PNJ boss wants to sell more than million shares

According to the recent information announcement, Mr. Le Tri Thong – General Director and Vice Chairman of the Board of Directors of Phu Nhuan Jewelry Joint Stock Company (PNJ) – registered to sell 500,000 shares. The trading method is agreement or order matching from October 14 to November 12.

If successful, this leader’s ownership ratio will decrease from 0.5% to 0.36%. It is estimated that Mr. Thong can earn about 47.75 billion VND (according to the closing market price on October 10).

Similarly, Ms. Dang Thi Lai – Senior Director and Member of the Board of Directors – also registered to sell 600,000 PNJ shares during October 14-30. After the transaction, her ownership ratio decreased from 0.73% to 0.55%. It is expected that Ms. Lai can collect about 57.3 billion VND.

Thus, the two PNJ leaders are expected to earn about 105 billion VND after disposing of more than a million shares. Both said the purpose of the transaction was due to personal financial needs.

The above move took place in the context of PNJ shares trading at the average price range from the beginning of the year until now, about 95,500 VND per share. This level is about 12% lower than the peak in mid-August.

Previously, this enterprise received a sanction decision from the Banking Inspection and Supervision Agency for not fully meeting regulations on anti-money laundering. They said they had paid the fine and proactively corrected the shortcomings and consequences.

The above sanctioning decision was made after an interdisciplinary inspection of gold trading enterprises across the country from May 23 to September 10. This is an inspection under the direction of the Prime Minister at 4 gold companies including SJC, PNJ, DOJI and Bao Tin Minh Chau, in addition to two banks, TPBank and Eximbank. The inspection content focuses on compliance with gold trading laws; preventing and combating money laundering; Prepare and use invoices, documents and fulfill tax obligations. Inspection period from 2020 to mid-May 2024.

Since gold’s “fever”, PNJ has recorded a sharp increase in precious metal revenue. Accumulated in the first 8 months of the year, 24K gold revenue reached more than 9,913 billion VND, an increase of nearly 53% over the same period last year.

However, this is not necessarily positive. The average gross profit margin in 8 months reached 16.6% – down 2% over the same period. The reason is due to the change in revenue structure when 24K gold accounts for nearly 37% of the proportion. Meanwhile, the profit margin of this product is very low, less than 1%. In fact, 8-month revenue of the entire PNJ system increased by 27%, but profit after tax increased by less than 3% over the same period.

In a recent report, the analysis team of MB Securities (MBS) said that the current PNJ stock price reflects most of the negative factors in business results in July and August. They forecast the retail market to Recovery was about 5% over the same period and consumption demand improved in the fourth quarter. Besides, operating costs are optimized by PNJ, which will help this year’s net profit increase by 10%.