Phu Nhuan Jewelry JSC targets a 15 percent rise in post-tax profits this year to VND1.23 trillion ($53.4 million). 

A customer views products at a PNJ store in Ho Chi Minh City. Photo courtesy of PNJ.

At its annual general meeting Saturday, it also announced a revenue target of VND21 trillion, up 20 percent.

But Phu Hung Securities Corporation has forecast revenues of VND18.4 trillion and profits of VND1.09 trillion, explaining that the volatility in gold prices and consumers’ increasing preference for imported jewelry would keep numbers down.

BSC Securities expected the jewelry industry to recover this year, and forecast PNJ a 22 percent rise in profits to VND1.3 trillion on revenues of VND19.8 trillion (up 13 percent).

PNJ chairwoman Cao Thi Ngoc Dung said the targets are achievable since the pandemic would be contained this year and the economy would recover.

The company aims to open 40-45 stores in 2021 and buy machinery for its jewelry workshops.

Its CEO, Le Tri Thong, said demand for jewelry among young people in major cities is high, and this would boost the company’s revenues and profits. Smaller cities and rural areas too however show promise, he said.

Last year, revenues edged up 3 percent to VND17.5 trillion, but Thong pointed out though the growth was lower than the average of 32 percent in recent years, the fact that PNJ managed to grow its revenues amid the pandemic was a success for it.

It opened 29 stores and closed 36 existing ones in 2020, most of them were silver jewelry stores in shopping malls with modest business and high rentals.