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PNJ – 4Q21 results: recover as expected – Earnings Update

Company Note 24/01/2022    78

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  • 4Q21 revenue and net profit (NP) grew positively 21.5% yoy/7.0% yoy to VND7,099bn and VND457bn, respectively.
  • For FY21, PNJ posted revenue of VND19,613bn (+12.0% yoy) and NP of VND1,033bn (-3.4% yoy), fulfilling 102.7% of our FY21F NP forecast.
  • We expect PNJ to maintain double-digits earnings growth in 1Q22, boosted by the new jewelry collection “Spring messenger” in Lunar New Year.

Market Price

Target Price

Dividend Yield

Rating

Sector

VND95,500

N/A

0.86%

N/A

     Consumer goods

4Q21 recap: strong revenue growth after 4th wave of Covid-19

  • On Dec 21, PNJ’s revenue grew 28.6% yoy to VND2,838bn (+31.3% mom) and net profit rose 48.5% yoy to VND193bn (+37.8% mom) on wedding jewelry demand surge in Dec 21.
  • For 4Q21, PNJ’s revenue grew 21.5% yoy to VND7,099bn, 8.0x times qoq, following the re-opening of stores in Hanoi and HCMC. Retail sale and gold bar sale grew 14.9% yoy and 77% yoy, accounting for 61.5% and 23.8% of 4Q21 revenue, respectively. Meanwhile, the wholesale softened 3.1% yoy as household gold stores have not fully back to business in 4Q21.
  • 4Q21 gross margin decreased by 2.4 pts % yoy to 17.7% due to change in products mix with larger contribution from gold bar revenue (23.8% in 4Q21 vs 16.3% in 4Q20).
  • SG&A increased 4.5% yoy to VND640.1bn as higher marketing expenses. Consequently, 4Q21 net profit grew positively 7.0% yoy, recovering from a net loss of VND160bn in 3Q21 to VND457.2bn.
  • For FY21, PNJ posted revenue of VND19,613bn (+12.0% yoy) and NP of VND1,033bn (-3.4% yoy), fulfilling 107.5%/102.7% of our FY21F forecast. FY21 earnings growth was lower than that of FY20 as 3.4%.

Stable retail network in 2021

By the end of 2021, the total number of PNJ stores reached 341 (+2 stores yoy) including 319 gold stores (+20 stores yoy), 14 silver stores (-19 stores yoy), 89 shop-in-shop watch stores (+23 stores yoy), 20 Style by PNJ stores (including 2 standalone stores and 18 shop-in-shops stores), 12 Pandora shop-in-shops stores, 3 CAO Fine stores (premium products) and 3 PNJ Art stores (showroom of corporate gifts).

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