Vietnam’s only listed jewelry maker PNJ expects 7.3% dip in 2025 net profit

Phu Nhuan Jewelry JSC (HoSE: PNJ), the only listed jewelry company in Vietnam, targets nearly VND1.96 trillion ($75.34 million) in net profit this year, down 7.3% year-on-year.

The firm also expects a 17.3% plunge in consolidated revenue to VND31.6 trillion ($1.22 billion) this year, according to its 2025 business plan expected to be presented at the AGM on April 26.

The board and key leaders of PNJ are set to receive a bonus of VND35 billion ($1.35 million) if the firm reaches or exceeds the net profit target goal.

Should net profit increase 7.8% year-on-year to VND2.11 trillion ($81.22 million), the bonus will increase to VND50 billion ($1.92 billion).

According to an analysis by Saigon-Hanoi Securities Joint Stock Company (SHS Research), PNJ’s net revenue has grown steadily from 2009 to 2024. The compound annual growth rate (CAGR) over the past five years exceeded 21%, while the 10-year CAGR stood at 15.2%.

The faster growth in revenue compared to profit indicates pressure on profit margins. The gross profit margin has remained relatively flat at around 18%, due to factors such as rising raw gold prices, limited supply, and intense competition, SHS Research noted.

In February, PNJ revealed plans to expand into non-jewelry products. The company has already signed contracts with relevant parties and intends to disclose further details in the second quarter of the year.

PNJ currently has more than 1,000 goldsmiths and two factories with an annual capacity of approximately four million products.

PNJ shares closed down 6.9% to VND67,500 ($2.6) each on Tuesday.