Great benefit
Phu Nhuan Jewelry Joint Stock Company (PNJ) has just announced that Ms. Cao Thi Ngoc Dung, Chairwoman of PNJ, registered to buy 475,000 PNJ shares, increasing her ownership ratio to more than 9.37 million units, equivalent to 2.8% of the company's charter capital. The implementation period is from December 25-29.
This is a purchase under the employee stock option plan (ESOP).
The price at which Ms. Cao Thi Ngoc Dung bought PNJ shares in this registration was 20,000 VND/share, much lower than the 80,300 VND/share recorded in the trading session on December 20.
The total amount of money that Ms. Dung will have to spend to own these shares is 9.5 billion VND. Compared to the market value, the female Chairwoman of PNJ will benefit about 28.5 billion VND (equivalent to nearly 1.2 million USD).
Previously, PNJ announced that it would issue nearly 6.6 million employee stock ownership plan (ESOP) shares, equivalent to 2% of outstanding shares, at a price of VND20,000/share from December 15-29.
This is the plan approved by the PNJ Annual General Meeting of Shareholders on April 27.
Participants are key leaders of PNJ and member companies in 2023 who have made positive contributions to exceeding the 2022 business plan.
In 2022, PNJ reported a net profit of VND 1,811 billion, up 176% over the previous year and exceeding the plan by 31%.
With this issuance, PNJ will earn about 132 billion VND. On the stock exchange, these shares are worth about 530 billion VND. That means PNJ's key leaders will benefit about 400 billion VND.
ESOP shares will be restricted from transfer for 1-3 years.
In the first 10 months of 2023, PNJ recorded a net revenue decrease of 8% over the same period to VND 26,380 billion. Profit after tax increased slightly by 3% to VND 1,533 billion.
PNJ stock price is currently around its historical peak thanks to the company's good business results, the market is in peak consumption season and domestic gold prices are increasing sharply; world prices may break out next year.
The price of gold jewelry has increased sharply, with gold rings reaching 63 million VND/tael, about 2.3 million VND/tael higher than the converted world price. This is a factor that can boost the profits of businesses like PNJ with a chain of hundreds of gold, silver, gemstone and jewelry stores nationwide.
Retail is facing difficulties, but PNJ is still strong thanks to gold
Despite having good business results over the past years, the business of Vietnam's number 1 female gold tycoon Cao Thi Ngoc Dung also encountered some problems. PNJ shares were removed from the VN30 pillar stocks basket on the HOSE.
Many recent reports have assessed that the retail industry in general is no longer as positive as before due to low consumer demand. Retail giants such as Mobile World (MWG), Masan (MSN), DigiWorld (DGW)... are all facing difficulties, recording weak revenue and decreased profits.
However, PNJ has more advantages. In 2023, despite the decline in consumption, PNJ still maintained quite good revenue, while profits increased thanks to higher selling prices. People tend to increase gold purchases when the economy is difficult, other investment channels are less attractive. Bank deposits are at a record low, stocks and real estate are gloomy.
In fact, PNJ's revenue has come from gold jewelry trading for many years. But since 2021, revenue from selling gold bars has increased sharply.
In addition, the recent sharp increase in world gold prices has pushed up domestic gold prices, including jewelry and gold bars, rapidly. This could bring greater profits to gold trading enterprises.
PNJ's recently published report shows that, in the 11 months, PNJ's growth was largely concentrated in the jewelry sales segment (accounting for 67.5% of the total cumulative revenue structure: 58.7% retail + 8.8% wholesale), while the gold ratio only accounted for a small portion (30.7%).
PNJ jewelry's large profits come from the fact that this business focuses on reaching the young customer segment, Gen Z, with trendy fashion products.
The domestic price of SJC gold bars in the last days of 2023 continuously set historical peaks and is around 75.6 million VND/tael, about 14-15 million VND/tael higher than the converted world gold price.
In 2024, the price of gold is forecast to continue to increase, possibly reaching 80-90 million VND/tael. The excitement of the gold market is often in line with the increasing profits of gold trading enterprises.
Ms. Cao Thi Ngoc Dung and Mr. Tran Phuong Binh used to be the leading "money couple" in Vietnam. Ms. Dung used to be the Chairwoman of DongABank, then retired to become an advisor and focused on managing the work at Phu Nhuan Jewelry Joint Stock Company.
The business of the Nam Dinh-born tycoon has just made a strong move, entering a new field after achieving record revenue despite being entangled in many controversies during the Covid-19 pandemic.
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