What challenges lie ahead for GELEX?

For instance, the delay in new investments by EVN (Vietnam Electricity) may impact revenue in the electrical equipment segment, while the slow recovery of the real estate market affects the building materials business of its subsidiaries.

Growth Driven by Core Businesses

At the 2025 Annual General Meeting (AGM), Chairman of the Board Nguyễn Trọng Hiền shared that the group's Q1/2025 revenue is estimated to grow by 16%, with pre-tax profit projected to increase by 58% compared to the same period in 2024, reaching VND 600 billion. These are impressive figures, especially given the economic challenges and volatility in 2025.

The 2024 financial report showed that the company achieved VND 33,752 billion in revenue and VND 3,613 billion in pre-tax profit, up 12.5% and 158.6% respectively compared to 2023. Thus, GELEX exceeded the 2024 AGM targets for revenue and profit by 4.5% and 88.1%, respectively. This growth in 2024 was driven by its core sectors: electrical equipment, building materials, industrial zones (IZs), and real estate.

Despite the growth during a difficult period, GELEX's Board of Directors still proposed a 10% dividend payout for 2024, equivalent to VND 858 billion. This includes a 5% cash dividend (VND 429 billion) and a 5% stock dividend (VND 429 billion), meaning shareholders will receive VND 500 per GEX share held. The dividend is expected to be paid starting May 22, 2025. This move is seen as a significant morale boost for long-time shareholders.

Prioritizing Key Investments

GELEX’s leadership believes that Vietnam’s economy is poised for positive growth in 2025, with an 8% GDP target and synchronized fiscal and monetary policies supporting business development. Against this macro backdrop, GELEX plans to focus its resources on managing large investments and allocating capital to industrial park infrastructure, digital infrastructure, and sectors that benefit society and the community.

The company aims to maintain stable growth in its core businesses: manufacturing electrical equipment and building materials, expanding exports, and developing high-tech, eco-friendly products. These are long-term strategic focuses for the group.

Currently, GELEX is selectively investing in promising renewable energy projects within its priority portfolio. In the clean water segment, GELEX is committed to completing phase 2 of the Sông Đà Water Plant on schedule and is exploring clean water supply projects in localities and industrial zones. GELEX and its subsidiaries are also focused on developing land banks across provinces, with an emphasis on building smart industrial zones and integrated eco-industrial cities aligned with sustainable development and high-quality FDI trends.

According to VCBS, in addition to its traditional customer, EVN, GELEX has expanded its reach to residential customers through a "Northward expansion" strategy, which has begun to yield positive results. In the industrial real estate segment, GELEX is estimated to still have about 800 hectares of industrial land ready for lease, mainly in the northern region. In the hospitality sector, GELEX is pushing forward a major hotel project at 10 Trần Nguyên Hãn Street, Hanoi, with a total investment of up to VND 5,000 billion.

Arranging Capital for Projects

At the AGM, GELEX’s Board of Directors proposed a 2025 target of VND 37,600 billion in consolidated revenue (up 11.5%) and VND 3,041 billion in pre-tax consolidated profit (down 15% year-on-year). The projected decline in profit is due to the absence of one-time gains from divesting renewable energy projects, which contributed nearly VND 1,000 billion in 2024. The 2025 dividend is also planned to remain at 10%.

To realize its growth objectives, GELEX is actively seeking funding sources. Recently, it reached an agreement with HSBC to arrange financing for its projects. The loan, worth approximately USD 40 million, has a 5-year term and is backed by a comprehensive financial guarantee of up to 80%. The loan recipient is GELEX Infrastructure, a GELEX subsidiary that invests and develops in sectors such as electrical equipment, industrial zones, real estate, energy, and clean water. It oversees member companies like Viglacera Corporation, Sông Đà Clean Water Investment JSC, and Long Sơn Petro-Industrial Zone Investment JSC.

This loan will enable GELEX and its affiliates to access long-term foreign currency capital, accelerating investment in core business sectors and supporting the group’s long-term growth strategies. In addition to foreign funding, GELEX is also raising capital by issuing stock dividends. Specifically, it plans to issue an additional 42.9 million shares to existing shareholders, increasing its charter capital by VND 429 billion to about VND 9,024 billion.