Services
Reportedly, GELEX Corporation recorded consolidated net revenue and pre-tax profit of VND 6,660 billion and VND 385 billion, respectively, marking a 3.9% and 167.7% increase year-over-year. This quarter’s gross profit reached VND 1,200 billion, a 5.4% decrease compared to the same period last year due to ongoing challenges in the electrical equipment and construction materials segments.
By the end of the first quarter, GELEX had achieved 20.6% of its revenue target and 20% of its profit target for 2024.
In terms of business segments, real estate and industrial parks continued to shine, recording VND 1,239 billion in net revenue, a 0.5% increase year-over-year. Despite the similar net revenue compared to the same period last year, the gross profit margin for this segment surged to 50% from 37.8%, resulting in a gross profit of VND 619 billion, a 32.8% increase.
This segment continues to exhibit positive growth and remains a key investment focus for GELEX in the near future. Viglacera, a subsidiary of GELEX Corporation, also received approval to invest in the Doc Da Trang Industrial Park (spanning 288 hectares) and the Song Cong II Industrial Park (spanning 296 hectares). Previously, the company announced the Thuan Thanh Eco-Smart IP in Bac Ninh province.
In addition to developing industrial park infrastructure at Viglacera, GELEX is strengthening its partnership with Frasers Property Vietnam to develop ready-built factories and warehouses, and has commenced construction on two more green-certified high-end real estate projects: Industrial Center Yen My (groundbreaking on March 21, 2024) and Industrial Center Dong Mai (groundbreaking on March 23, 2024).
Perspective of the Industrial Center Yen My Project in Yen My Industrial Park, Hung Yen.
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These industrial parks are being built with a focus on customer needs, meeting green building standards (LEED), and aiming for sustainable development. This is also a stepping stone for GELEX’s real estate and industrial park segment to grow in the future.
In the electrical equipment segment, net revenue this quarter reached VND 3,605 billion, an increase of 12.2% year-over-year. Utility infrastructure (including energy and clean water projects) recorded revenue of VND 389 billion, a decrease of 3.3%; the construction materials segment achieved revenue of VND 1,416 billion, a 7.9% decrease compared to the same period last year.
Another positive factor in the quarter was the reduction in interest rates compared to Q1 2023, leading to lower financial expenses, while increased financial revenue during the period also contributed to the growth in profit for Q1 2024 compared to the same period last year.
Earlier, on March 28, 2024, GELEX Corporation held its annual General Meeting of Shareholders, approving consolidated net revenue targets of VND 32,303 billion and consolidated pre-tax profit of VND 1,921 billion, representing increases of 7.7% and 37.5%, respectively, compared to 2023.
In terms of development strategy, GELEX will restructure its investment portfolio, prioritizing the electrical equipment, industrial park and industrial real estate development, and renewable energy segments within the Group’s investment strategy.
The company will also invest in R&D; develop an ecosystem of partnerships with leading multinational corporations; and continue to focus on sustainable development by formulating a business strategy aligned with core competencies and gradually implementing an integrated ESG governance framework (Environment – Social – Corporate Governance).
