affect PNJ’s gold material resources.

- Improved business performance in the north: Management estimated that the revenue contribution of the northern market increased by around 1.5x from 8%-9% to 12%-13.5% as local young customers get familiar with, and have increasingly appreciated, PNJ’s brand image.

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