- We attended PNJ’s analyst meeting on July 21, during which management shared upbeat preliminary H1 2022 results and discussed its business plans.

- Our key takeaways from the meeting reinforce our conviction in PNJ’s robust earnings growth outlook for H2 2022 that is backed by its resilient mass-affluent customer base, dominant market position and rebound from pandemic-related restrictions in 2021. As such, we see potential upside risk to our full-year forecasts for 2022, pending a more extensive review. In addition, we expect PNJ’s revenue growth to normalize in 2023. 

- Management commented that growth in both new and existing customers hit their highest rates in the past four years while same-store-sales growth also hit a record high. Management has not seen any major impact from inflationary pressure on PNJ’s business in June-July 2022. However, management expects to see some impact around end-Q3 2022 to early-Q4 2022 as the inflationary impact of higher commodity prices feeds through to Vietnam with a time lag of four to six months. Nevertheless, management believes H2 2022 will have a YoY growth rate of at least 30% in terms of net profit. 

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