PNJ Market Cap Falls Below VND 10,000B After Diamond Smuggling Scandal

Overview

Phú Nhuận Jewelry (PNJ), listed on HOSE, saw its market capitalization fall below VND 10,000 billion after shares dropped to 18,750 VND, the lowest level since May 2017. The decline follows the arrest of Đặng Ngọc Thảo, former Director of subsidiary P-Lab, on diamond smuggling charges, which triggered a wave of customer resale demand and a VND 283 billion loss in Q2.

Key Facts

• PNJ closed at 19,000 VND on 7 October 2026, down 6.70%, with volume of 45,533,400 shares.
• Intraday low of 18,750 VND marks the weakest price since May 2017, breaking below the March 2020 Covid low.
• Market capitalization fell to approximately VND 9,595 billion (about USD 384 million), down from a USD 1 billion peak earlier in the year.
• Shares have fallen nearly 48% since mid-September, from around 63,100 VND in early July.
• PNJ bought back more than VND 7,060 billion of goods from customers in the first 27 days of July; returned goods reached about VND 5,900 billion between 1-20 July against revenue of nearly VND 1,600 billion.
• Q2 loss of VND 283 billion, driven by an VND 865 billion provision tied to the diamond resale wave.
• T. Rowe Price Associates raised its stake above 6% on 19 August with a purchase of nearly 4.9 million shares.

What Happened

According to the article, the sell-off began in early July when news emerged that Đặng Ngọc Thảo, former Director of P-Lab, a PNJ member unit, had been arrested for diamond smuggling. The shock quickly spread beyond the trading board: customer demand to resell jewelry, particularly diamond products, surged, forcing the company to spend heavily on its buyback policy. In the first 27 days of July, PNJ repurchased more than VND 7,060 billion of goods from customers.

The financial impact was immediate. PNJ reported a VND 283 billion loss in Q2, with an VND 865 billion provision related to the diamond resale wave. The article notes that the decline was not linear: after falling to a near six-year low, bottom-fishing capital pushed the stock to several ceiling-price sessions, and foreign funds including T. Rowe Price Associates and some Dragon Capital-managed funds rebuilt positions. Those short-term rebounds did not reverse the broader trend, and the stock resumed its decline into September and October.

Market Context

PNJ trades on HOSE and is classified under Personal & Household Goods. The stock has lost nearly half its value in under a month, with the 7 October session extending the downtrend on heavy volume of 45.5 million shares. The article notes that foreign investors were net sellers in a record-matching session, and that the stock has now erased gains accumulated over nearly a decade. The decline contrasts with broader Vietnamese market conditions, where gold bar prices have moved sideways for four consecutive sessions, suggesting the pressure is company-specific rather than sector-wide.

Strategic Significance

For long-term investors, the core question is whether the diamond resale wave represents a one-time shock or a structural hit to PNJ’s retail franchise. The VND 865 billion provision and the VND 7,060 billion buyback in July indicate the company absorbed significant inventory at a time when consumer trust was impaired. The arrest of a subsidiary executive raises governance and compliance questions that go beyond the immediate financial loss, particularly around sourcing and import controls at P-Lab. Recovery depends on whether PNJ can restore customer confidence in its diamond segment and whether the provision proves sufficient to cover the full resale cycle.

What to Watch

• Q3 2026 earnings release, expected in late October, to confirm whether the VND 865 billion provision fully covers the resale wave.
• Any further regulatory or legal developments in the P-Lab diamond smuggling case, including additional arrests or formal charges.
• Foreign ownership filings from T. Rowe Price Associates and Dragon Capital-managed funds to gauge whether institutional buyers continue to add or exit.
• Monthly disclosure of customer buyback volumes and returned goods value, which would indicate whether resale pressure is easing.
• PNJ’s diamond inventory and sourcing policy updates, including any changes to P-Lab’s role within the group.