GELEX reported a profit of more than VND 1,000 billion, completing nearly 80% of the plan in 2023

GELEX Group Joint Stock Company (stock code: GEX) has just announced its business results for the second quarter and the first six months of 2023. Accordingly, the Group’s production and business activities recorded positive results.

Specifically, in the second quarter of 2023, GELEX’s consolidated net revenue reached VND 7,996 billion, increased 24.7% compared to the first quarter and equivalent to 88% compared to the same period in 2022. Profit before tax of the second quarter reached VND 870 billion, increased of more than 5 times compared to the first quarter and raised 49% compared to the same period in 2022.

Generally, in 6 months, GELEX Group’s consolidated net revenue reached VND 14,406 billion, equivalent to 38.5% of the plan in 2023; profit before tax reached VND 1,014 billion, completing nearly 80% of the plan.

Gross profit of the second quarter reached VND 1,687 billion, increased 33% compared to the first quarter. Gross profit margin of the second quarter was 21%, slightly increased compared to the first quarter thanks to the contribution of Industrial Park segment.

GELEX grew thanks to the momentum from the Industrial Parks and Real estate segment.

In terms of operations, the driving force for GELEX’s revenue and profit growth in the second quarter of 2023 came from the Real Estate and Industrial Park segment when it recorded VND 1,771 billion in the net revenue, increased 43.6% compared to the first quarter and equivalent to the same period. This segment’s gross profit margin reached 54%, significantly higher than 38% of the first quarter and the average of 36% in 2022.

In the second quarter, GEX has recorded revenue from projects such as Yen Phong II-C Industrial Park, Yen My Industrial Park, Dong Mai Industrial Park … with a total handover area of 77 hectares, accumulated in the first 6 months of the year reaching 117 hectares. In the coming time, GELEX will continue to focus on construction of technical infrastructure in Industrial park projects including Thuan Thanh I, Tien Hai, Phong Dien, Phu Ha, Hai Yen.

GELEX’s net revenue of Energy and clean water in the second quarter of 2023 reached VND 370 billion, gross profit reached VND 112 billion. The total power output in the second quarter is 113 million kWh, accumulated in the first 6 months of 2023 reaching 259 million kWh, achieving 41% of the year plan since wind power projects are affected by the low wind cycle in the second quarter and the hydroelectricity to be continuously affected by Elnino.

Image of wind power pylons at the Gelex’s 1st, 2nd, and 3th Wind power plant project in Quang Tri

The Construction Material and Electrical Equipment segments still face many difficulties from the market since a decline in demand. The second quarter’s net revenue of Electrical equipment segment reached VND 3,673 billion, increased 14% compared to the first quarter and declined 17.2% compared to the same period in 2022. Gross profit reached VND 356 billion, declined 12.7% compared to the first quarter.

In the following quarters, the company’s orientation is to continue stick to the established plan; keep and grow domestic market share, gradually expand export; improve production and business efficiency; control inventory and strengthen risk management.

By the end of the second quarter of 2023, GELEX has stable assets and capital. GELEX’s total assets as of June 30, 2023 reached VND 52,408 billion, almost unchanged compared to the beginning of the year. The structure of assets and capital did not change much compared to the end of the first quarter and the beginning of the year. The ratio of long-term assets is 62%, long-term capital including long-term debt and equity is 69%, ensuring balance and system liquidity. The company’s financial ratios such as debt ratio and payment ratio remained at a safe level and continued to positively improve in the second quarter.

In the coming time, the flexible and appropriate management of monetary policy by the State Bank is expected to create an important foundation for Vietnam’s sustainably economy growth, and the quarterly profits of listed companies will recover in the second half of 2023.

Source: CafeF