GELEX rated A by VIS Rating

VIS Rating has assigned an A rating to GELEX Group JSC amid ongoing challenges facing both the global and Vietnamese economies. This is the first rating given to GELEX by VIS Rating.

The report from VIS Rating indicates that the competitive positioning and business diversification are assessed at a ‘Strong’ level, primarily driven by a ‘Strong’ rating in the segments of industrial real estates and electrical equipment manufacturing. Most of the group's subsidiaries are leading companies in terms of market share and business coverage.

Inside the CADIVI electric cable factory. Photo: GELEX

Currently, GELEX is the leading electrical equipment manufacturer in Vietnam, with a diverse range of products that account for 20 per cent to 35 per cent of the market share for each product type.

Through its subsidiary GELEX Power, the company holds several well-known national brands for electrical equipment, including Vietnam Electrical Cable Corporation, EMIC Electrical Measuring Instrument JSC, Electrical Equipment JSC, Hanoi Electromechanical Manufacturing JSC (HEM), and CFT Vina Copper Co., Ltd.

In the industrial real estate segment, GELEX's subsidiary, Viglacera Corporation, had the highest leasing area in 2023 among listed companies. Viglacera has developed 15 industrial parks covering over 4,000 hectares, with 1,000 hectares ready for lease, ranking it among the top five listed companies in the industrial real estate segment.

Viglacera is also a leading company in the building materials segment, holding a 42 per cent market share in construction glass and a 30 per cent market share in ceramic tiles.

Viglacera's industrial parks are experiencing stable growth. Photo: GELEX

Song Da Water Investment JSC – Viwasupco specialises in clean water production with a capacity of 300,000 cubic metres per day, serving about a quarter of Hanoi's clean water demand. The company is currently investing in expanding its water supply system to double its capacity, with an expected completion date in 2025-2026.

GELEX Group is one of the 30 largest listed companies on the stock exchange based on consolidated revenue over the past five years. According to VIS Rating's rankings, their ‘Very Strong’ assessment of GEX’s scale reflects a solid and extensive market presence in its core business segments, a variety of products to meet market demand, and the ability to maintain good relationships with suppliers and financial institutions.

“We highly value the business diversification of GELEX Group, as its operations and investments stretch across Vietnam and various segments. The company has a strong track record of executing its business plans and often exceeds its annual profit targets,” said VIS Rating.

The organisation also expects GEX to maintain ‘Very Strong’ annual revenue in the long term, thanks to its solid market share in the electrical equipment manufacturing segments and its investment portfolio in industrial real estates.

GEX also has long-term plans to expand, including a clean water capacity increase project, exporting electrical equipment products, and the Tran Nguyen Han Real Estate Complex Project.

The earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin on the group’s consolidated revenue is 19 per cent to 23 per cent, higher than the average for Vietnamese companies over the past five years. This high margin is mainly contributed by the industrial real estate, electricity, and water segments.

Meanwhile, GELEX's total debt is relatively low compared to the average leverage ratio of Vietnamese enterprises. GELEX's main subsidiaries account for 55 per cent of the group's total debt, with a low Debt/EBITDA ratio.

Founded in 1990, GELEX operates as a holding company, primarily investing in two core segments: electrical equipment manufacturing and infrastructure. The company maintains its growth rate thanks to an effective investment strategy and flexible solutions in a changing market environment. Recently, GELEX has focused on developing human resources, risk management, and promoting social responsibility.

VIS Rating was granted a credit rating agency licence by the Ministry of Finance of Vietnam in September 2023. The agency was established based on a partnership with Moody's (the world's most reputable credit rating agency) and other organisations, initiated by the Vietnam Bond Market Association.

VIS Rating provides independent credit rating services for domestic corporate issuers in Vietnam.

GELEX Group promoting new property and industrial ventures GELEX Group is making changes in its strategies with more real estate and industrial park ventures to create positive values.

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