PNJ shares hit limit-up 3 sessions as foreign investors buy VND 110B despite Q2 loss

Overview

PNJ (Phú Nhuận Jewelry) shares hit limit-up for a third consecutive session on August 5, 2026, closing at VND 37,900 on the HOSE. The rally was supported by strong foreign net buying of approximately VND 110 billion in that session, even as the company reported a Q2/2026 net loss of VND 283 billion due to a large provision. H1 revenue grew 49.4% year-on-year, but the market’s focus remains on the impact of the provision and the sustainability of the recovery.

Key Facts

• PNJ shares rose 6.91% to VND 37,900 on August 5, marking the third consecutive limit-up session.
• Foreign investors net bought about VND 110 billion of PNJ shares on August 5, the seventh straight session of net buying, totaling approximately VND 569 billion over the period.
• Q2/2026 net revenue reached VND 8,484 billion, up 11.9% year-on-year, but net profit after tax was negative VND 283 billion, down 164.7%.
• H1/2026 net revenue was VND 25,729 billion, up 49.4% year-on-year; net profit after tax was VND 1,185 billion, up 6.3%.
• The company recorded a provision of approximately VND 865 billion in Q2/2026 related to a buyback program that occurred in July 2026.
• Gross margin for H1/2026 was 19.4%, down from 21.4% in H1/2025, due to a higher share of 24K gold in revenue mix.
• Net margin for H1/2026 was 4.6%, down from 6.5% in the prior year.

What Happened

PNJ shares extended their rally on August 5, hitting the daily limit-up for the third straight session. The stock closed at VND 37,900, bringing market capitalization to nearly VND 19,400 billion, a significant recovery from the late-July low. However, the price remains well below pre-incident levels related to the diamond business disruption.

Foreign investors have been a key support, net buying PNJ for seven consecutive sessions, with the latest session seeing about VND 110 billion in net purchases. This brings the total foreign net buying over the streak to roughly VND 569 billion.

The rally comes despite a weak Q2/2026 earnings report. PNJ reported net revenue of VND 8,484 billion, up 11.9% year-on-year, but a net loss of VND 283 billion, down 164.7%, primarily due to a large provision. The company explained that the provision, estimated at VND 865 billion, was related to a buyback program in July 2026 and was made on a prudent basis to ensure transparency and risk management. Management emphasized that the loss does not reflect a decline in core business operations.

Market Context

PNJ, listed on HOSE, has been under pressure since the diamond-related incident, but the recent limit-up streak suggests improving investor sentiment. The stock closed at VND 38 on August 5, up 6.91% on volume of 7.79 million shares. The foreign buying spree indicates renewed interest from institutional investors, possibly viewing the pullback as an opportunity. The broader Vietnamese market has shown resilience, but PNJ’s recovery is notable given the earnings miss.

Strategic Significance

The provision, while hitting Q2 earnings, reflects a conservative approach to risk management, which may reassure long-term investors about the quality of financial reporting. The company’s decision to recognize risks immediately rather than defer them could limit future negative surprises. However, the shift in revenue mix toward 24K gold, which carries lower margins, is a structural concern. The success of the buyback program and the resolution of the diamond business issues will be critical to restoring profitability and investor confidence.

What to Watch

• Q3/2026 earnings release to see if the provision impact is one-off and core profitability recovers.
• Updates on the diamond buyback program and any further provisions or recoveries.
• Continuation of foreign net buying and whether the stock can sustain above the VND 38 level.
• Gross margin trends, particularly the revenue mix between jewelry and 24K gold.
• Any regulatory or legal developments related to the diamond incident.