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PNJ [BUY +31.9%] - Store expansion speeds up on new capital - Update

Company Research

21 Jul 2017

We reiterate our BUY rating on PNJ with 32% total stock return, inclusive of 2% dividend yield. We increase our TP by 9% to VND126,000 thanks to a 7% upward revision in 2017F NPAT and roll-over effect, offset by a 0.8 ppt expansion in WACC and a higher diluted share count. Valuation looks appealing with a forecast three-year core PEG of 0.6 based on current price. Our 2017 NPAT forecast is revised up primarily due to a slower-than-expected ramp-up in selling expenses and interest
Tags: PNJ

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