pnjPhu Nhuan Jewelry JSCHOSE_DLY:PNJNathanWong790299koFundamental Analysis and News Context Cause of the plunge: PNJ's stock price has plummeted to its lowest level since September 2021. This severe drop stems directly from the legal shock regarding the diamond smuggling case at P-Lab (a 100%-owned subsidiary of PNJ). The prosecution of P-Lab's former Director and a testing staff member has triggered a severe crisis of confidence in the market. Opposing cash flows: Institutional offloading: The negative news triggered a wave of portfolio restructuring among many investment funds. Notably, VinaCapital sold a massive amount of shares and is officially no longer a major shareholder of the company. Leadership accumulation: In contrast to the foreign sell-off, the company's management is making moves to support the price. General Director Phan Quoc Cong and Mr. Cao Ngoc Duy (the Chairman's brother) have registered to buy a total of 1.3 million shares, demonstrating the executives' confidence in the company's value. Core business foundation: Despite the negative news, PNJ's Q1/2026 business results were previously very impressive, with net revenue increasing by 79% and profit after tax surging by 116.5% year-over-year. Management also affirmed that daily business operations remain normal and maintained the 2026 profit targets. It is noted that the diamond business segment contributes approximately 33% of PNJ's jewelry revenue. Deeply discounted valuation: Following consecutive days of catastrophic price drops that wiped out trillions of VND in market capitalization, PNJ's P/E valuation has retreated to around 7x, which is a very cheap valuation level compared to the company's historical average.