9 Months, GELEX Surpasses 2024 Full-Year Profit Target

HoSE-listed shares of GEX surge as GELEX surpasses annual profit target for 2024

Ho Chi Minh City, Vietnam – GELEX Group Joint Stock Company (stock code: GEX) has announced its Q3 consolidated financial statements, reporting positive business results despite market challenges.

In Q3, net revenue reached VND 8,709 billion, up 5.9% QoQ and 16.3% YoY. Pre-tax profit was VND 502 billion, a 34.1% YoY increase.

Gross profit amounted to VND 1,660 billion, up 10.8% QoQ and 19.0% YoY, indicating improved core business operations.

Data analysis reveals that the primary driver of GELEX’s Q3/2024 revenue growth was the positive performance of its Electrical Equipment segment. This business area recorded VND 5,789 billion in net revenue, a 38.4% YoY increase. This marks the highest quarterly net revenue in the past three years for the Electrical Equipment division.

LF & LSHF non-toxic lead-free, fire-resistant, and fire-retardant plastic-insulated wires and cables by CADIVI.

GELEX Electric (stock code: GEE), a subsidiary of GELEX Group, manages the Electrical Equipment business. In recent years, the company has enhanced its production and sales capabilities, modernized its technology, and adopted contemporary management software, leading to improved business performance. Additionally, market expansion and exploration of new export markets for electrical equipment have yielded favorable outcomes.

Beyond producing environmentally friendly electrical devices, GELEX’s electrical equipment units also collaborate on research and development of cutting-edge technology products. Initial results are promising, with notable achievements in fire prevention and security and surveillance equipment.

Despite challenges, the Building Materials segment witnessed improved net revenue compared to previous quarters, totaling VND 1,952 billion, although this figure represents an 8.2% YoY decrease.

The Industrial Parks and Real Estate segment generated VND 759 billion in net revenue, on par with the same period last year. This sector holds significant potential, as projects by Viglacera (a GELEX subsidiary) attract high-quality capital.

Recently, THK Manufacturing of Vietnam Co., Ltd. selected the “Thuan Thanh Eco-Smart IP” Green and Smart Industrial Park project in Thuan Thanh, Bac Ninh province, for its VND 180 million expansion investment. Meanwhile, Johnson Health Tech will invest VND 100 million.

In Q3, the Infrastructure and Utilities segment, which includes energy and clean water projects, witnessed a significant decrease due to GELEX’s divestment from operational energy projects.

Overall, GELEX’s subsidiaries maintained stable growth in Q3/2024 through effective business strategies and flexible solutions amidst market challenges. This contributed to GELEX surpassing the profit target set by the Annual General Meeting of Shareholders.

For the first nine months of the year, GELEX recorded VND 23,617 billion in net revenue and VND 2,270 billion in pre-tax profit, equivalent to 73.1% and 118.2%, respectively, of the full-year plan. Thus, after nine months, GELEX has exceeded the approved plan by 18%. As of September 30, 2024, GELEX’s total assets amounted to VND 53,617 billion, and financial indicators remained within safe limits.

GELEX Receives an A Rating for Long-Term Issuer Credit Rating from VIS Rating

On October 25, Vietnam Investment and Securities Rating Joint Stock Company (VIS Rating) announced GELEX’s first-time long-term issuer credit rating of A with a stable outlook.

VIS Rating’s statement reads: “Our ‘Very Strong’ assessment of GEX’s Size reflects its extensive and solid market presence in core business areas, diverse product offerings to cater to market demands, and ability to maintain good relationships with suppliers and financial institutions.”

Mr. Le Tuan Anh, Deputy General Director of GELEX Group, receives the Top 50 Best Profit Companies in Vietnam 2024 award on October 24.

Previously, Vietnam Report recognized GELEX for the fifth consecutive year in its Top 50 Best Profit Companies in Vietnam 2024 ranking. This acknowledgment was bestowed upon GELEX for sustaining stable and resilientsection profitable operations during 2023-2024.

Furthermore, GELEX was also honored to be included in Brand Finance’s “TOP 100 Most Valuable Brands in Vietnam 2024” and was among the top 10 brands with the highest brand value growth in 2024, achieving a remarkable 55% increase.

According to the latest announcement from the Ministry of Industry and Trade, GELEX boasts four National Brands: CADIVI, Viglacera, THIBIDI, and GELEX Electric.

The consistent recognition and awards testify to GELEX’s robust financial health and operational excellence. Alongside revenue and profit growth targets, GELEX has recently focused on human resources development, risk management, and social responsibility.