- 2024-04-22T00:00:00
- Company Research
* Q1 2024 results: Net revenue was VND12.6tn (USD504mn; +29% YoY) and NPAT was VND738bn (USD30mn; -1% YoY), which complete 35% and 33% of our respective full-year forecasts. Revenue tracked ahead of our expectation due to higher-than-expected gold bar sales. However, the gold bar sales’ thin GPM and higher-than-expected operating expenses resulted in Q1 NPAT falling behind our forecast.
* Q1 segmental performance: Retail sales (51% of Q1 total sales) increased 12% YoY due to the contribution of new collections and effective marketing campaigns. Wholesales (8% of Q1 total sales) rose 8% YoY. Gold bar revenue (41% of total sales in Q1) surged 66% YoY, which we mainly attribute to the rally of the domestic gold price YoY in Q1 2024.
* March 2024: Net revenue jumped 46% YoY and NPAT declined 3% YoY, which was mainly driven by a 118%-YoY surge in gold bar sales, which accounted for 42% of total sales in March.
* Profitability: PNJ’s gross margin decreased 233 bps YoY to 17.1% in Q1 2024 primarily due to the higher sales contribution from gold bar YoY in Q1. Nonetheless, Q1 2024 GPM of retail sales increased 26 bps YoY, per our estimates. We expect to see PNJ’s combined GPM improve moving forward from (1) the normalized contribution of gold bar sales and (2) an improvement in retail sales. Conversely, operating expenses increased 29% YoY, tracking ahead of our expectations, and were mainly driven by 35% YoY higher salary expenses.
* Store expansion: In Q1 2024, PNJ’s store count increased by one store (i.e., gold store) vs YE2023, standing at 401 total stores as of end-March 2024.
* Our view: Overall, we believe PNJ delivered strong retail sales in Q1 2024, while a higher-than-expected contribution from gold bar sales potentially lowered the blended gross margins of PNJ. We see slight downside risk in our 2024F forecasts, pending a fuller review.
PNJ’s Q1 2024 results
VND bn | Q1 2023 | Q1 2024 | YoY | 2024F | Q1 2024 as % of 2024F |
Net revenue | 9,796 | 12,594 | 29% | 36,353 | 35% |
- Retail | 5,723 | 6,415 | 12% | 21,977 | 29% |
- Wholesales | 886 | 953 | 8% | 3,022 | 32% |
- Gold bar | 3,132 | 5,208 | 66% | 11,071 | 47% |
- Others | 149 | 102 | -32% | 569 | 18% |
Gross profit | 1,900 | 2,149 | 13% | 7,009 | 31% |
SG&A expenses | -935 | -1,203 | 29% | -4,198 | 29% |
EBIT | 965 | 946 | -2% | 2,811 | 34% |
NPAT | 749 | 738 | -1% | 2,209 | 33% |
Gross margin | 19.4% | 17.1% |
| 19.3% |
|
SG&A/net sales | 9.5% | 9.6% | 11.5% |
| |
SG&A/retail sales | 16.3% | 18.8% | 19.1% |
| |
EBIT margin | 9.9% | 7.5% | 7.7% |
| |
NPAT-MI margin | 7.6% | 5.9% | 6.1% |
|
Source: PNJ, Vietcap (*segment revenue is gross revenue)
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