PNJ Stock Hits 6-Year Low After Q2 Loss on Diamond Buyback Provision

Overview

PNJ (Vàng Phú Nhuận) reported a net loss of VND 283 billion in Q2 2026, a sharp reversal from a profit of VND 437 billion in the same period last year, due to a large provision for diamond buybacks. The news sent the stock to its lowest level in nearly six years, with shares falling to VND 30,250 on July 31, 2026. The loss underscores the impact of a legal issue involving P-Lab and a surge in customers selling back diamond jewelry.

Key Facts

• PNJ reported a Q2 2026 net loss of VND 283 billion, versus a profit of VND 437 billion in Q2 2025.
• Revenue in Q2 reached VND 8,484 billion, up nearly 12% year-on-year.
• The company booked a provision of VND 865.5 billion related to diamond buybacks.
• Selling and administrative expenses rose to over VND 1,819 billion in Q2, up about VND 760 billion year-on-year.
• From early July to the financial report date, the ratio of buyback value to total revenue was estimated at 237%.
• PNJ’s stock hit VND 30,250 on July 31, 2026, a six-year low, with market capitalization around VND 15,500 billion.
• In H1 2026, PNJ still posted a net profit of over VND 1,184 billion, up 6.2% year-on-year, on revenue of VND 25,951 billion (+49%).

What Happened

PNJ released its Q2 2026 financial statements on July 31, revealing a net loss of VND 283 billion, a stark contrast to the profit of VND 437 billion in Q2 2025. The loss was driven by a special provision of VND 865.5 billion recorded after a sharp increase in customers requesting to sell back diamond products. The provision was estimated based on the value of diamonds bought back after the reporting period, recoverable value based on market prices, and historical recovery rates.

The company also noted that from early July to the report date, the value of goods bought back was 237% of total revenue, straining working capital. PNJ said it has proactively balanced funding, maintained necessary financial resources, and negotiated extended payment terms for buyback transactions during the peak period.

The stock’s decline began after a legal issue involving P-Lab, followed by concerns about customer confidence and cash flow. Despite a brief rebound on July 27, selling pressure resumed, pushing the stock to new lows.

Market Context

PNJ shares on HOSE fell 6.31% to VND 30,000 on July 31, 2026, with volume of 5.78 million shares. The stock has lost more than half its value since early July, when it traded above VND 63,000. The decline reflects broader investor concerns about the company’s exposure to the diamond buyback issue and its impact on liquidity. The retail sector in Vietnam has been under pressure, but PNJ’s situation is company-specific, driven by the P-Lab incident and its aftermath.

Strategic Significance

For long-term investors, the key issue is whether PNJ can manage the diamond buyback crisis without lasting damage to its brand and balance sheet. The provision of VND 865.5 billion is a significant one-off charge, but the company remains profitable on a half-year basis. The strategic question is whether customer trust can be restored and whether the buyback wave will subside. PNJ’s ability to negotiate payment terms and maintain liquidity will be critical. If the buyback ratio normalizes, the stock could recover, but the risk of further provisions remains.

What to Watch

• Monthly buyback-to-revenue ratio updates from PNJ’s internal statistics.
• Q3 2026 earnings release, expected in October, to see if losses persist.
• Any regulatory or legal developments related to the P-Lab incident.
• PNJ’s cash flow and working capital management in the coming quarters.
• Customer sentiment indicators, such as sales trends for diamond products.