Pnj’s finance group assignment fin202 pnj company, formerly known as jewelry store, phu nhuan district

Group Assignment FIN202 TEAM Digital Marketing (mkt308) PNJ’S FINANCE Group Assignment – FIN202 GROUP MEMBERS: NGUYEN SON TUNG – HS120529 LE THI MY DUYEN – HS150531 LO DUY TUNG – HS153072 DINH PHUONG NGA – HS150244 DAO MANH HIEU – HS153198 CLASS: IB1602 LECTURER: HOANG VAN TUONG 22nd October 2021 TABLE OF CONTENTS Introduction………………………………………………………2 Financial statements……………………………………….4 Financial ratios…………………………………………………8 3.1 Liquidity ratios……………………………………………………… 3.2 Efficiency ratios………………………………………………10 3.3 Leverage ratios………………………………………………11 3.4 Profitability ratios…………………………………………….14 Forecast………………………………………………………… 16 References………………………………………………………17 1|Page Introduction PNJ Company, formerly known as Jewelry Store, Phu Nhuan District, was established on April 28, 1988 Phu Nhuan Jewelry Joint Stock Company is a Vietnamese joint-stock company This company specializes in manufacturing and trading gold, silver, gemstone jewelry, business gifts, fashion accessories, souvenirs, watches, buying and selling gold bars, providing diamond and stone testing services precious metals, precious metals, and real estate business In 2010, PNJ was ranked 16th by Plimsoll in the top 500 largest jewelry companies in the world Vision: To become Asia's leading company in jewelry making and retailing beauty products, reaching out to the world Mission: PNJ is constantly innovating to bring exquisite products with real value to honor the beauty of people and life Core Values: INTEGRITY FOR PERSONALITY CONTINUOUSLY HOLLOW THE GOAL INTERESTED IN DEVELOPMENT DELICIOUS FOR CUSTOMERS DIFFERENT CREATION PENSION Over 33 years of establishment and development, PNJ has achieved many remarkable achievements: being in the Top 500 leading retailers in the Asia Pacific, Asia Pacific Quality Award, National Brand, Top 500 100 Best Working Environments in Vietnam, Best Working Environments in Asia, Vietnam HR Awards 2020… The company's main market share is through traditional retail stores, which still account for the majority of the market, in addition, the company also sells products on e-commerce sites such as Shopee, Lazada, or Genuine website The three largest companies in this gold sector include PNJ, DOJI, and SJC, all with over 20 years of experience DOJI and SJC are two competitors, but each side finds its own strengths to develop But in the 2|Page jewelry segment, PNJ's notable competitor is the one-year-old brand Precita, which currently has nearly 20 stores To be able to develop and grow as it is today, PNJ has been having strategic projects PNJ has been implementing the new enterprise resource planning project - ERP, which was initially started on April 5, 2018, in Ho Chi Minh City with the most important component of the Digital Transformation strategy development strategy direction in the period of 2018 - 2022 and a vision to 2030, in which, building a technology infrastructure foundation and digitalizing business operations strategy (Digital Transformation) is an important pillar Competitors: The world jewelry industry is already familiar with famous brands such as Tiffany, Swarovski or Jacobs & Co As for Vietnam, the market is "overpopulated" by "emerging" brands such as Shimmer or FloralPunk However, these are niche brands and are not highly competitive The common point of these types is outsourcing or importing goods from China or Thailand with pre-defined designs on the market Growth in revenue - profit or even growth in business size compared to the past is hardly a good indicator for understanding future sustainability The core problem lies in the difference so that it is difficult or impossible for competitors in the industry to "imitate" Currently, the jewelry industry is divided into different segments with low-end, midend and high-end With thousands of large and small brands, the market is "saturated with brands" with names like PNJ, Doji, SJC, Bao Tin Minh Chau, Phu Quy and smaller brands like Shimmer and FloralPunk Brands began to compete fiercely in this area, as shown by the rapid growth of jewelry stores There are core factors of a jewelry retail business that help affirm competitive advantages (1) Production and supply management capacity, (2) Strong distribution system and (3) Supplier position Supreme Factor (1) here includes a modern factory with outstanding capacity and production and supply management capacity In addition, factor (1) also includes the design team and skilled labor Owning a modern production line, a design team of 50 members and a force of artisans and jewelers of more than 1,000 people, every year, PNJ launches more than million products to the market From gold and silver jewelry to precious stones and diamonds The current capacity of PNJ is - tons/year, only running 50 - 75% of the total supply capacity With a maximum capacity of tons/year, PNJ can completely supply to the market an additional 1.3 - 1.5 million products in the next 1-3 years, bringing the total supply capacity to over million products/year In terms of the entire market, PNJ's supply capacity far exceeds that of competitors in the same segment, ranking in the Top 10 factories with the largest 3|Page capacity in Asia This is the foundation for PNJ to reduce production costs per finished product and overwhelm the supply volume of competitors before the whole industry "moves" to increase capacity Above all, when demand explodes, PNJ can completely increase capacity to reach the ceiling level or further increase capacity to take the lead in the industry Meanwhile, factor (2) is a core thing when the retail system must be able to distribute to the widest customers As of January 2021, PNJ currently has 339 stores and plans to open another 40-50 stores in the period 2020-2025 as well as expand the e-commerce segment Broadly speaking, PNJ's store system is currently much superior to its nearest competitors, Bao Tin Minh Chau (BTMC) and DOJI With 200 retail stores, BTMC is the most potential competitor that can threaten PNJ right now However, the market situation was quite clear with BTMC only having a distribution system from Quang Tri, while PNJ had more than 80% of stores in the South Further, when jewelry demand in Vietnam reaches the Asian average, there will be great room for both giants to increase their market share through strong distribution and supply chains Going further, factor (3) is an important factor determining the success or failure of factors (1) and (2) The relationship between these three factors is complementary and intimate Factor (3) focuses on the ability to control input costs and the ability to determine selling prices However, it is not Doji or SJC that is the competitor that puts pressure on PNJ even though this brand has 13 stores Unlike Doji or SJC, both PNJ and Diamond World are focused on innovation and retail promotion The concentration of this market is still low, because more than 70% of the market belongs to small stores A big piece of cake for two businesses to exploit, the opportunity will be divided equally if the business goes in the right direction If PNJ has a strong advantage in the system, the retail jewelry firms will be more competitive in price According to a survey on fashion consumption habits by Q&Me at the end of 2017, price is the most important factor in making purchasing decisions, accounting for 23% According to a Nielsen study, the group of young people will reach 40 million people in the next decade and spend about 100 billion VND per year Millennials target this customer, accounting for about 35% of Vietnam's population Financial statement analysis Data calculated by the excel file below 4|Page PHUNHUAN JEWELRY JOINTSTOCK COMPANY As at 31 December As at 31 December 2018 ASSETS Currentassets Cash Cashequivalents Held-to-maturity investments Short-term trade accounts receivables Short-term prepayments to suppliers Other short-term receivables Deficits in assets awaiting solution Inventories Inventories Othershort-termassets Short-term prepaid expenses Value added tax deductibles Taxes & otherreceivables from theStatebudget Non-currentassets Other long-term receivables Fixedassets Tangible fixed assets Historical cost Accumulated depreciation Intangible fixed assets Historical cost Accumulated amortization Long-term construction in progress Equity investments in other entities Provision for long-term investments Otherlong-termassets Long-term prepaid expenses Deferred income taxassets TOTAL ASSETS 5|Page 2019 2017 2018 2019 LIABILITIES & OWNERS' EQUITY 100 3,896,141,901,410 5,405,256,600,641 110 175,208,552,187 206,721,179,629 95,224,439,008 111 112 111,158,552,187 64,050,000,000 206,721,179,629 95,224,439,008 7,333,364,485,251 - - 120 160,065,000,000 - 123 160,065,000,000 - - 130 84,622,464,067 155,196,257,825 129,688,313,476 131 132 136 139 39,946,216,659 33,682,107,963 10,858,761,425 135,378,020 57,664,060,443 57,981,679,202 39,159,008,338 391,509,842 48,292,876,716 74,867,455,343 5,287,941,028 1,240,040,389 140 3,401,959,226,624 4,968,145,942,990 7,030,420,371,216 141 3,401,959,226,624 4,968,145,942,990 7,030,420,371,216 150 74,286,658,532 75,193,220,197 78,031,361,551 151 152 153 69,117,536,788 28,174,789 5,140,946,955 68,191,416,708 625,511,019 6,376,292,470 71,633,378,895 6,306,692,920 91,289,736 200 675,158,254,081 1,032,638,955,963 1,269,599,936,565 210 42,787,737,738 57,498,444,869 70,721,623,109 216 42,787,737,738 57,498,444,869 70,721,623,109 220 487,243,774,697 719,287,274,744 923,870,354,474 221 222 223 227 228 229 205,748,326,607 396,615,581,684 (190,867,255,077) 281,495,448,090 286,740,907,873 (5,245,459,783) 225,960,569,846 454,178,423,940 (228,217,854,094) 493,326,704,898 499,937,407,873 (6,610,702,975) 263,827,234,353 534,818,699,342 (270,991,464,989) 660,043,120,121 679,619,883,005 (19,576,762,884) 240 9,665,078,966 70,822,681,154 28,457,398,434 242 9,665,078,966 70,822,681,154 LIABILITIES 300 1,542,697,241,029 2,692,822,128,700 4,025,698,610,469 Current liabilities 310 1,488,758,034,029 2,677,317,785,700 4,017,860,824,469 311 312 313 314 315 319 320 322 278,898,463,294 37,773,098,354 117,206,887,902 99,466,563,099 4,629,017,766 52,071,661,615 846,278,850,200 52,433,491,799 342,676,925,196 82,798,544,221 153,579,308,096 228,337,052,181 10,833,940,595 237,629,562,960 1,558,482,498,026 62,979,954,425 690,808,185,195 95,353,052,369 192,682,671,178 222,296,091,737 45,877,630,688 69,257,739,996 2,610,902,622,222 90,682,831,084 330 53,939,207,000 15,504,343,000 7,837,786,000 337 338 342 628,026,000 46,234,864,000 7,076,317,000 628,026,000 7,800,000,000 7,076,317,000 476,006,000 3,700,000,000 3,661,780,000 OWNERS' EQUITY 400 3,028,602,914,462 3,745,073,427,904 4,577,265,811,347 Capital&reserves 410 3,028,602,914,462 3,745,073,427,904 4,577,265,811,347 411 412 415 418 421 412a 421b 1,081,020,340,000 876,761,282,458 (7,090,000) 220,087,556,918 850,740,825,086 233,985,702,026 616,755,123,060 1,670,029,820,000 925,397,862,458 (7,090,000) 265,087,556,918 884,565,278,528 98,780,546,381 785,784,732,147 440 4,571,300,155,491 6,437,895,556,604 Short-term trade accounts payables Short-term prepayments from customers Taxes & otherpayables from theState budget Payables to employees Short-term accruedexpenses Other short-term payables Short-term loans Bonus & welfare funds Non-current liabilities Other long-term payables Long-term loans Provision for long-term liabilities Owners' capital Share premium Treasury shares Investment & development fund Retained earnings - Retainedearnings accumulated to the prioryear end - Retainedearnings of the current year TOTAL LIABILITIES & OWNERS' EQUITY 28,457,398,434 250 - - - 253 254 395,271,613,400 (395,271,613,400) 395,271,613,400 (395,271,613,400) 395,271,613,400 (395,271,613,400) 260 135,461,662,680 185,030,555,196 246,550,560,548 261 262 53,968,320,576 81,493,342,104 99,678,730,358 85,351,824,838 158,318,980,481 88,231,580,067 270 4,571,300,155,491 6,437,895,556,604 8,602,964,421,816 2,252,935,850,000 968,074,112,458 (2,101,090,000) 313,083,556,918 1,045,273,381,971 29,482,225,528 1,015,791,156,443 8,602,964,421,816 PHUNHUAN JEWELRY JOINTSTOCK COMPANY Year ended 31 December 2017 Netsales Grossprofit Financial income Financial expenses Including: Interest expense Selling expenses General and administration expenses Netoperatingprofit(EBIT) Other income Other expenses Resultsofotheractivities Net income before tax Business incometax-current Business incometax-deferred Net income after tax 14,571,135,744,850 (9,064,872,939,048) (11,792,052,183,391) 1,911,963,950,916 2,779,083,561,459 8,794,872,100 (56,475,629,564) (54,981,032,499) (774,978,169,326) (187,936,351,549) 6,846,027,091 (66,345,864,211) (61,109,042,390) (1,170,069,069,426) (345,868,153,940) 901,368,672,577 1,203,646,500,973 7,394,867,935 (1,384,144,655) 4,637,809,502 (2,734,037,354) 6,010,723,280 1,903,772,148 907,379,395,857 1,205,550,273,121 (182,038,883,247) (249,485,408,708) (484,064,550) 3,858,482,734 724,856,448,060 959,923,347,147 724,856,448,060 959,923,347,147 Atributable to: Earningspershare Diluted earnings pershare 6|Page 6,434 6,481 6,434 6,481 17,000,681,080,523 2,879,755,229 PHUNHUAN JEWELRY JOINTSTOCK COMPANY (Indirect method) Year ended 31 December 2018 1,205,550,273,121 42,101,648,087 (169,041,343) (7,406,944,577) 61,109,042,390 (86,037,746,014) (1,566,186,716,366) 412,203,203,546 (44,784,289,702) (60,443,657,529) (231,958,086,112) (26,117,591,079) (302,139,905,578) (336,378,415,370) 1,075,665,048 160,065,000,000 6,331,279,529 (168,906,470,793) 97,273,160,000 4,320,772,043,080 (3,647,003,259,254) (268,371,812,300) 502,670,131,526 31,623,755,155 175,208,552,187 (111,127,713) 206,721,179,629 7|Page Financial ratios 3.1 Liquidity ratios Table of the liquidity ratios of PNJ for the period of 2017-2019 Value Cash ratio Current ratio Quick ratio 2017 0.12 2.62 0.33 with2017 2018 0.08 2.02 0.16 with2018 2019 Absolute(+/-) Absolute(+/-) 0.02 (0.04) (0.05) 1.83 (0.60) (0.19) 0.08 (0.17) (0.09) Cash ratio is the ratio to measure the amount of money currently available at the company to cover all short-term liabilities This ratio immediately indicates the financial crisis of the company Calculating by the formula : Cash ratio = Cash & cash equivalents Current liabilities In 2017, the cash ratio of the firm was 0.12, in 2018 decreased by 0.04 to 0.08 and in 2019 continued to decrease 0.05 to 0.02 This shows that the company's ability to pay cash is declining Current ratio is the ratio to measure the amount of money currently available at the company to cover all short-term liabilities The current ratio shows the correlation between current assets and current liabilities, is a widely used measure The current ratio indicates how many short-term assets each company uses for its short-term debt Calculating by the formula: Current ratio = Current assets Short -term debt In 2017, this index was 2.62 By 2018, it has decreased by 0.6 to 2.02 The year 2019 continued to decrease by 0.19 compared to 2018, to 1.83 The corporate current ratio in three years, though decreasing, is greater than 1, proving that the company's short-term assets are capable of paying short-term debts and this will increase the company's reputation with creditors 8|Page Quick ratio illustrates the firm's true ability to pay its debts against shortterm debts However, in reality, many short-term assets have lower liquidity than inventories, so this ratio is not effective Calculating by the formula: Quick ratio = Curren tassets − Inventories Short -term debt The company's quick solvency in 2017 was 0.33 and decreased from 0.17 to 0.17 in 2018 By 2019, this index continues to decrease by 0.09 to only 0.08 PNJ's LIQUIDITY RATIOS In three year 2017 - 2018 - 2019 2.8 2.62 2.4 2.02 1.83 1.6 1.2 0.8 0.33 0.4 0.16 0.12 0.08 2017 2018 0.08 0.02 Cash ratio 2019 Current ratio Quick ratio In general, liquidity indices decreased continuously in 2018 and 2019, showing that the liquidity of PNJ's short-term debts is going down In particular, the two ratios of Cash ratio and Quick ratio are very low (below 1), indicating that enterprises are in a quite dangerous debt situation due to the lack of ability to meet short-term obligations with The most liquid asset However, the current ratio is still kept at steep high (1.83), showing that the company is still in a good liquidity position due to its large inventory, which is suitable for the characteristics of its business, jewelry 9|Page 3.2 Efficiency ratios Table of the efficiency ratios of PNJ for the period of 2017-2019 Value Inventory turnover Total assets turnover Accounts receivable turnover ay's sales in inventory (days) Day's sales outstanding (days) 2017 2.66 2.40 274.79 136.98 1.33 with2017 2018 2.37 2.26 252.69 153.78 1.44 with2018 2019 Absolute(+/-) Absolute(+/-) 1.93 (0.29) (0.45) 1.98 (0.14) (0.29) 352.03 (22.10) 99.34 189.52 16.80 35.74 1.04 0.12 (0.41) Inventory turnover indicates the relationship between inventory and cost of goods sold in a period Used to evaluate the effectiveness of a company's inventory management This index shows the average number of inventory rotation how many periods to generate revenue Calculating by the formula: Inventory turnover = Revenue Average inventory The inventory turnover of the company decreased continuously for over years In 2017, this index was 2.66 to 2018, down to 2.37 and in 2019 to only 1.93.This shows that the company is not effectively managing the inventories Low inventory turnover causes the costs of inventories to increase, which reduces the company's revenue Total assets turnover measures the effectiveness of assets using regardless of whether they are long-term or short-term assets This ratio indicates how much revenue each asset generates Calculating by the formula: Total assets turnover = Revenue Average of total assets The total assets turnover of the company decreased gradually over years from 2017 to 2019 In 2017, with a single asset generated 8.52 times of revenue, in 2011, it was only 7.1 times and in 2012, it was only generated 2.49 times This shows that the company has not used assets effectively and showed signs of weakening 10 | P a g e Accounts receivable turnover ratio is used to quantify the company's effectiveness in collecting accounts receivable or debts from customers The ratio shows how well a company uses and manages credit to its customers and how quickly short-term debt is collected or paid off Calculating by the formula: Account receivable turnover = Net sales Accounts receivable The company's Day's sales outstanding in 2017 was 1.33 and increased by 0.12 to 1.44 in 2018 By 2019, this index decreased by 0.41 to 1.04 It can be seen that this index of PNJ has had an unstable change Overall, the company's efficiency ratios show that the ability to use the company's assets to generate income is on the decline Because efficiency ratio is important because it is directly related to profitability, PNJ needs to improve the efficiency of its business operations in order to obtain a better profit 3.3 Leverage ratios Table of the leverage ratios of PNJ for the period of 2017-2019 Value Total debt ratio Debt-to-equity ratio Equity multiplier 2017 0.34 0.51 1.51 with2017 2018 0.42 0.72 1.72 with2018 2019 Absolute(+/-) Absolute(+/-) 0.47 0.08 0.05 0.88 0.21 0.16 1.88 0.21 0.16 The total debt ratio is the ratio to measure the extent to which the firm finances its assets from sources other than the stockholders The higher the total debt ratio, the more debt the firm has in its capital structure (Robert, David, & Thomas, 2011) Calculating by the formula: Total debt ratio = Total debt Total assets In 2017, the total debt of PNJ was 0.34, in 2018 increased by 0.08 to 0.42 and in 2019 continued to increase by 0.05 to 0.47 In general, PNJ’s total debt 11 | P a g e ratio in years was at the allowed level, not exceeding 0.5, which means that most of the company’s assets are financed through equity The debt-to-equity ratio is the ratio to indicate the relative proportion of the entity’s equity and debt used to finance an entity’s assets The debt-to-equity ratio is one of the important financial ratios and used as a customary for judging a company’s financial standing Calculating by the formula: Debt / Equityratio = Total debt Total equity In 2017, this ratio was 0.51, it means for each VND in equity, the firm has 51 cents in leverage The index went up by 0.21 from 0.51 to 0.72 and reached a peak at 0.88 in 2019 Comparing to the industry average, the debt to equity ratio is not high This shows that the firm failed to depend upon borrowing for financial activities Equity multiplier is the ratio to show the number of assets that the firm has for every dollar of equity (Robert, David, & Thomas, 2011) In other words, equity multiplier is a method of evaluating a company’s ability to use its debt for financing its assets Calculating by the formula: Equity multiplier = Total assets Total shareholder equity Overall, the equity multiplier increased steadily over years In 2017, this index was 1.51 and increased by 0.21 to 1.72 in 2018 By 2019, this index continued to increase by 0.16 to 1.88 The increase of PNJ’s multiplier indicates that a larger portion of the company’s total assets is derived from debt 12 | P a g e PNJ's LEVERAGE RATIOS In three year 2017 - 2018 - 2019 1.88 1.72 1.8 1.6 1.51 1.4 1.2 0.88 0.72 0.8 0.6 0.51 0.47 0.42 0.4 0.34 0.2 2017 2018 Total debt ratio 2019 Debt-to-Equity ratio Equity mutiplier In general, the leverage ratios have increased for years, showing that PNJ is able to meet its debts The two indexes of total debt ratio and debt-to-equity ratio tends to increase but still remain below 1, which shows that PNJ's financial sustainability over years is quite stable For equity multiplier, this ratio is kept at a high level, showing more debt-financed assets than equity In other words, PNJ is considered to be more leveraged and riskier for investors and creditors (when PNJ's assets are mainly financed by debt), which also means that current investors actually own less of PNJ’s assets than current creditors 13 | P a g e 3.4 Profitability ratios Table of the profitability ratios of PNJ for the period of 2017-2019 Value Gross profit margin Operating profit margin Net profit margin ROA ROE EROA 2017 17.42% 8.21% 6.60% 15.86% 23.93% 19.72% with2017 2018 19.07% 8.26% 6.59% 14.91% 25.63% 18.70% with2018 2019 Absolute(+/-) Absolute(+/-) 20.36% 1.65% 1.29% 8.86% 0.05% 0.60% 7.02% -0.02% 0.43% 13.88% -0.95% -1.03% 26.08% 1.70% 0.45% 17.51% -1.02% -1.19% Gross profit margin is an indicator used to assess the company's business model and financial health by revealing the remaining amount from sales after subtracting the cost of goods sold Calculating by the formula: Gross profit margin = Net sales − Cost of goods sold Total revenue This index of PNJ increased by 1.65% between 2017 and 2018; however, it will only increase by 1.29% in 2019 Profit margins have been reduced Operating profit margin indicates how many co-profits can be generated before taxes and interest Calculating by the formula: Operating profit margin = Operating profit Total revenue A high operating profit margin means that cost management is effective or that revenue increases faster than operating costs Managers need to find the reasons for the high or low operating profit so that they can determine whether the business is operating effectively or if the selling price of products has increased faster or slower than the cost of capital The company's profits increased steadily within years This proves that PNJ managers have succeeded in making profits from the operation of the business Net profit margin reflects the net income (after-tax profit) of a business compared to sales Calculating by the formula: Net profit margin = 14 | P a g e Profit after tax Total revenue In 2018, it decreased by 0.02%, it indicates that the enterprise is having problems hindering the potential profitability due to unnecessary costs, productivity and management issues But it increased again in 2019 at 0.43% Return on assets (ROA) is an indicator that shows the correlation between the profitability of a company and its assets ROA will tell us the effectiveness of the company in using assets to make a profit Calculating by the formula: ROA = Net income Total assets The return on equity (ROE) reflects the net income on equity of shareholders (or on the tangible net asset value) Calculating by the formula: ROE = Net income Total equity PNJ's PROFITABILITY RATIOS In three year 2017 - 2018 - 2019 30.00% 25.00% Gross profit margin Operating profit margin Net profit margin ROA ROE EROA 20.00% 15.00% 10.00% 5.00% 0.00% 2017 2018 2019 Accordingly, in 2019, PNJ recorded net revenue of VND 17,000 billion, up 16.7%, significantly lower than the increase of 2018 and 2017 (respectively 32.7% and 28.2%) However, thanks to the improved gross profit margin, gross profit growth was higher than net revenue growth, reaching 24.5%, though still 15 | P a g e significantly lower than the previous two years Financial expenses during the year increased by 79.1%, while selling expenses increased by 16.5%, and administrative expenses increased by 38.5% Vietnam Finance's calculations show that selling and administrative expenses accounted for 10.8% of PNJ's net revenue in 2019, a slight increase compared to 2018, and have been increasing continuously since 2012 At the end of the year, PNJ achieved a profit before tax of VND 1,502 billion, an increase of 24.6% compared to 2018, although it is high compared to the common ground but still lower than the increase of years earlier By the end of December 31, 2019, PNJ's total assets increased by 33.6% compared to the beginning of the year, reaching over VND 8,600 billion Notably, inventories increased by 41.3% after one year, accounting for 81.6% of total assets - the highest according to data from 2012 to present During the year, the equity of "jewelry queen" increased by 22.1% to VND 4,574 billion Total debt growth (both short-term and long-term) is 66.9% Debt currently accounts for 30.4% of PNJ's total capital, while liabilities account for 46.8% Return on total assets (ROA) and equity (ROE) are respectively 13.8% (lower than 2018 and 2017) and 26% (higher than 2018 and 2017) Forecast Last year, PNJ opened 29 new Gold stores and closed 36 stores (mostly PNJ Silver) in order to restructure the location of new stores and have better rental costs This process makes an important contribution to achieving the goal of optimizing revenue per store and greatly contributes to the increase in the proportion of retail revenue, accounting for 59.7% of the company's total annual revenue reached the highest level in recent years To increase resources, in 2021 PNJ also has a plan to issue 15 million individual shares, equivalent to 6.6% of outstanding shares The mobilized capital is to expand the retail network, increase production capacity, supply and digital transformation The amount collected from this issuance can reach 1,500 billion dong 16 | P a g e So far, with major challenges such as adverse geopolitical events of the world, the retail industry will begin to slow down, affect trade wars between major powers, and recently the nCoV epidemic (Covid-19) will have many negative effects on the global economy and Vietnam In that context, the forecast of the firm’s performance in the next years will still have good growth Specifically, the company's net revenue is likely to grow by 12% per year, gross profit is 15%, and profit after tax is about 13% References [1] Phu Nhuan Jewelry Joint Stock Company, (2018, March 20) Audited Consolidated Financial Statements 2017 Retrieved 20 October 2021, from https://www.pnj.com.vn/images/quan-he-co-dong/7c-AuditedConsolidatedfinancial-statements-2017Signedv2.pdf [2] Phu Nhuan Jewelry Joint Stock Company, (2018, March 15) Consolidated financial statements for the year ended 31 December 2018 Retrieved 20 October 2021, from https://www.pnj.com.vn/images/quan-hecodong/6cBCTC_nam_2018_da_duoc_kiem_toan_boi_PwC_Hop_nhat_ ENGLISH_Signed.pdf [3] Phu Nhuan Jewelry Joint Stock Company, (2020, March 6) Audited Consolidated Financial Statements 2019 Retrieved 20 October 2021, from https://www.pnj.com.vn/images/quan-he-codong/2020/11cBCTC_nam_2019_da_duoc_kiem_toan_boi_PwC_Hop_n hat.pdf [4] Phu Nhuan Jewelry Joint Stock Company, (2018, March 26) Report of Board of Management Summary of manufacturing – Business performance in 2017 Retrieved 20 October 2021, from https://www.pnj.com.vn/images/quan-heco-dong/11eReport_of_Board_of_Management.pdf 17 | P a g e ... Forecast………………………………………………………… 16 References………………………………………………………17 1|Page Introduction PNJ Company, formerly known as Jewelry Store, Phu Nhuan District, was established on April 28, 1988 Phu Nhuan. . .PNJ? ??S FINANCE Group Assignment – FIN202 GROUP MEMBERS: NGUYEN SON TUNG – HS120529 LE THI MY DUYEN – HS150531 LO DUY TUNG – HS153072 DINH PHUONG NGA – HS150244 DAO MANH HIEU – HS153198 CLASS:... Data calculated by the excel file below 4|Page PHUNHUAN JEWELRY JOINTSTOCK COMPANY As at 31 December As at 31 December 2018 ASSETS Currentassets Cash Cashequivalents Held-to-maturity investments