Gelex Electric, is a subsidiary of Vietnam’s Gelex Group. The company primarily focuses on manufacturing and distributing electrical equipment, such as cables, switches, transformers, and motors. Additionally, the firm also manages and invests in power generation projects, however, this contributes less than 5 percent of its total revenue.
In 2022, the firm’s revenue fell by 10.7 percent year-over-year. This was partly due to the electrical equipment industry facing challenges such as erratic raw material price fluctuations, unfavourable exchange rates coupled with a weakening market demand. Pretax profit, however, increased by 37 percent. This was mostly attributed to the sale of 40 million shares that Gelex Electric owned in its sister company Gelex Infrastructure, to the parent company of the two firm’s the Gelex Group.
In 2023, however, the electrical equipment sector’s performance was negatively impacted by the sluggishness of the real estate and construction markets. As a result, the firm’s revenue and pre-tax profit slipped by 0.39 percent and 13.7 percent, respectively, compared to the previous year.
That said, in the first half of 2024, Gelex Electric’s net revenue surged by 24.2 percent to US$363.7 million, while pre-tax profit soared by 225.5 percent to US$33 million compared to the same period last year. This surge looks to, at least in part, be due to the sale of shares in two subsidiaries to Singapore’s Sembcorp.
Of note, in August 2024, 300 million shares in Gelex Electric were officially listed on the Ho Chi Minh Stock Exchange under the ticker GEE. Previously, the stock had been traded on the Unlisted Public Company Market.
Disclosure: The author does not have any financial interest in GEE stock.
See also: How to Open a Trading Account in Vietnam: Technical Guide 2024
Edit August 28,2024: Change “two power plants” to “shares in two subsidiaries” in paragraph three.