PNJ Adjusts Diamond Buyback Policy Amid Sellback Surge, Stock Hits 3-Year Low

Overview

Phu Nhuan Jewelry (PNJ) has revised its diamond buyback policy, limiting daily payouts and extending full settlement to up to 120 days, effective July 21, 2026. The move comes amid a sharp increase in customers selling back diamond jewelry. PNJ’s stock closed at 35,500 VND on July 22, a 3-year low, down 46% in one month, with market capitalization at 18,000 billion VND.

Key Facts

• PNJ holds 923 billion VND in cash and equivalents as of March 31, 2026, up 77% from year-end 2025.
• Total cash, deposits, and short-term financial investments amount to approximately 4,500 billion VND.
• Inventory fell sharply to 13,419 billion VND from 15,835 billion VND at the start of the year.
• Total liabilities decreased to 5,291 billion VND from 6,888 billion VND, with short-term bank debt at about 2,900 billion VND.
• The new policy limits daily payments and splits settlement into 5 installments over a maximum of 120 days.
• PNJ stock hit 35,500 VND on July 22, 2026, a 3-year low, losing 46% in one month.
• Market capitalization stands at 18,000 billion VND.

What Happened

PNJ announced a change in its diamond buyback payment policy, effective July 21, 2026. Previously, the company paid the full transaction value on the same day. Under the new policy, daily payments are capped based on the company’s processing capacity, and full settlement is extended to a maximum of 120 days, divided into five installments. The adjustment follows a sudden surge in customers selling back diamond jewelry, which has strained the company’s operational capacity.

According to PNJ’s Q1 2026 financial report, the company holds substantial cash and deposits, totaling over 4,400 billion VND. However, the policy change suggests that the company is managing liquidity risk associated with the buyback wave. The stock market reacted negatively, with PNJ shares falling to a 3-year low.

Market Context

PNJ shares on HOSE have declined sharply, closing at 35,500 VND on July 22, 2026, down 46% in one month. The stock is at its lowest level in three years, reflecting investor concern over the diamond buyback issue and its impact on the company’s retail operations. The broader market context includes a challenging environment for jewelry retailers, with consumer demand fluctuating and inventory levels high. PNJ’s inventory dropped to 13,419 billion VND from 15,835 billion VND at the start of the year, indicating a reduction in stock but also potential pressure from sellbacks.

Strategic Significance

The policy change signals that PNJ is proactively managing its cash flow and operational capacity in response to a sudden increase in diamond sellbacks. While the company has ample liquidity, the extension of payment terms may help smooth out cash outflows and reduce the risk of a liquidity crunch. For long-term investors, the key question is whether this is a temporary adjustment or a sign of deeper issues in the diamond market. PNJ’s strong balance sheet, with over 4,400 billion VND in cash and deposits, provides a buffer, but the stock’s sharp decline suggests market skepticism about the company’s ability to navigate the current sellback wave without impacting profitability.

What to Watch

• PNJ’s Q2 2026 earnings report, expected in August, for revenue and profit trends.
• Daily trading volume and price action of PNJ stock for signs of stabilization.
• Any further policy adjustments or communication from PNJ regarding diamond buyback terms.
• Industry-wide data on diamond sellback trends and consumer sentiment.
• Changes in PNJ’s inventory levels and cash position in subsequent quarterly reports.