Phu Nhuan Jewelry: Cut earnings, higher equity premium risk and maintain Neutral

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Phu Nhuan Jewelry: Cut earnings, higher equity premium risk and maintain Neutral

Phu Nhuan Jewelry UBS Research

UBS Research THESIS MAP Thesisa guideMapto our thinking and what´s where in this report

Pivotal Questions Q: Can Vietnam's jewellery market deliver mid single-digit growth from 2026?

Yes, in our view. According to Euromonitor, Vietnam's jewellery and watch retail market is expected

to deliver 6% growth pa in 2026-30F. The key drivers of Vietnam's growing jewellery and watch retail

market have been the country's strong economic performance, rapidly rising income per capita and

middle-income earners, as well as the modernising of accessories, in our view.

UBS Evidence Lab inside: tracing the evolution of Vietnam's jewellery craftsmanship (03/24/2023)

Q: Can PNJ regain consumers' confidence post P-Lab controversy?

Slowly, in our view. The P-Lab incident has created a period of heightened uncertainty, during which

consumers may adopt a more cautious stance, return and exchange activity could rise, and PNJ would

likely be required to increase investment in customer engagement, quality assurance, and brand

rebuilding initiatives in order to restore consumers' confidence. While the company’s ability to

accommodate customer returns reinforces its commitment to brand credibility, longer-term sales

growth will depend on more proactive customer engagement and verified product traceability and

origins to restore consumer confidence and support revenue growth.

Management addresses PNJ-Lab controversy; UBS views potential impacts (06/06/2026)

UBS VIEW We maintain our Neutral rating on PNJ, as we believe restoring customer confidence and recovering

lost sales will likely be a gradual process. While management has taken steps to address investor