We attended PNJ’s Analyst Meeting on July 21, during which management provided updates about Q2 2023 results and its expectations for the rest of the year. Below are our detailed takeaways.

- Preliminary H1 2023 results: Net revenue was VND16.5tn (USD700mn; -9.6% YoY) and NPAT was VND1.1tn (USD46mn; -0.5% YoY), which completed 52% and 61% of our respective full-year forecasts. While revenue and gross profit is in line with our expectation, NPAT is ahead of our expectation due to lower-than-expected SG&A/sales in Q2 2023. We currently see potential upside risk to our 2023F forecast, pending a fuller review. Additionally, management said the value of Vietnam’s jewelry market has declined ~40% YTD, which implies that PNJ has gained market share over the past two quarters.

- Preliminary Q2 2023 results: Net revenue declined 17.4% YoY and NPAT dropped 8.8% YoY. Retail sales (58% of total sales in Q2 2023) declined 21.3% YoY. According to management, retail sales decreased across segments (from low-end to high-end); however, management recently witnessed a slight improvement in the mid-to-high-end segment. Additionally, wholesales revenue (9% of total sales in Q2 2023) slumped 41.5% YoY.

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