NGÂN HÀNG NHÀ NƯỚC VIỆT NAM BỘ GIÁO DỤC VÀ ĐÀO TẠO

TRƯỜNG ĐẠI HỌC NGÂN HÀNG TP. HỒ CHÍ MINH

KHOA TÀI CHÍNH

-----OO0OO----

BÀI TẬP NHÓM

MÔN TÀI CHÍNH DOANH NGHIỆP
 DỰ ÁN: CÔNG TY CỔ PHẦN VÀNG BẠC ĐÁ QUÝ PHÚ NHUẬN (PNJ)
Nhóm: GROUP 3
Lớp:FIN303_2321_10_L22
Niên khóa: 2022-2026
GVHD: Nguyễn Thị Như Quỳnh

TP.Hồ Chí Minh, tháng 4 năm 2024

Contents
1. Financial Condition Analysis.....................................................................................5
1.1. Liquidity Ratios....................................................................................................5
1.2. Rrofitability Ratios...............................................................................................6
1.3. Asset Management Ratios...................................................................................7
1.4. Capital Struture....................................................................................................8
1.5. Market Value........................................................................................................9
2. Stock Valuation............................................................................................................9
3. Cost of capital............................................................................................................11
4. Building a porfolio:...................................................................................................12

2
 INTRODUCTION
In the context of the current remarkable development of the market economy, there are numerous
companies and businesses established in various fields with large, medium, and small scales.
Along with that, economic integration between countries around the world has made businesses
increasingly competitive with each other. To survive, stand firm, and develop in such a context,
besides producing and providing the best products or services to the market, businesses also
require strong financial potential.

On the other hand, following the development trend of the economy, financial relationships are
also becoming increasingly rich and diverse. For businesses, the top goal is to maximize their
value. Therefore, businesses need to set for themselves a correct direction and simultaneously
create high competitiveness against both domestic and foreign companies.

From this reality, it can be seen that managers need to directly control all business activities of
the enterprise by carefully analyzing the financial situation over time using important financial
indicators such as liquidity, profitability, asset management, capital structure, and market value.
Besides, investors can use stock valuation methods to determine the fair value of stocks to make
appropriate investment decisions. Moreover, they can also analyze the cost of capital,
profitability ratios, and risk of the company to assess the effectiveness of business operations and
the level of risk when investing in the company. Thanks to that, business owners and investors
will have basic and useful information to make decisions and orientations for the future of the
business.

Recognizing the importance of financial analysis for the existence and development of the
enterprise, our group has conducted a research project on "Financial Analysis of Phu Nhuan
Jewelry Joint Stock Company from 2018 to 2022"

3
Phu Nhuan Jewelry Joint Stock Company
1. History begin:
 PNJ was formerly known as Phu Nhuan District Jewelry and Gems Store, established on
April 28, 1988, under the People's Committee of Phu Nhuan District.
 In 1990, the store was upgraded to Phu Nhuan Remittance Handicraft Company, directly
under the City Party Committee's Finance and Administration Board. PNJ's Phoenix gold
bar brand was also born from this time.
 In 1992, the Company changed its name to Phu Nhuan Jewelry Company.
 In January 2004, PNJ officially switched to operating as a joint stock company with the
name Phu Nhuan Jewelry Joint Stock Company.
 In April 2008, PNJ and Dong A Commercial Joint Stock Bank officially put gold bars
branded "Phoenix PNJ - DongA Bank" into circulation on the market.
 In March 2009, PNJ shares were officially listed on HOSE, increasing charter capital to
400 billion VND.
2. Business:
 Diamond and gemstone testing services
 House for rent
 Producing and trading finished gold jewelry; silver; precious stones, finished gold bars
3. Distribution:
Phu Nhuan Jewelry (PNJ) is a leading jewelry and gemstone retailers in Vietnam. PNJ currently
has a nationwide distribution network of 166 retail shops and more than 3000 wholesale clients,
in addition to strong business connections in Australia, USA, EU and Japan. Apart from gold bar
trading, PNJ has five major jewelry concepts: (i) CAO: in the high-end category targeting
successful business women; (ii) Jemma: accessories targeting a client segment in between the
mid-income and high-income groups; (iii) PNJ Gold: targeting women over 30 years old; (iv)
PNJ Silver: targeting young girls and office women; and (v) Yabling: feeding teenagers’ needs
for accessories at low prices

4
 1. Financial Condition Analysis
1.1. Liquidity Ratios
LIQUIDITY 2018 2019 2020 2021 2022 Industry
RATIOS Averages
Current 2.02 1.83 2.21 2.04 2.45 2.74
Ratio
Quick Ratio 0.16 0.08 0.19 0.12 0.3 1.87

3 PNJ's current ratio over the years mentioned has

consistently been greater than 1. This demonstrates
2.5
the company's high liquidity and favorable financial
2 position.
1.5 Curent Ratio
In general, during the period of 2018-2022, PNJ's
Industry Av-
1 erages short-term payment ratio increased (from 2.02 to
2.45). However, the increase was not continuous (it
0.5 decreased in 2019 from 2.02 to 1.83 and in 2021
0 from 2.21 to 2.04)
2018 2019 2020 2021 2022
The current liquidity ratios over the years are
consistently lower than the industry average (1.87), indicating that the company's business
5
operations are not secure and pose significant risks. This suggests that PNJ is not effectively
optimizing its assets.

2 PNJ has had a quick ratio consistently below 1 for

1.8 5 consecutive years, indicating that the company
1.6
1.4
may struggle to meet its debt obligations when they
1.2 come due. This implies that its short-term assets are
1 Quick Ratio insufficient to cover its short-term liabilities and it
0.8 Industry Av-
erages
may need to sell inventory early to ensure debt
0.6
0.4 repayment, putting the business in a financially
0.2 precarious position.
0
18 019 020 021 022 Overall, during the period of 2018-2022, PNJ's
20 2 2 2 2
quick ratio increased (from 0.16 to 0.3), but not
consistently (in 2019 it decreased from 0.16 to 0.08 and in 2021 from 0.19 to 0.12). And it still
remains significantly lower than the industry average (1.87).

1.2. Rrofitability Ratios

2018 2019 2020 2021 2022 Industry
Averages
Net Profit 6.59% 7.02% 6.10% 5.26% 5.34% 0.59%
Margin
Return on 14.91% 13.88% 12.61% 9.69% 13.58% 6.52%
total assets
ROE 25.63% 26.41% 20.40% 17.11% 21.44% 14.44%

8.00% - PNJ's net profit margin ratio has shown a

decreasing trend from 6.59% in 2018 to 5.34% in
7.00%
2022. However, it still remains higher than the
6.00% industry average (0.59%).
5.00% - Overall, the indices over the 5-year period also
Net Profit indicate the company's good business
4.00%
Margin performance. The company needs to regularly
3.00% Industry Av-
erages evaluate, control, and develop these indices to
2.00% attract investments.
1.00%

0.00%
18 19 20 21 22
20 20 20 20 20

6
 16.00% PNJ's return on assets (ROA) has shown a
14.00% decreasing trend from 14.91% in 2018 to
13.58% in 2022. It decreased steadily from
12.00%
2018-2021 and increased again in 2022.
10.00%
8.00% ROA The ROA of PNJ over the years has
Industry Av- consistently been higher than the industry
6.00% erages
4.00% average (6.25%), which is a very positive
sign for the company. It indicates that the
2.00%
company efficiently utilizes its assets and
0.00%
optimizes available resources.
18 19 20 21 22
20 20 20 20 20
Although PNJ's ROA has not dropped to
excessively low levels over the 5-year period, it could still affect investor attraction.
Therefore, the company needs to implement cost-saving policies and measures to
enhance profitability.

30.00% PNJ's return on equity (ROE) has shown a

decreasing trend from 25.63% in 2018 to 21.44% in
25.00%
2022. However, it still remains higher than the
20.00% industry average (14.44%), indicating that PNJ
15.00% ROE effectively utilizes shareholders' equity.
Industry Av-
10.00% erages PNJ needs to maintain and further increase its ROE
by increasing after-tax profits and reducing
5.00%
expenses.
0.00%
18 19 20 21 22
20 20 20 20 20

In general, based on the profitability indices, it is evident that PNJ has operated relatively
efficiently over the past 5 years. PNJ demonstrates a quite high profitability compared to the
general landscape. The company has effectively utilized borrowed capital, thereby amplifying
the return on equity higher than the return on assets.

1.3. Asset Management Ratios

ASSET 2018 2019 2020 2021 2022 Industry
MANAGEMENT Averages
RATIOS
Inventory Turnover 2.37 1.93 2.15 1.82 2.66 7.87
Total Asset Turnover 2.26 1.98 2.06 1.84 2.54 -
Average Inventory 153.8 189.5 169.7 200.4 137.2 -

7
Days

9
8 PNJ's inventory turnover ratio over the years
7 has consistently been much lower than the
6 industry average of 7.87. This suggests that the
5 Inventory company's inventory management may not be
Turnover Ratio
4 Industry Av- efficient..
3 erages
2 In general, this ratio has slightly increased from
1 2.37 times in 2018 to 2.66 times in 2022, but
0 the increase has not been consistent. The
2018 2019 2020 2021 2022 company's inventory turnover is very low,
indicating a slow sales turnover and significant inventory holding.

The overall performance of PNJ's total asset

Total Asset Turnover utilization over 5 years has increased from 2.26 in
3 2018 to 2.54 in 2022. This indicates that the company
2.5 efficiently utilizes its total assets in its business
2 Total Asset
1.5 Turnover operations.
1
0.5 The fact that this index for PNJ is high and greater
0
than 1 indicates that the company is operating very
18 019 020 021 022
20 2 2 2 2 efficiently in using its total assets to generate profits.

In general, PNJ's average inventory turnover cycle

Average Inventory decreased from 154 days in 2018 to 137.2 days in
Days 2022. The faster the turnover, the more sales are
250
made, leading to a reduction in the number of days
200 Average Inven- inventory is held. This is a positive sign for the
150 tory Days company. However, this index increased in 2019 from
100 154 to 189.12 days and in 2021 from 169.8 to 200.5
50
days. The company made timely adjustments to bring
0
8 9 0 1 2
the index back down the following year.
1 1 2 2 2
20 20 20 20 20
However, PNJ's average inventory turnover cycle over
the years remains very high, indicating that the company is facing difficulties in selling its

8
products.

1.4. Capital Struture

2018 2019 2020 2021 2022 Industry
Averages
Debt ratio 42% 43% 38% 43% 37% 89%
Equity ratio 58% 57% 62% 57% 63% 11%
Debt to 0.7 0.8 0.6 0.8 0.6 1.65
Equity ratio
Financial 1.7 1.8 1.6 1.8 1.6 -
Levergage
ratio

From 2018 to 2020, PNJ maintained a relatively low and stable debt ratio, ranging from 38% to
43%. Meanwhile, the equity ratio showed stable growth and reached a high level, fluctuating
from 57% to 63%. The debt-to-equity ratio (D/E) over the past 5 years has consistently remained
below 1, ranging from 0.6 to 0.8.

PNJ's low and stable debt ratio indicates that the company has tightly controlled the use of equity
capital and maintained a reasonable level of debt, minimizing financial risks. On the other hand,
the stable and high growth of the equity ratio reflects investors' confidence in PNJ's profit-
making ability and growth potential.

PNJ's capital structure is relatively healthy with a low debt ratio, high equity ratio, and a
moderate level of financial leverage, indicating the ability to meet debt obligations. The
company can sustain this growth pace to ensure financial stability and safety in the future.

However, with the low debt ratio, it can be seen that PNJ has not fully utilized the potential of
raising capital through debt, resulting in not maximizing financial leverage and the company's
growth potential. This raises a question about careful consideration in managing capital structure
and using various sources of capital to achieve a balance between optimizing profits and
minimizing financial risks.
Market Value
2018 2019 2020 2021 2022
P/E 13.34 14.30 17.06 21.26 11.92
P/B 4.15 4.23 3.51 3.64 2.62
EPS 6,841 4,896 4,308 4,197 5,223

During this period, PNJ's price-to-earnings ratio decreased (from 13.34 in 2018 to 11.92 in 2020)
and showed significant fluctuations.

9
Overall, PNJ's earnings per share (EPS) decreased from 6,841 VND per share (2018) to 5,223
VND per share (2022). This affects the company's ability to attract investments.

PNJ's EPS is currently at a relatively good level, indicating that investing in PNJ will generate
good profits. However, this index has been trending downwards in recent years and may increase
in the coming years.

2. Stock Valuation
Gordon Growth Model

D1 D ×(1+ g)
P0= = 0
r e −g r e −g

In which:

P0: Actual market price of the stock today

D1: The dividend of stockholder expected to receive

D0: Dividends that shareholders received in the previous year

g: expected growth rate in dividends as predicted by investors (g = Tỷ lệ LNGL x ROE)

re: expected rate of return

This is the rate at which dividends are expected to increase in the future. To estimate this value,
the team used historical data on PNJ's dividend growth from 2018 to 2022 to determine the
expected average dividend growth rate.

Re= 20%

g= 18.26%

Actual market price of the stock today (P0)

10
 D0 × ( 1+ g ) 2000× ( 1+18.26 % )
P 0= = =6181.91
( r e −g ) ( 20 %−18.26 % )

Assessment: The valuation model of PNJ company uses Gordon Growth Model method

-Inputs include:

+Dividend payout ratio

+Return on Equity (ROE)

+Retained earning ratio +Rate of growth (g)

+The dividend of stockholders expects to receive at the end of each year t -Based on the
spreadsheet, we can see:

+Dividend payout ratio: This ratio has been relatively stable over the past 5 years, ranging from
10% to 20%. This shows that the company has a consistent dividend policy.

+Return on Equity (ROE): The company's ROE is relatively high, averaging 22.06% over the
past 5 years. This shows that the company uses equity effectively to generate profits.

+Retained earnings ratio: This ratio is high, averaging 82.4% over the past 5 years. This shows
that the company focuses on reinvesting profits for development.

+Growth rate: The expected dividend growth rate is 18.26% -Based on the calculated intrinsic
value, we can conclude:

+The intrinsic value (p0) of PNJ is VND 6181.91 per share

-> The market is highly valuing PNJ's growth potential in the future. This is reflected through
various factors such as high dividend growth rate, high ROE ratio, and a reasonable dividend
payout ratio. PNJ is focusing on reinvesting profits to develop the company, which is a positive
factor for future growth

3. Cost of capital
n
WACC =∑ r i × w i
i=1

In which:

WACC: Weighted average cost of capital

r i : After-tax cost of capital I

w i: percentage of capital i in capital structure

11
Analysis:

PNJ's weighted average cost of capital (WACC) ratio decreased from 6.00% in 2018 to 4.85% in
2022. This indicates that PNJ has managed its cost of capital well during this period, possibly
through optimizing its capital structure and improving its capital efficiency.
PNJ's WACC has been lower than the risk-free rate (Rf) for all years, which could suggest that
PNJ has the potential to generate returns higher than its cost of capital. This could be a positive
sign regarding the company's financial performance.
However, to have a comprehensive assessment of PNJ's financial health and performance, it is
necessary to review its detailed financial results, capital structure, profitability, and business
operations to gain a more holistic and accurate view.

4. Building a porfolio:
PNJ

Average monthly rate of

0.25%
return

Variance
0.016

Standard Diviation
0.128

Covar (PNJ,VNIndex)
0.005

Var(VNIndex)
0.005

Beta(PNJ)

12
 0.963

MWG

Average monthly rate of -

return 0.66%

Variance
0.020

Standard Diviation
0.143

Covar (MWG,VNIndex)
0.006

Var(VNIndex)
0.005

Beta(MWG)
1.137

Covar(PNJ,MWG)
0.006

Create an investment portfolio:

Return of
Portfolio Weighting Risk of portfolio
portfolio

W(PNJ) x Return
[W(PNJ)^2] x [Var(PNJ)] + [W(MWG)^2] x
(PNJ) +
PNJ MWG [Var(MWG)] + 2 x [W(PNJ)] x [W(MWG)] x [Cov
W(MWG) x
(PNJ;MWG)]
Return (MWG)

1 50% 50% -0.20% 1.23%

2 60% 40% -0.11% 1.21%

3 40% 60% -0.30% 1.29%

13
Analysis:

Based on the above table, it can be seen that the Beta coefficients of the two stock codes differ.
Specifically, with PNJ's Beta coefficient < 1, it shows that the price fluctuation of PNJ's stock is
lower than the market fluctuation. Specifically, when the market increases by 1%, PNJ tends to
increase by 0.963%. Therefore, PNJ is considered a stock with low systematic risk, suitable for
investors who prefer stability.

As for the beta coefficient of 1.137, it shows that MWG has a higher volatility than the overall
market. Therefore, MWG is considered a high-yield stock, but it still has risks.

PNJ's average monthly profit margin is positive (0.25%), demonstrating the profitability of PNJ's
business and indicating that PNJ's stock price tends to rise. In contrast, MWG's average monthly
profit margin is negative (-0.66%), indicating that for every 100 dong of revenue, -0.66 dong of
profit is recorded, suggesting that MWG's revenue is unstable.

Expected return: Portfolio 2 has the highest expected return at -0.11%. Portfolio risk: Portfolio 2
has the lowest risk at 1.21%.

Investment options:

Based on the above criteria and the investment principle of "balancing risk and return", it can be

seen that the optimal choice is to invest in Portfolio 2.

14
 Reference
+ Báo cáo tình hình tài chính PNJ năm 2018, 2019, 2020, 2021, 2022

Báo cáo tài chính (pnj.com.vn)

+ Công ty cỏ phần Vàng bạc đá quý Phú Nhuận

PNJ: CTCP Vàng bạc Đá quý Phú Nhuận (HOSE) (cafef.vn)

+ Báo cáo phân tích SSI

bao_cao_phan_tich_ssi_(22_07_2022).pdf (pnj.io)

+ Công ty cỏ phần Vàng bạc đá quý Phú Nhuận

PNJ: CTCP Vàng bạc Đá quý Phú Nhuận - PNJ | VietstockFinance

+ Báo cáo thường niên PNJ năm 2018, 2019, 2020, 2021, 2022

Báo cáo thường niên (pnj.com.vn)

15