Shares of Vietnam's leading jewelry maker PNJ jump over 30% ahead of gold inspection report

Shares of Phu Nhuan Jewelry JSC (PNJ), a leading jewelry producer in Vietnam, rallied sharply ahead of the central bank’s Friday release of its gold market inspection findings.

The company said later the same day that it has proactively addressed all issues flagged by the inspectors in 2024.

Addressing gold trading violations

The State Bank of Vietnam (SBV) on Friday announced findings from its inspection of compliance with policies and regulations. PNJ was the only publicly listed company among the gold retailers inspected.

The bank concluded that PNJ had committed multiple violations, including non-compliance with reporting requirements related to bullion trading activities. Inspectors also found signs the company disseminated potentially misleading product information to lure competitors’ customers, an act linked to unfair competition.

Further findings revealed suspected violations of labeling rules for jewelry and gold art products, potential breaches of tax and anti-money laundering laws, and cases of sales invoices issued at improper times.

The central bank’s chief inspector slapped PNJ with an administrative fine of VND1.34 billion ($51,500) for violations of reporting requirements related to bullion trading and anti-money laundering rules.

The bank also referred suspected criminal violations involving invoices, accounting records, and tax compliance at PNJ to the Ministry of Public Security for investigation.

PNJ was among the hottest retail stocks from late 2023 through mid-2024, climbing steadily from around VND70,000 per share to VND106,000 ($4.07).

Many analysts expected the stock to reach up to VND130,000 (about $5), betting on PNJ’s potential to gain further market share and on revisions to Decree 24/2012/ND-CP, which regulates gold trading oversight by the SBV.

However, reality fell short of expectations as PNJ shares hovered around VND95,000 ($3.65) per share for an extended period before plunging to VND63,000 ($2.42) in February and March.

Following a sudden market-wide tariff shock, the stock rebounded strongly to VND85,700 ($3.29) by mid-May before pulling back slightly to VND82,500 ($3.17) in recent sessions, still up more than 30% from its February-March low.

On the Ho Chi Minh Stock Exchange (HoSE), PNJ shares closed Friday at VND82,500 each.

PNJ said in a Friday statement that it had made every effort to fully comply with state regulations on gold and jewelry trading. The company emphasized its commitment to transparency and said it had strived to comply with legal requirements on accounting, invoicing, documentation, and tax obligations.

“PNJ acknowledges the shortcomings in its operations identified during the 2024 inspection,” the company said.

“We have proactively addressed all issues flagged by inspectors to improve operations starting in 2024. At the same time, we requested that relevant authorities investigate and clarify the remaining unresolved matters noted in the report. PNJ remains committed to cooperating professionally and transparently with regulators to bring the matter to a clear resolution.”

Profit falls amid dual headwinds

At the company’s April AGM, PNJ CEO Le Tri Thong pointed to a “double storm” of supply and demand shocks weighing heavily on the firm’s business.

On the supply side, raw gold grew increasingly scarce amid record prices and tighter market controls. On the demand side, a sharp pullback in consumer spending, especially on luxury goods, forced many businesses to scale down or shut entirely.

Given this backdrop, after years of pursuing growth, the company has opted to slow down in 2025, setting more cautious targets with revenue projected at VND31.61 trillion ($1.21 billion) and post-tax profit at VND1.96 trillion ($75.3 million), down 16.4% and 7.2%, respectively, from 2024 levels.

First-quarter results reflected this shift, with revenue falling 23.5% to VND9.64 trillion ($370.46 million) and post-tax profit down 8.1% to VND678 billion ($26.06 million).

In response to the dual challenges, Thong said the company must shift its customer approach and identify segments with growth potential.

PNJ is intensifying its push into the retail jewelry market by fast-tracking the rollout of its Mancode by PNJ brand, aimed at male consumers.

“This is seen as an untapped fertile market. If conditions improve, PNJ plans to open standalone stores dedicated to Mancode by PNJ,” the CEO said.

Mancode is just the first step in PNJ’s lifestyle product lineup. The company plans to partner with startups to gain access to high-end Italian fashion brands, aiming to expand the Mancode range and launch additional products in this new segment.

Despite short-term challenges, PNJ remains optimistic long-term, banking on the rapid growth of the middle-class population and urban development to boost its market reach.

The company plans to continue expanding its store network. In 2024, PNJ opened 41 new stores, bringing its total to 429 across 58 of 63 cities and provinces.

This year, it has budgeted to open an additional 12 to 25 stores to strengthen its presence in key markets. PNJ remains committed to its goal of reaching 500 stores nationwide by 2030.