Shares of Phu Nhuan Jewelry Joint Stock Company (PNJ) experienced an unexpected surge of nearly 5% on May 29, marking a 33% increase from the trough in early April. This growth was driven by Secretary General To Lam’s directive on managing the gold market effectively, expanding gold import rights, and promoting the development of the jewelry market. This provides greater opportunities for businesses in the jewelry sector, helping to convert stored gold into valuable products. However, PNJ faces significant challenges due to a severe shortage of raw materials and weak consumer demand. Retail jewelry revenue grew by 6% in Q1, but showed signs of slowing compared to Q4 2024. Revenue from 24K gold fell nearly 66% compared to the same period last year. PNJ owns the largest retail network in the country with 429 stores and plans to open an additional 12-25 stores in 2025. However, the scarcity of gold supply continues to hinder retail revenue.
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