PNJ – Update – 20180810

• PNJ announced strong 2Q2018 business results in line with our expectations. Our positive view on PNJ is strengthened by the company’s growing store coverage, robust Same-Store Sales Growth (SSSG) and successful expansion into fashion accessories such as watches. We upgrade PNJ to an ADD rating based on a new target price of VND120,700/share.
• FY2018 revenue is estimated to reach VND14,271bn (+30.0% yoy) and net profit to soar 39.3% yoy to VND1,010bn.
• We reiterate our ADD rating and target price of VND120,700/share which translates into a FY18 P/E of 19.4x.

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