Gold price soars but jewelry giant PNJ's stock price plummets

Despite the gold price exceeding 100 million VND/tael, shares of Phu Nhuan Jewelry Company (PNJ) have continuously plummeted since the beginning of the year.

On the morning of March 20, PNJ shares of Phu Nhuan Jewelry Joint Stock Company - a leading gold jewelry manufacturer in Vietnam - were trading at over VND89,000/share, up more than VND1,000 compared to yesterday. However, PNJ's share price is still down nearly 6% compared to early March and down nearly 9% compared to the beginning of the year.

The continuous decline of PNJ shares in recent times is completely contrary to the trend of world and domestic gold prices continuously increasing and setting new records. Compared to the peak at the end of August 2024 of over 109,000 VND, PNJ shares have evaporated 20,000 VND, equivalent to a decrease of 18%.

Inside a PNJ gold shop

PHOTO: TNO

Currently, each tael of domestic gold bars is sold for 100.4 million VND. Gold rings in the market are even higher, such as Bao Tin Minh Chau selling for up to 100.9 million VND/tael and buying for 99.25 million VND. In general, since the beginning of the year, each tael of SJC gold bars has increased by 16.2 million VND, equivalent to an increase of 19.2% compared to the beginning of the year. Meanwhile, gold rings have skyrocketed to 16.7 million VND/tael, equivalent to an increase of nearly 20%, although the first 3 months of this year have not yet ended.

Gold prices have skyrocketed in the past year, but with the State Bank controlling the purchase and sale of gold bars for nearly a year, PNJ is not on the list of units that the State Bank directly sells gold bars to the market. However, in 2024, PNJ achieved net revenue of more than VND 37,823 billion, up 14.1% compared to 2023 and after-tax profit of VND 2,115 billion, up 7.3%. Of which, retail jewelry revenue increased by 14.4%; wholesale jewelry revenue increased by 34.6% and 24K gold revenue increased by 11.5% mainly due to the strong increase thanks to the excitement of the market in the first half of the year...

PNJ has just paid the first cash dividend of 2024 to shareholders at a rate of 6%/share (1 share will receive 600 VND). With more than 337.9 million PNJ shares in circulation on the market, it is estimated that PNJ has spent more than 202.7 billion VND on this dividend payment to shareholders. At the same time, the company also set the final registration date to hold the 2025 Annual General Meeting of Shareholders scheduled to take place in April.