PNJ shares lose over 50% in July after diamond smuggling scandal erases about 16.4 trn VND market value

Vietnam's Phu Nhuan Jewelry Joint Stock Company (PNJ) saw its share price tumble from 63,100 VND to 31,000 VND between 2 July and 31 July, a decline of 50.9%. The market capitalisation fell from roughly 32,290 trn VND to 15,863 trn VND, wiping out about 16.4 trn VND in value.

The Q2 consolidated financial report disclosed a post‑tax loss of 283 bn VND, contrasting with a profit of 437 bn VND a year earlier. The loss stemmed not from core business weakness but from a provision of about 865.5 bn VND linked to a diamond‑smuggling case involving 28,000 diamonds. The former director of PNJ’s subsidiary P‑Lab was prosecuted, prompting the company to set aside a large reserve and see management costs rise 5.2 times to 1,063 bn VND. PNJ said the precautionary provision does not reflect a decline in its core operations.