GELEX receives a long-term credit rating of A, with a 'Stable' outlook.

ANTD.VN - This is the result of VIS Rating's first-ever rating of GELEX , amidst the challenges facing the global and Vietnamese economies in the future.

Recently, Vietnam Investment Credit Rating Joint Stock Company (VIS Rating) announced that it has rated GELEX's long-term issuer credit rating 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 assessments and rankings.

The VIS Rating report shows that the competitive position and business diversification score is 'Strong', primarily contributed by the 'Strong' scores of the industrial real estate and electrical equipment manufacturing segments. Most of the group's member companies are industry leaders in terms of market share and business coverage.

Currently, GELEX is a leading manufacturer of electrical equipment in Vietnam, with a diverse range of products and holding 20-35% market share for each product category.

Electrical cable manufacturing at CADIVI

Through its subsidiary GELEX Power (stock code GEE), the company holds many nationally renowned brands of electrical equipment such as Vietnam Electric Cable Joint Stock Company, EMIC Electrical Measurement Equipment Joint Stock Company, THIBIDI Electrical Equipment Joint Stock Company, Hanoi Electromechanical Manufacturing Joint Stock Company (HEM), and Vietnam Copper Wire Joint Stock Company CFT.

In the industrial real estate sector, GELEX's subsidiary, Viglacera Corporation (stock code VGC), had the highest leased area in industrial parks in 2023 among listed companies. Viglacera has developed 15 industrial parks with over 4,000 hectares of land and 1,000 hectares available for lease, ranking among the top 5 listed companies in the industrial real estate sector. Viglacera is also a leading enterprise in the construction materials sector with 42% market share of construction glass and 30% market share of ceramic tiles.

An industrial park of Viglacera

Song Da Water Supply Investment Joint Stock Company – Viwasupco (VCW) specializes in the production of clean water with a capacity of 300,000 cubic meters of clean water per day, serving approximately one-quarter of Hanoi's clean water needs. The company is currently investing in expanding its water supply chain system to double its capacity, with completion expected in 2025-2026.

GELEX Group is one of the 30 largest listed companies on the stock exchange by consolidated revenue over the past five years. VIS Rating stated in its ranking: "Our 'Very Strong' rating on GEX's size reflects its deep and robust market presence in core business areas, its diversified product range to serve market needs, and its ability to maintain strong relationships with suppliers and financial institutions."

VIS Rating stated: “We appreciate GELEX Group’s business diversification, as the company has business and investment operations spanning across Vietnam and in various sectors. The company also has a history of successfully executing its business plans and consistently exceeding its annual profit targets.”

The organization also expects GEX to maintain "very strong" annual revenue in the long term, thanks to its solid market share in the electrical equipment manufacturing sector and its portfolio in industrial real estate. GEX also has long-term plans for expansion, including projects to increase clean water capacity, export electrical equipment products, and the Tran Nguyen Han Real Estate Complex Project.

The group's consolidated EBITDA (Earnings Before Interest, Taxes, and Depreciation) margin on revenue is 19-23%, higher than the average for Vietnamese companies over the past five years. This high margin is primarily driven by the industrial real estate, electricity, and water sectors.

Meanwhile, GELEX's total debt level is relatively low compared to the average leverage ratio of Vietnamese businesses. GELEX's main subsidiaries account for 55% of the group's total debt, with low Debt/EBITDA ratios, specifically VGC (1.0 times) and GEE (2.5 times).

Regarding business results for 2024, as of the end of October, GELEX's consolidated net revenue reached VND 26,668 billion, equivalent to 83% of the annual revenue target. Consolidated pre-tax profit reached VND 2,558 billion, equivalent to 130% of the plan.

In the last five years, GELEX has not reported a single loss. GELEX 's scale has also increased significantly, becoming one of the top 30 companies by revenue on the stock exchange.

According to GELEX 's Q3 2024 financial report , the Group's total assets as of September 30 reached VND 53,617 billion. GELEX 's financial situation is currently very healthy. Its debt ratios and solvency ratios as of September 30 continue to be controlled at safe levels. The gross profit margin is 19.1%, an improvement compared to the earlier quarters and higher than the 2023 average, thanks to improved margins in the electrical equipment, construction materials, industrial park, and real estate sectors.

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