Gelex Group, listed on the Ho Chi Minh Stock Exchange under the ticker GEX, is a Vietnamese conglomerate. The firm has two subsidiaries: Gelex Electric, which manufactures electrical equipment and Gelex Infrastructure engaged in building materials, real estate projects and power generation.
In 2021, GEX experienced significant growth, with revenue and profit increasing by 59.03 percent and 71.82 percent respectively compared to the previous year. The stock price increased 2.3 times from October 2021 to January 2022.
This surge was primarily attributed to the acquisition of Viglacera, a building materials manufacturer. Gelex consolidated Viglacera’s business results with its own from the second quarter of 2021. The acquisition was finalised in April when Gelex purchased 18.5 million Viglacera shares, raising its ownership stake from 46.1 percent to 50.2 percent.
In 2022, GELEX’s revenue rose by 12 percent year-over-year, driven by the growth of its industrial park, real estate, construction materials, and energy segments. It did, however, record a fall in electrical equipment revenue which it said was because it had to relocate to factories.
In 2023, revenue and pretax profit declined by 6.09 percent and 32.86 percent year-over-year, respectively. This was due to the manufacturing sector experiencing a downturn, particularly in construction materials and electrical equipment, which were impacted by rising input costs and a broader downturn in the housing market.
In the first half of 2024, revenue and pre-tax profit experienced an increase of 3.8 percent and 74.4 percent compared to the previous year, respectively. The significant increase in pre-tax profit was partially attributed to the sale of majority stakes in three Gelex Group subsidiaries to Singapore’s Sembcorp. Of note, in August 2024, 300 million shares in Gelex Electric, a subsidiary of Gelex Group, were officially listed on the Ho Chi Minh Stock Exchange under the ticker GEE.
See also: Gelex Electric: Vietnam Stock Overview
Disclosure: The author does not have any financial interest in GEX stock.