GELEX reported a profit of VND 302 billion in the second quarter, an increase of 85% over the same period
Vietnam Electrical Equipment Joint Stock Corporation (GELEX– Ticker Symbol: GEX) announced its financial statements for the second quarter and the first six months of 2019.
All business segments achieved high growth over the same period
Particularly in the second quarter of 2019, GELEX’s total net revenue increased by 19.5% compared to the second quarter of last year, reached VND 4,036 billion. Meanwhile, COGS increased by 15%, so gross profit from sales and service provision reached VND 738 billion, up by 45% compared to the second quarter of last year. Gross profit margin reached 18.3%.
In the revenue structure of GELEX, revenue from the electrical equipment segment reached VND 3,345 billion, up by 19.1% compared to the second quarter of last year and contributed to 82% of total revenue. The rest was revenue from providing logistic services, energy production and trading, and real estate business. In which all segments has had growth over the same period.
Notably, the electrical equipment segment alone brought in VND 556 billion out of a total of VND 738 billion in the company’s gross profit. This was the core and traditional business segment of GELEX, was the “golden egg” of the group. At the 12th International Exhibition on Electrical Technology and Equipment (Vietnam ETE 2019) and the 9th International Exhibition on Green Energy-saving Technology and Products (Enrtec Expo 2019), the booth exhibiting electrical equipment products of GELEX Electric (a subsidiary of GELEX) was highly appreciated by many visitors for their usefulness, environmental friendliness and energy saving. Especially, with a team of R&D who always research, create and transfer technology from advanced countries, GELEX ELECTRIC had an array of new products on display in this exhibition. It was CADIVI that launched 03 new product lines of environmentally friendly electrical cables (ECO-FRIENLY), lead-free, heat-resistant, fireproof and non-toxic, and easy in construction and installation. In particular, especially serving the increasing demand for the development of solar renewable energy segment, the CADIVI solar power cable product line was developed according to specialized features that meet European standards.
In the first 6 months, the energy segment brought VND 104 billion of gross profit, while the transportation service segment brought VND 88 billion for GELEX. The energy segment promised to bring a lot of fiscal spaces when the Canan 1, Canan 2 Hydropower Plants and Ninh Thuan Solar Power Project came into operation. GELEX was also promoting investment in new power generation projects including GELEX 1,2,3 wind power project, Huong Phung 2 wind power project, Huong Phung 3 wind power project in Quang Tri and solar power project in Binh Phuoc, etc.
Profit in the second quarter of 2019 rocketed by 85%
In the second quarter of 2019, revenue surged and gross profit margin was much better than the same period last year, helping GELEX have a breakthrough business period with profit before tax of VND 366.5 billion, an increase of more than 80% compared to the second quarter of last year. Profit after tax increased by 84.7%, reaching over VND 302 billion.
Explaining this spike, the GELEX leadership representative said: The main reason was that in the second quarter of 2019, the gross profit of the electrical equipment segment increased by 45% and the gross profit of the Logictics segment increased by 48% thanks to the implementation of optimization in production and the surge in revenue compared to the same period last year.