GELEX actively seeks new investment opportunities

In 2024, GELEX's profit growth will be driven by core areas such as electrical equipment, construction materials, industrial parks (IPs) and real estate.

GELEX's net revenue in the period 2015-2025.

In 2025, GELEX targets an 11.5% increase in net revenue, but a 15% reduction in pre-tax profit target.

Growth through core business

At the 2025 General Meeting of Shareholders, Mr. Nguyen Trong Hien - Chairman of the Board of Directors of GELEX said that the group's revenue in the first quarter of 2025 is estimated to increase by 16% and pre-tax profit is estimated to increase by 58% compared to the same period in 2024, reaching 600 billion VND. This is a number that many businesses dream of in the context of the difficult and volatile situation in 2025.

The 2024 financial report shows that the company's revenue will reach VND 33,752 billion, and pre-tax profit will reach VND 3,613 billion, up 12.5% and 158.6% respectively compared to 2023. Thus, GELEX's revenue and pre-tax profit in 2024 will exceed the plan set by the General Meeting of Shareholders by 4.5% and 88.1% respectively. It can be seen that GELEX's profit growth in 2024 will be thanks to core areas such as electrical equipment, construction materials, industrial parks (IPs) and real estate.

Business growth in a difficult context, but GELEX's Board of Directors still finalized the dividend payment plan for 2024 at 10%, equivalent to VND 858 billion. Of which, cash dividend is 5%, equivalent to VND 429 billion, stock dividend is 5%, equivalent to VND 429 billion. Thus, shareholders will receive VND 500 in dividends for each GEX share held. The expected time for dividend payment is from May 22, 2025. It can be said that this is a great source of encouragement for shareholders.

Prioritize investment in key projects

GELEX's Board of Directors believes that in 2025, Vietnam's economy is forecast to continue to grow positively, and synchronously implemented fiscal and monetary policies will be the driving force supporting the development of enterprises. In the context of many favorable but also challenging macro-economic conditions, GELEX focuses resources on managing large investments, allocating investments to industrial park infrastructure projects, digital infrastructure and areas with positive impacts on society and the community. In particular, the group will continue to maintain stable growth in the field of manufacturing electrical equipment and construction materials, promoting exports abroad, and researching new products with high technology content and environmental friendliness. This is the core business line that the Group has pursued for many years.

Currently, GELEX's investment will be selective in potential renewable energy projects in the group's priority portfolio. For the clean water sector, GELEX ensures the timely completion of phase 2 of the Song Da clean water plant and researches investment in clean water supply projects in localities and clean water supply in industrial parks. GELEX and its member companies aim to develop land funds in many localities. In particular, focusing on building smart industrial parks, industrial cities integrated with ecological urban areas towards sustainable development, anticipating the trend of high-quality FDI.

VCBS believes that, in addition to traditional customer EVN, GELEX has also expanded its civil customer base with a strategy of going North and has brought positive initial results. Regarding the industrial park real estate business, VCBS estimates that this enterprise still has about 800 hectares of industrial park land available for lease, concentrated in the Northern region. However, EVN's delay in new investment and the slow recovery of the real estate market will be a big challenge for GELEX.

Arranging capital for projects

The Board of Directors of GELEX has submitted to the General Meeting of Shareholders, with the target of total consolidated revenue in 2025 reaching VND 37,600 billion, an increase of 11.5% and consolidated profit before tax in 2025 reaching VND 3,041 billion, a decrease of 15% compared to 2024. GELEX's pre-tax profit is expected to decrease because the Company no longer has extraordinary profits from divestment of renewable energy projects of about VND 1,000 billion. Dividends in 2025 are expected to be at 10%. To implement projects for the growth target in 2025, what should GELEX do?

Not only seeking domestic capital, GELEX has recently reached an agreement with HSBC Bank to arrange capital for the company's projects. It is known that the loan has a term of 5 years, with a total value of about 40 million USD, and is provided with a comprehensive financial guarantee of up to 80%. It is known that GELEX Infrastructure is a subsidiary of GELEX that received this loan, operating under an investment and development model in the fields of electrical equipment, industrial parks and real estate, energy and clean water. This company manages member enterprises such as Viglacera Corporation, Song Da Clean Water Investment Joint Stock Company; Long Son Petroleum Industrial Park Investment Joint Stock Company, etc.

This loan will help GELEX and its member companies access long-term capital in foreign currency, promote investment in core business areas that the company is pursuing, and facilitate the implementation of long-term growth strategies for the group. In addition to arranging foreign capital, GELEX also mobilizes capital by distributing dividends in shares. Accordingly, the group plans to issue an additional 42.9 million shares to shareholders. Thereby, the group's charter capital will increase by VND429 billion, reaching about VND9,024 billion.