Dragon Capital Rebuilds PNJ Stake After July Exit: 745,100 Shares

Overview

Dragon Capital’s DCDS and DCDE open-end funds re-established positions in Phú Nhuận Jewelry (PNJ) in August, holding a combined 745,100 shares worth roughly VND 31.37 billion, according to the funds’ August investment reports. The re-entry comes one month after both funds cut PNJ to 0% of assets in July, and follows a diamond-smuggling scandal that drove the HOSE-listed jeweller’s shares down by nearly half from early-July levels.

Key Facts

• DCDS held 690,000 PNJ shares at end-August, worth nearly VND 29.05 billion, or 0.46% of fund net assets.
• DCDE held 55,100 PNJ shares, worth about VND 2.32 billion, or 0.25% of fund net assets.
• Combined position: 745,100 shares, valued at approximately VND 31.37 billion at the end-August price of VND 42,100 per share.
• In July, PNJ was absent from both funds’ portfolios; Dragon Capital-related shareholders also sold more than 2.5 million shares, cutting their stake to 4.56% and dropping below the major-shareholder threshold.
• PNJ shares fell from above VND 63,000 in early July to a low of VND 30,750 within three weeks, then recovered to VND 42,100 by end-August.
• H1 consolidated net profit reached VND 728.5 billion, down 35% year on year, mainly due to provisions tied to the company’s product buy-back policy.
• Buy-backs executed from 1 July to 3 September totalled nearly VND 4,997 billion, with losses of more than VND 1,446 billion and a 100% customer resale rate; total provisions on the buy-back policy exceed VND 2,267 billion.

What Happened

The August reports show DCDS, the largest open-end equity fund on the market, holding 690,000 PNJ shares, while dividend-focused DCDE held 55,100 shares. At VND 42,100 per share at end-August, the combined position was worth about VND 31.37 billion. The reports note this is not yet an allocation large enough to make PNJ a core holding for either fund. The move follows July disclosures in which PNJ disappeared from both portfolios, and Dragon Capital-related shareholders sold more than 2.5 million shares, reducing their ownership to 4.56% and ending their status as a major shareholder.

The re-entry followed a volatile month for PNJ. The stock lost nearly half its value in three weeks, falling from above VND 63,000 in early July to VND 30,750, before recovering to VND 42,100 at end-August. Other foreign institutions also raised PNJ exposure in August: a group represented by Sprucegrove Investment Management lifted its holding above 5%, and a group linked to T. Rowe Price also returned above that threshold. PNJ is in a rebuilding phase after a scandal involving a former leader of its P-Lab appraisal unit and a diamond-smuggling ring. Late in August, Thanh Hóa police announced that none of the diamonds in the smuggling case had entered PNJ’s retail system, which supported a partial share-price recovery.

Market Context

PNJ trades on the HOSE exchange under the ticker PNJ. The stock closed at VND 36,750 on 16 September 2026, below the VND 42,100 end-August reference used to value the Dragon Capital funds’ position, and well under the early-July level above VND 63,000. The shares remain volatile as the market digests the earnings impact of the buy-back provisions and the reputational fallout from the smuggling case. The August buying by Dragon Capital, Sprucegrove and T. Rowe Price-linked vehicles places PNJ within a broader pattern of foreign institutions selectively rebuilding exposure to beaten-down Vietnamese consumer names.

Strategic Significance

For long-term investors, the Dragon Capital re-entry is a signal about valuation rather than a conviction call: at 0.46% of DCDS assets, the position is a toehold, not a core allocation. The investment case now rests on whether PNJ can restore margins after absorbing more than VND 2,267 billion in buy-back provisions and rebuild trust in its retail channel. The police finding that smuggled diamonds never entered PNJ’s stores removes a tail risk around inventory integrity, but the 100% customer resale rate on the buy-back policy shows how fragile consumer confidence remains. PNJ’s competitive position in Vietnam’s jewellery retail market, and its ability to convert store traffic back into full-price sales, will determine whether the August re-entry marks a durable bottom.

What to Watch

• Q3 2026 earnings release, for evidence that buy-back provisions have peaked and core retail margins are stabilising.
• Further Dragon Capital disclosures showing whether DCDS and DCDE raise PNJ above the current 0.46% and 0.25% asset weights.
• Foreign-ownership filings from the Sprucegrove and T. Rowe Price-linked groups, to confirm whether August buying continued.
• Updates on the P-Lab diamond-smuggling case and any remaining legal or regulatory exposure for PNJ.
• Monthly buy-back execution data, including the customer resale rate, as a gauge of consumer confidence in the brand.