According to Vietcap Securities, this growth is primarily attributed to continued expansion in the electrical equipment segment and expectations of a recovery in the real estate market, which will boost the building materials segment.

GELEX building at 52 Le Dai Hanh street, Hai Ba Trung district, Hanoi City.

Vietcap Securities (VCI) has released an analysis report on GELEX Group (HOSE: GEX).

The report projects GELEX’s 2024 revenue at VND 32,017 billion VND, a 7% increase from 2023. The growth of revenue in the electrical equipment segment is expected to offset a decrease in industrial land sales.

In GELEX’s 2024 revenue structure, electrical equipment revenue is projected to increase by 21% compared to previous year, to VND 19,183 billion, driven by the exceeding performance of GELEX Electric’s subsidiaries.

Conversely, the building materials and industrial park leasing/services are forecast to decline by 6% and 14%, respectively, reaching VND 7,455 billion and VND 3,757 billion. Vietcap reduced its forecast for 2024 industrial land sales from 152 hectares to 139 hectares due to lower-than-expected sales in the first nine months of 2024 (only 85 hectares).

Vietcap projects GELEX’s 2024 profit before and after tax at VND 2,798 billion and VND 2,102 billion, representing increases of 100% and 143%, respectively, compared to 2023. Profit after tax, excluding minority shareholders’ interests, is estimated at VND 1,174 billion, a 255% increase primarily driven by VND 1,100 billion in profit before tax from divesting energy portfolio and increased profit from the electrical equipment segment.

For 2025, Vietcap forecasts a 14% increase in GELEX’s consolidated revenue to VND 36,641 billion compared to 2024. All segments except power generation are expected to see growth. Electrical equipment revenue is projected to increase by 14% to VND 21,814 billion, with significant contribution from CADIVI (15% growth). Building materials are expected to increase by 18% to VND 8,780 billion, reflecting anticipated real estate market recovery.

Industrial park leasing and services revenue is projected to grow by 26% to VND 4,741 billion due to a 21% increase in average rental prices and contributions from new industrial parks in Thuan Thanh (Bac Ninh) and Song Cong (Thai Nguyen).

Driven by expansion and recovery across most segments, GELEX’s gross profit is projected to increase by 25% to VND 6,736 billion.

However, despite of strong growth of revenue, financial income is estimated to decrease by 88% to VND 179 billion from VND 1,457 billion in 2024 due to the absence of profits from the divestment of energy portfolio of 2024.

After deducting taxes and fees, Vietcap projects GELEX’s 2025 profit after tax at VND 1,921 billion, a 9% decrease compared to the 2024 projection. However, profit after tax excluding minority interests in core business is still estimated at VND 1,093 billion, a 124% increase, mainly due to core profit growth across all segments.