Gold price today April 2, 2024 sets new peak, SJC increases 'top-up' in buying direction

The world gold price today, April 2, 2024, continues to increase sharply, heading towards new records. SJC 9999 gold bars increased by 500,000 VND for buying, remaining unchanged at 81.1 million VND/tael for selling.

The Money Family

Ms. Cao Thi Ngoc Dung (born in 1957) is a businesswoman originally from Quang Ngai. She is currently the Chairwoman of Phu Nhuan Jewelry Joint Stock Company (PNJ) - one of the fastest growing enterprises in Vietnam. Ms. Dung is among the top super-rich people in Vietnam.

Ms. Cao Thi Ngoc Dung is the wife of Mr. Tran Phuong Binh (former Vice Chairman of the Board of Directors, former General Director of DongABank). She was also the Chairman of the Board of Directors of DongA Commercial Joint Stock Bank (DongABank - DAF) from 1992 to 1997.

Since 2004, Ms. Cao Thi Ngoc Dung has been the Chairwoman of Phu Nhuan Jewelry Joint Stock Company and also a shareholder of this enterprise. For a time, Ms. Dung held the position of General Director of PNJ, but then she transferred the position to Mr. Le Tri Thong, the brother of former CEO of Facebook Vietnam Le Diep Kieu Trang (Christy Le).

By the end of 2023, Ms. Dung held nearly 8.9 million PNJ shares (equivalent to 2.71%), worth nearly VND 852 billion as of March 27, and nearly 9.7 million DongABank shares, but were not counted because this bank has been under special control for the past 10 years and was recommended to be forced to transfer to another bank because DAF has negative equity.

As of the end of the first quarter of 2024, PNJ's stock price was at VND97,500 and its market capitalization was over VND32,600 billion (about USD1.3 billion). This is a very fast-growing enterprise, with a chain of gold and silver jewelry stores exceeding 400 locations.

Also at PNJ, Ms. Dung's daughter - Tran Phuong Ngoc Thao is Vice Chairman of the Board of Directors (since June 2020) - holding nearly 7.9 million PNJ shares, equivalent to nearly 2.4% of the company's capital.

Two other daughters, Tran Phuong Ngoc Ha and Tran Phuong Ngoc Giao, hold 12.27 million (3.74%) and more than 9.6 million PNJ shares (2.95%) respectively.

Ms. Tran Thi Mon - Ms. Dung's mother - also holds nearly 719 thousand PNJ shares.

A younger brother of Ms. Dung, Cao Ngoc Duy, holds more than 9 million (2.75%), and her younger sister Cao Thi Ngoc Hong holds more than 880,000 PNJ shares,... In addition, Ms. Dung's other siblings, Cao Ngoc Hiep, Cao Ngoc Huy, Cao Thi Ngoc Tam, Cao Thi Thuy,... also hold shares at PNJ.

In total, Ms. Cao Thi Ngoc Dung's extended family currently holds about 15% of PNJ shares.

In 2016, Ms. Cao Thi Ngoc Dung, along with Ms. Nguyen Thi Phuong Thao (CEO Vietjet) and Ms. Thai Huong (Chairwoman TH True Milk) were three Vietnamese women in the list of 50 most powerful businesswomen in Asia by Forbes Magazine.

Ms. Cao Thi Ngoc Dung's business is constantly expanding, owning the leading gold and jewelry retail chain in the country. By 2023, PNJ will have 57 branches, about 7,670 employees and by the end of February 2024, there will be 402 stores across Vietnam.

PNJ gold and silver empire breaks out

It can be seen that Ms. Cao Thi Ngoc Dung led her extended family to build a billion-dollar gold and silver empire, despite being entangled in a large amount of money of nearly 400 billion VND in an investment at DongABank.

In 1992, PNJ was one of the founding shareholders of DongABank, with 40% ownership of the bank's capital.

Mr. Binh’s case once caused concern among many PNJ shareholders about the relationship between PNJ and DongABank. However, at the 2018 General Meeting of Shareholders, Ms. Dung affirmed that PNJ was not Mr. Tran Phuong Binh’s “backyard” and was not related to DAF’s issues. Ms. Dung said that if PNJ was involved, the company would not have been able to stand firm until now.

Another turning point for PNJ was in 2016, when the company boldly transformed and promoted its business model from gold bars to retail gold jewelry. Thanks to that, PNJ's revenue skyrocketed. In 2016, PNJ's revenue reached more than VND8,600 billion, although only about 40% compared to Saigon Jewelry Company (SJC), but its gross profit reached more than VND1,400 billion, 7 times higher than SJC.

In the following years, PNJ's revenue and after-tax profit continued to increase sharply. Revenue exceeded VND11,000 billion in 2017, then approached VND20,000 billion in 2021 before reaching more than VND34,200 billion in 2022 and reaching nearly VND33,500 billion in 2023.

PNJ's profit exceeded VND 1,000 billion in 2019 (nearly VND 1,200 billion) and reached VND 1,810 billion in 2022, then continued to increase to VND 1,971 billion in 2023.

PNJ's revenue and profit growth rate is considered very impressive.

According to the latest report, in the first two months of 2024, PNJ achieved VND 550 billion in profit after tax and nearly VND 8,500 billion in net revenue. PNJ's jewelry revenue accounts for 65.8% of the total structure. Retail sales maintained growth thanks to an increase in new customers, expansion of the customer network, and increased return rate of old customers.

Despite having good business results over the past years, the business of Vietnam's number 1 female gold tycoon Cao Thi Ngoc Dung also encountered some problems. PNJ shares were removed from the VN30 pillar stocks basket on the HOSE.

Many recent reports assess the retail industry in general as not as positive as before due to low consumer demand. Retail giants such as Mobile World (MWG), Masan (MSN), DigiWorld (DGW)... are all facing difficulties.

But for PNJ, this business has an advantage thanks to the trend of people still buying gold while the economy is difficult. In 2023, although people's consumption power has decreased, PNJ still maintains quite good revenue, and profits increase thanks to higher selling prices.

Recently, the world gold price has risen to nearly 2,200 USD/ounce - a record high. Meanwhile, the price of SJC gold bars is still around 81 million VND/tael, only slightly lower than the peak of 82.8 million VND recorded on March 12. The price of gold rings and jewelry gold has sometimes reached 71 million VND/tael.

Privileges of 'money queen' Cao Thi Ngoc Dung and the breakthrough of the gold company Ms. Cao Thi Ngoc Dung, Chairwoman of Phu Nhuan Jewelry PNJ, enjoys privileges in the leadership position of one of the fastest growing enterprises in Vietnam.