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Gelex (GEX) ambitions to lead electrical equipment industry
The annual general shareholders’ meeting (AGM) of Vietnam Electrical Engineering Equipment JSC (Gelex, HoSE: GEX) on April 27 approved comprehensive restructuring in three segments. The firm designated electrical devices as the main sector helping it to maintain its leading position in the industry.
A year of spectacular breakthroughs
2017 marked Gelex's strong development via its acquisition of Sotrans Group, Phu Thanh My JSC, and Vinakip JSC, as well as raising ownership in Thibidi JSC and Cadivi Co., Ltd.
Gelex's consolidated net revenue in 2017increased by 64.2 per cent , reaching VND11.984 trillion ($527.9 million), exceeding the VND7.297 trillion ($321.4 million) reported in 2016. Its consolidated after-tax profit was VND1.315 trillion ($57.9 million), 25.2 per cent higher than its target and up 8 per cent on-year. Its subsidiaries' net revenue hit VND2.216 trillion ($97.6 million), including after-tax profit of VND369 billion ($16.25 million), up 21 per cent against the VND305 billion ($13.4 million) in 2016.
Gelex plans to raise its dividend to 30 per cent instead of its previous target of 20 per cent, including 10 per cent in cash and 20 per cent in stocks.
Further restructuring in 2018
Gelex's total revenue is expected to hit VND15 trillion ($660.8 million), including VND12.5 trillion ($550.6 million) from electric devices and the rest from logistics and infrastructure investment.
Since early 2018, Gelex has been officially listed on the Ho Chi Minh City Stock Exchange, when it listed 266.8 million shares at theprice of VND10,000 ($0.44). The decision to move from UpCOM to HoSE has strengthened investors’ belief in the value of GEX and has been a significant milestone for the corporation.
With the target to become a joint-stock company specialised in the management of its subsidiaries, Gelex is working on deep restructuring andfocusing on its three main industries, including electrical devices, infrastructure (electricity, water, logistics), and real estate. In particular, electrical devices will continue to be the company’s core business. In order to optimise production and management, Gelex will transfer its entire ownership in CADIVI, THIBIDI, and HEM JSC to Gelex Electrical Equipment Co., Ltd. (formerly Electric Measurement Instrument Co., Ltd.) and steadily increase its ownership in these companies to 100 per cent. Gelex will be able to deploy its development strategy in the electrical equipment business, which brings the highest benefit to the corporation.
After restructuring, Gelex Electrical Equipment Co., Ltd. will continue to develop its key products, namely CADIVI electric cable; THIBIDI, HEM potential transformers; GELEX-EMIC electrical measurement instruments; as well as HEM and VIHEM electric motors.
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