Vietnam Electrical Equipment Joint Stock Corporation – Gelex (GEX: HoSE) had announced the resolution of the Board of Directors on the payment of dividends in 2017. Accordingly, the company would pay 2017 dividend in cash at the rate of 10% of par value (VND 1,000/stock). The last registration date to receive dividends was 17 August 2018. The dividend would be paid on 31 August.

Also on that closing day, Gelex would issue stocks to increase charter capital. The company intended to issue an additional 67.7 million stocks to existing shareholders, equivalent to a rate of 20% (Shareholders who own 5 stocks would receive 1 additional stock). The capital for the issuance would come from the capital surplus and undistributed profit after tax of the Corporation. After the issuance, the new charter capital of Gelex would increase to VND 4,065 billion.

In the first 6 months of the year, Gelex reached over VND 6,200 billion in revenue and earned VND 528 billion in profit after tax. There was a relatively good recovery of GEX’s stock  during that time. Within 1 month, GEX increased by 20% from the price range of VND 30,000/stock to VND 36,000/stock.

Gelex was focusing on the segments of industrial production, utility business such as energy and manufacturing, clean water supply, logistics activities, real estate, etc. In which, the electrical equipment manufacture was the core and key segment. In the first 6 months of 2018, revenue from the production and business activities of electrical equipment was VND 5,147 billion, accounting for 83% of the Corporation’s total revenue.

Gelex had set a target of VND 15,000 billion in revenue and VND 1,820 billion in profit before tax in 2018.

After the restructuring process, the company’s electrical equipment manufacturing activities were being transferred to its subsidiary, Gelex Electric Devices Co., Ltd. (Gelex Electric). This is a company 100% owned by Gelex. Gelex’s products include all products in the electrical industry from High, Medium to Low Voltage. In this segment, Gelex is Vietnam’s leading enterprise in terms of brand, sales scale as well as product lines.

With impressive growth in production and business results in previous years, the Corporation was expected to maintain a stable dividend policy of 30%/year. Specifically, the Resolution of the 2018 Annual General Meeting of Shareholders also fixed the 2018 dividend payout ratio at 30%, equal to the 2017 ratio.

Source: http://cafef.vn/gelex-chuan-bi-tra-co-tuc-bang-tien-va-co-phieu-tong-ty-le-30-20180807181112698.chn