PNJ shares of Phu Nhuan Jewelry Joint Stock Company increased over 5% at the beginning of the week, reaching a price of 87,600 VND. Although it has not reached the 9x level, PNJ is benefiting from amendments to the Ministry of Justice’s Gold Business Management Decree. According to the draft dated July 11, the state’s monopoly on gold production and import will end, allowing eligible businesses and banks to participate in gold imports. The import method has also been relaxed to a minimum gold content of 99.5%. The State Bank will distribute import quotas based on actual business situations and needs. Although some proposals, such as establishing a national gold exchange or managing gold prices, were not included in this draft, the amendment to the decree presents a better opportunity for PNJ to access the gold raw material supply. Vietcap Securities believes this will mitigate difficulties for PNJ and enhance its ability to exploit import licenses once granted.
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