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PNJ [BUY +32.6%] - Store expansion to remain fast-tracked for years to come - Update

We reiterate BUY rating on PNJ with 33% total stock return, inclusive of a 2% dividend yield. Our TP increases by 11% as we factor in management’s aggressive store expansion plan (500 store count by YE2022). Valuation looks appealing with PER 2018 of 13.4x. Recurring NPAT surged 30% in 9M 2017 vs 9M 2016, driven by the high-margin retail segment. Reported NPAT grew faster at 42% in 9M 2017 due to provisions for DongA Bank in 9M 2016.