BUSINESS UPDATES

Phu Nhuan Jewelry Joint Stock Company (PNJ) is Vietnam’s leading jewelry retailer, operating in jewelry manufacturing and retail, diamond and gemstone grading, and real estate. As of the end of 2Q2026, the Company operated 430 stores nationwide with 8,234 employees.

In 2Q2026, PNJ reported net revenue of VND 8,484 billion (+11.9% YoY), while net profit after tax (NPAT) recorded a loss of VND 283 billion, compared with a profit of VND 437 billion in the same period last year. For 1H2026, net revenue reached VND 25,729 billion (+49.4% YoY), while NPAT increased to VND 1,185 billion (+6.3% YoY). During the first six months of the year, the Company’s gross profit margin and net profit margin declined from 21.4% and 6.5% to 19.4% and 4.6%, respectively.

Recently, PNJ has faced a severe crisis of consumer confidence following the incident involving PNJLab, triggering a wave of customer diamond buyback requests. This has created short-term liquidity pressure and prompted investors to revise down their expectations for the Company.

Although PNJ maintained a relatively solid financial position and healthy cash flow generation prior to the incident, the sudden loss of customer confidence quickly translated into liquidity pressure, making it the Company’s most significant short-term risk.

RECOMMENDATION

Although the PNJLab incident has not materially undermined PNJ’s operating fundamentals or financial health, restoring customer and investor confidence is likely to take time. In the near term, we recommend investors MONITOR developments in customer diamond buyback demand, the pace of sales recovery, the impact on cash flow and working capital, as well as the Company’s efforts to enhance transparency and strengthen corporate governance. These factors will be key determinants of the Company’s business recovery and share price valuation going forward.