GELEX has achieved impressive business results after 10 months, with consolidated net revenue reaching VND 26,668 billion, equivalent to completing 83% of the annual revenue target. Consolidated pre-tax profit reached 2,558 billion VND, equivalent to 130% of the plan.
According to the Q3/2024 financial report announced by GELEX, the Group's total assets as of September 30 reached 53,617 billion VND, down 2.7% compared to the beginning of the year, of which long-term assets decreased by 13% due to a decrease in fixed assets after divesting from a number of energy projects.
Regarding capital structure, GELEX's liabilities decreased by 8.4% compared to the beginning of the year, mainly due to restructuring long-term loans related to divested energy projects and reducing short-term debt from the proceeds of divestment. The proportion of short-term assets and short-term debt were 43.5% and 32.6%, respectively, ensuring working capital for production and business activities.
GELEX's financial situation is also very healthy. GELEX's debt ratios and solvency ratios as of September 30 continue to be controlled at a safe level. Gross profit margin is 19.1%, improved compared to the first quarters of the year and higher than the average in 2023 thanks to improved GNP margins in the fields of electrical equipment, construction materials, industrial parks and real estate.
Recently, VIS Rating announced its long-term issuer credit rating of GELEX at A with a stable outlook.
With support from Moody's, VIS Rating has applied international standards and adapted them to the Vietnamese market, providing objective and transparent credit rating and assessment results.
The VIS Rating report shows that the competitive position and business diversification score at the ‘Strong’ level is mainly contributed by the ‘Strong’ score of the industrial park real estate and electrical equipment manufacturing segments. Most of the group’s member units are industry leaders in terms of market share and business coverage.
GELEX Group is one of the 30 largest listed companies on the Stock Exchange in terms of consolidated revenue over the past 5 years. VIS Rating stated in its ranking: Our ‘Very Strong’ assessment of GEX’s Scale reflects its deep and solid market presence in core business areas, its diverse product offerings to serve market needs, and its ability to maintain good relationships with suppliers and financial institutions.
VIS Rating said: “We appreciate the business diversification aspect as GELEX Group has business and investment activities spread across Vietnam and in many different industries. The company also has a history of implementing business plans well and often exceeding annual profit targets.”
The organization also expects GELEX to maintain its annual revenue at ‘Very Strong’ in the long term, thanks to its solid market share in the electrical equipment manufacturing group and its investment portfolio in the industrial real estate group. GELEX also has long-term plans to expand its scale, including projects to increase clean water capacity, export electrical equipment products and the Tran Nguyen Han Real Estate Complex Project.
The latest report by VietCap released in August 2024 forecasted that GELEX's core after-tax profit in 2025 will increase sharply due to: Revenue from the electrical equipment segment increased by 13% despite the high base level in 2024; Revenue from the industrial park segment increased by 21% and interest expenses decreased.
Meanwhile, this unit also forecasts the compound annual growth rate (CAGR) of GELEX's net profit in the 2023-2028 period at 43%.
