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PNJ’s analyst meeting, releasing first half results 2015

(PNJ) – Last week, PNJ has organized an analyst meeting with participation of PNJ’s CEO- Ms. Cao Thi Ngoc Dung and Deputy Director-Ms. Nguyen Thi Cuc. The meeting mainly focus on 1st half 2015 results and answer inquiries of investors about PNJ’s upcoming operation.

Gold jewelry (wholesale, retail, export) has contributed 75% revenue and 80% gross profit for PNJ

Net profit maintained impressive growth rate  

PNJ reported 1H-2015 with robust growth: revenue was VND 3.846bil, up 6%; gross profit was VND 546bil, up 43%; net profit before tax was VND 228bil, up 46% over the same period last year, completed 60% annual target. In which, gold jewelry (wholesales, retail, export) contributed 75% revenue and 80% gross profit.

All investors’ questions have been answered properly by Ms. Cao Thi Ngoc Dung & Ms. Nguyen Thi Cuc which helped to secure investors.

During meeting, investors have questioned on financial investments of PNJ, especially the relationship between PNJ & DongA Bank. “Loans from Dong A Bank has a minor portion of PNJ’s debt, the company hasn’t relied on Dong A Bank funding, therefore capital from Dong A Bank has no significant affection to PNJ’s operation” – Ms. Cao Thi Ngoc Dung said.

For question: “Has PNJ thought of worst case that is fully lose DAB investment?”. Ms. Dung said: “As an entrepreneur as well as a financial investor, we has prepared for any worst case to have a suitable provision for all investments, including DAB”. Besides, Ms. Dung emphasized that since 2012, PNJ has started to divest all financial investment to focus on core business, gold jewelry, which mainly contributed to final profit. 

“As an entrepreneur as well as a financial investor, we has prepared for any worst case to have a suitable provision for all investments, including DAB”- said by Ms. Dung

For question: “Has PNJ thought of worst case that is fully lose DAB investment?”. Ms. Dung said: “As an entrepreneur as well as a financial investor, we has prepared for any worst case to have a suitable provision for all investments, including DAB”. Besides, Ms. Dung emphasized that since 2012, PNJ has started to divest all financial investment to focus on core business, gold jewelry, which mainly contributed to final profit.

There’s also a question that was interested by most of investors: “Has PNJ planned to open room for foreign investors?”, Ms. Dung responded: “PNJ’s BOD hasn’t discussed on this issue” 

Continue investing in core business

Ms. Dung shared: “After all other investments, invested in gold jewelry is the most profitable”, in 2015 PNJ has decided to invest VND 40bil to buy new machine which help to improve production mix and replace Italian imported goods partially.

About expanding distribution network, in 7 months, PNJ has opened 24 large gold stores nationwide, reached 183 in total, covered 44 cities and provinces of Vietnam. Especially, PNJ has received good news that was listed in finalist of JNA (jewelry New Asia) – which is likened The Oscar of Jewelry industry- together with biggest brands in Asia in 3 categories: Employer of the year, Outstanding enterprise of the year– ASEAN, Retailer of the year. Besides, collection “Peaceful spring” which was designed and created by PNJ has won ASEAN Jewellery Design Competition 2015.

PNJ Jewelry Center in Thu Dau Mot, Binh Duong Province was opened 15/08/2015 was the 6th new stores opened in 08/2015.

Ms. Dung also added: “PNJ has tried to reached 200 stores at the end of this year which previously targeted till 2017. Therefore, the company’s expectation to achieve 300 stores in 2022 may come sooner. Jewelry market is still large for PNJ to approach. There’s no many large scale enterprise like PNJ in the world, including Jewelry leading countries such as America, China, Thailand: a manufacturer as well as retailer, wholesaler and exporter.

For investors’ concern on sharp decline of gold price, Ms. Dung said: “Rule of gold trading is buy and sell continuously. Gold flow is very fast which minimizes inventory devaluation, especially gold bar”

About PNJ’s market share, Ms. Dung said: “Regarding to World Gold Council’s data, at the end of 2014, PNJ’s market share was 21%, it has been surely improved now, propelled by new stores opened. For previous years, Q2 normally witnessed weak performance while it has increased 40% yoy this year”. PNJ used to reserve for temporary loss when opening new stores in provinces, but there are no longer loss for stores opened this year, on the contrary they all earned expected result in short term. Mid-end market share was still contributed major proportion to PNJ’s revenue