Research Center
Quay lại

PNJ [BUY +23.1%] - New initiatives solidify bright long-term growth - Update

We reiterate our BUY recommendation on PNJ with 23.1% total stock return. Our TP rises 23% mainly due to a 1.1-ppt contraction in WACC and an increase in target 2018 PER from 17.3x to 21.5x driven by an expansion in the peer-adjusted PER. Recurring NPAT surged 41% YoY in 2017 as high-margin retailing revenue jumped 39% YoY thanks to 21% SSSG, 48 new PNJ Gold stores and full contribution from stores opened in 2016.