ANTD.VN - That is the result after VIS Rating's first ranking of GELEX in the context of the world economy and Vietnam still facing many challenges in the future.
Recently, Vietnam Investment Credit Rating Joint Stock Company (VIS Rating) announced its long-term issuer credit rating of GELEX at A with a stable outlook.
With support from Moody's, VIS Rating has applied international standards and adapted them to the Vietnamese market, providing objective and transparent credit rating and assessment results.
The VIS Rating report shows that the competitive position and business diversification score at 'Strong' is mainly contributed by the 'Strong' score of the industrial park real estate and electrical equipment manufacturing segments. Most of the group's member units are industry leaders in terms of market share and business coverage.
Currently, GELEX is the leading electrical equipment manufacturer in Vietnam, with diverse product lines, accounting for 20 - 35% market share of each product type.
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| Electric cable manufacturing at CADIVI |
Through its subsidiary GELEX Electricity (stock code GEE), the company is holding many nationally famous brands of electrical equipment such as Vietnam Electric Cable Joint Stock Company, EMIC Electrical Measuring Equipment Joint Stock Company, Electrical Equipment Joint Stock Company (THIBIDI), Hanoi Electromechanical Manufacturing Joint Stock Company (HEM), Vietnam Copper Wire Company CFT.
In the field of industrial park real estate, GELEX's member unit, Viglacera Corporation - JSC (stock code VGC), has the highest leasing area in 2023 in industrial parks among listed companies. Viglacera has developed 15 industrial parks with more than 4,000 hectares of area and 1,000 hectares available for lease, ranking among the top 5 listed companies in the industrial park real estate sector. Viglacera is also a leading enterprise in the construction materials sector with 42% market share of construction glass and 30% market share of ceramic tiles.
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| An industrial park of Viglacera |
Song Da Clean Water Investment Joint Stock Company – Viwasupco (VCW) specializes in clean water production with a capacity of 300 thousand cubic meters of clean water per day and night, serving about ¼ of Hanoi's clean water demand. The company is currently investing in expanding the water supply chain system to double its capacity with an expected completion time in 2025 – 2026.
GELEX Group is one of the 30 largest listed companies on the stock exchange in terms of consolidated revenue over the past 5 years. VIS Rating stated in the ranking: Our “Very Strong” assessment of GEX’s scale reflects its deep and solid market presence in core business areas, its diverse product range to serve market needs, and its ability to maintain good relationships with suppliers and financial institutions.
VIS Rating said: “We appreciate the business diversification aspect as GELEX Group has business and investment activities spread across Vietnam and in many different industries. The company also has a history of implementing business plans well and often exceeding annual profit targets.”
The organization also expects GEX to maintain its annual revenue at a “Very Strong” level in the long term, thanks to its solid market share in the electrical equipment manufacturing group and its investment portfolio in the industrial real estate group. GEX also has long-term plans to expand its scale, including projects to increase clean water capacity, export electrical equipment products and the Tran Nguyen Han Real Estate Complex Project.
The group's EBITDA (Earnings before interest, taxes, depreciation and amortization) margin on consolidated revenue is 19-23%, higher than the average of Vietnamese companies in the past 5 years. The high margin is mainly contributed by the industrial real estate, electricity and water groups.
Meanwhile, GELEX's total debt is relatively low when compared to the average leverage ratio of Vietnamese enterprises. GELEX's main subsidiaries account for 55% of the group's total debt, with low Debt/EBITDA ratios, namely VGC (1.0x) and GEE (2.5x).
In the past 5 years, GELEX has not reported a loss in any year. GELEX 's scale has also increased dramatically, becoming one of the 30 companies with the largest revenue on the stock exchange.
According to the financial report for the third quarter of 2024 that GELEX announced, the total assets of this Group as of September 30 reached VND 53,617 billion. GELEX 's financial situation is also very healthy. The debt ratios and solvency ratios of GELEX as of September 30 continued to be controlled at a safe level. Gross profit margin was 19.1%, improved compared to the first quarters of the year and higher than the average in 2023 thanks to improved gross profit margins in the fields of electrical equipment , construction materials, industrial parks and real estate.
Source: https://www.anninhthudo.vn/gelex-dat-xep-hang-tin-nhiem-dai-han-muc-a-trien-vong-on-dinh-post595544.antd
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