The electrical equipment segment earning more than VND 5,000 billion in revenue, Gelex reported a 6-month profit of VND 528 billion
In 2018, Gelex determined a comprehensive restructuring for growth, in which the electrical equipment segment was the core business of the Corporation.
Vietnam Electrical Equipment Joint Stock Corporation (Gelex – stock code GEX) announced its business results for the first 6 months of 2018 with net revenue of VND 6,218 billion, an increase of 9.28% compared to the first half of last year while the cost price increased by 11%, so gross profit from sales and service reached nearly VND 909.7 billion, slightly decreased by 1.3% over the same period. The gross profit margin reached 14.6%.
In the revenue structure of Gelex, revenue from the production and business of electrical equipment played a key role with VND 5,147 billion, accounting for 83% of total revenue. The rest came from logistics services, clean water production, electricity sales and other activities. Especially, the clean water production and business activities of Da River began to be recorded in the company’s consolidated financial statements from the second quarter of 2018.
Financial revenue reached VND 369 billion, which decreased by VND 309 billion over the same period because in the first half of last year, the company recorded a profit of VND 525 billion from the transfer of capital contribution at Keppel Land Watco IV Co., Ltd. Excluding this extraordinary amount, financial revenue increased by 25% compared to the same period last year. Similarly, the accumulated profit of the first 6 months of the year reached VND 613 billion, much lower than that in the same period last year, but if the above-mentioned extraordinary income was excluded, the actual accumulated profit would increase by 36% over the same period.
Gelex was then in the process of strong and comprehensive restructuring with the electrical equipment segment as the core business of the Corporation. Therefore, Gelex had just gathered its subsidiaries in electrical equipment segment into Gelex Electric Devices Co., Ltd., which is a wholly owned subsidiary of Gelex.
In a conversation with us, Gelex said that this gathering made it convenient for Gelex to manage and increase the efficiency of production and business activities in the electrical equipment segment through: (a) human resources optimization, (b) system-wide centralized procurement, (c) customer expansion across the distribution system of subsidiaries, selling more to one customer, (d) focusing on large-scale research and development of new products. In the past time, Gelex and its subsidiaries had focused on researching new products, investing in purchasing patents from the world’s leading electrical equipment manufacturers for high-tech products that Vietnam was then importing.
Gelex also said that the Corporation was completing the electrical equipment value chain in an extensive way, as well as manufacturing products from low, medium, and high voltage. In the period of 2018-2022, the company would invest in power supply, focus on renewable energy, etc. Therefore, it was estimated that after the first stage of restructuring, the company’s business results would thrive in the following period.
Although officially listed on the HSX in January 2018, GELEX had created impressive numbers and had been recognized by the market. At the 2018 Business Forum, Forbes Vietnam held a ceremony to honor the “Top 50 listed companies in 2018”, in which Vietnam Electrical Equipment Joint Stock Corporation (Stock code GEX) was honored to be named in this list for the first time. Top 50 listed companies ranked by Forbes Vietnam is a list of companies with the best business performance through published financial indicators, including companies listed on Ho Chi Minh Stock Exchange (HSX) and Hanoi Stock Exchange (HNX).