Recently, gold bar trading is typically less profitable so most of the gold enterprises are penetrating deeper into the market of gold jewelry, diamond – the products with higher profit margins.
Breakthrough thanks to innovation
Grasping the core point, Phu Nhuan Jewelry Joint Stock Company (PNJ) – a big business in the jewelry industry has changed its strategy in recent years when focusing on jewelry and the result is huge.
In 2015, total sales of PNJ reached nearly VND 7.7 trillion, of which business in gold jewelry accounts for 78% of total revenue. This is a desirable result of many gold enterprises when the gold price plummeted since late 2011 while the State Bank tightened the market of gold bars in 2012.
In addition, the mark of 2015 when PNJ opened 48 new stores and with 194 centers of jewelry spreading across 45 provinces and cities nationwide by the end of 2015, PNJ now owns the largest distribution system of jewelry in Vietnam.
The past year was also a year of excitement for corporate shareholders, the total dividend in 2015 paid by PNJ to shareholders was 15% in cash – a “dreamy” figure of many shareholders or banks or other enterprises.
Also PNJ reached the top 50 best listed companies in Vietnam in 2015, while its value of shares is constantly increasing. Our statistics show that in the past 6 months, PNJ has reached the top stocks on the HOSE rising to the highest price, but also the highest price since listing (adjusted price).
PNJ shares have come up from the end of 2015 so far it has risen to the highest price since listing (2009): VND 61,000 /share.
The price of PNJ shares since listing
Promising feats in 2016
Oriented as the leading processing company and jewelry retailer in Asia, ranking No. 1 in the market of medium and high-end jewelry in Vietnam, PNJ considers 2016 as an important year to mark the milestone of 28 years of sustainable development and the fourth year of vigorous switch from the comprehensive restructuring of 10 year strategic business development (2012-2022) of PNJ.
Chairman of the BOD – Ms. Cao Thi Ngoc Dung said this year PNJ will continue on its positive growth, implement key measures such as investment, selective expansion of retail network in the country, market development, improvement of customer service quality, investment in machinery and production line of high-tech jewelry etc. the commitment showing strong ambition for PNJ to perform orientation of the 2016 target.
According to the experts, the business prospect of gold jewelry in the country will grow rapidly. Special thanks to positive factors, the trade agreements recently signed such as TPP, AEC, and potential businesses in the country will stand in front of a large Olympic games to reach out to the region and the world.
These events will certainly impact the market as well as will pose new challenges to the adaptability of active businesses, including PNJ, before a large playground full of fierce competition.
PNJ leaders said the challenges will also be the opportunities for PNJ to continue to conquer new successes and promises many surprising feats in 2016.
At the end of the first of 2016, PNJ revenue reached VND 2,356 billion, increased by 12% over the same period and reached 27% of the calendar year plan. The sales of jewelry reached VND 1,820 billion, increased by 20% over the same period and reached 27% of the calendar year plan. Gross profit reached VND 415 billion, increased by 45% over the same period and reached 32% of the calendar year plan.
In March 2016, PNJ continued to be the only jewelry enterprise in Vietnam to be named in the list of 100 companies with the best working environment in 2015. More honorably, in early April 2016, Ms. Cao Thi Ngoc Dung – Chairman of the Board of Directors and CEO of PNJ – was voted by Forbes Asia Magazine into Asia’s 50 Power Businesswomen.
PNJ always constantly promotes the strengths of a nationwide network, in the recent morning of May 21, 2016, PNJ held a Grand opening ceremony of the 200th Jeweler Center of PNJ located at No. 5 Tan My street, Tan Phu ward, District 7, Ho Chi Minh City. Many years ago, the figure of 200 stores across the country was the dream of PNJ but today that dream has come true.
The 200th store was opened on May 21, 2016
Ms. Nguyen Thi Cuc – Deputy General Director of PNJ made speech at the opening ceremony of the 200th Jeweler Center said that since the beginning of 2016, PNJ has opened 10 new Jeweler Centers, in the plan to launch 38 new Jeweler Centers this year.
PNJ strategy is laid out for 10 years from 2012 – 2022, PNJ’s distribution system will gain 300 stores nationwide. With the pace of development at present, PNJ can reach 300 stores earlier than planned, further pursuits its vision of PNJ to be the leading processing company and jewelry retailer in Asia, holding the number one position in the market of middle and advanced segment in Vietnam.
Ms. Cuc emphasized that the investment to open a new store costs about VND 13 billion, the target set out for 18 months is that newly opened stores will be profitable, but almost newly opened stores took effective earlier than expected. PNJ stores are located in urban centers, crowded cities, prime location; the space of store has always been designed with luxury and modern best service for customers.
Thus, with efforts and ambitions of PNJ, in the near future many surprises will extend the journey of a successful brand of PNJ gold, which is always strong and shining.
Source Tri Thuc Tre