We attended PNJ’s AGM on April 27. Below are our key takeaways.

Expecting consumption to decline in Q2-Q3 2023. Although PNJ’s Q1 2023 results were resilient, early Q2 2023 numbers have shown declines. Management has become conservative on its outlook for 2023 and expects a meaningful recovery of consumption will start in Q4 2023 in the best-case scenario. Nevertheless, PNJ targets revenue and NPAT to grow 5% YoY and 7% YoY in 2023, respectively, which management believes is relatively ambitious.

Plan to open 20-25 new stores in 2023. In Q1 2023, PNJ opened eight new gold stores. From our observation, the new stores in Q1 2023 were mostly opened in tier 2-3 regions of HCMC and some underpenetrated central and northern cities/provinces. We currently forecast PNJ to open 20 new stores in 2023.

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