PNJ Flash Note – NOT RATING

PNJ stock hit its floor limit for a second consecutive session – following a few days of diminished volatility – given concerns on heightened liquidity pressure after the company announced a temporary revision to its product buy-back policy. Accordingly, PNJ commits to fully honoring the repurchase obligations for all products previously sold by PNJ with repurchase commitment; however, payments will be made in multiple installments instead of being settled on the same day, as the practice before July 21, 2026.

News on infraction in diamond certification and the recent closure of independent stores has intensified a wave of resale in the market, exacerbating liquidity pressures across remaining players, including PNJ. The longer the wave lasts, the higher the pressure is, impacting adversely on capital for other obligations for business operation. Based on 1Q2026 consolidated financial statements, we estimate PNJ’s net asset value per share stands at VND21,313/share. The number highlights a quite strong equity foundation based on its financials as of 1Q2026, although further changes may be seen in 3Q, when the market volatility events emerge. These changes will depend on the proportion of its cash reserve (c.VND4,500bn in aggregate) used for buy-back in this period and quality of repurchased inventory. The key to ease pressure lies in restoring consumer trust, which may depend on the speed to complete PNJ’s self-initiated independent international product audits and final conclusions from authorities on related infractions. Given the current uncertainties, we continue to suspend our rating for PNJ. The stock witnessed its average daily trading volume increasing to 7m shares month to date, versus 0.9m shares in June.