Gelex set revenue target of VND 36,000 billion, continued to look for M&A opportunities

In 2022, Gelex continued to raise business targets with a growth strategy through M&A activities.

Gelex Group (ticker symbol GEX – HoSE) announced the documents of the 2022 Annual General Meeting of Shareholders. That meeting would be held virtually on Thursday, May 12, 2022.

Restructuring, implementing a series of M&A deals in 2021

According to the report of the Board of Directors of Gelex, in 2021, the group completed the production and business plan with consolidated net revenue of VND 28,578 billion, equal to the plan in 2021 and up by 59.2% compared to 2020; consolidated profit before tax reached VND 2,057 billion, exceeding the plan by 60% and growing by nearly 72% compared to 2020.

According to the report signed by General Director Nguyen Van Tuan: “The consolidation of production and business results of Viglacera Corporation – JSC (Viglacera) made an important contribution to Gelex’s production and business results”.

According to the Board of Directors, on June 24, 2021, Gelex officially changed its name to Gelex Group Joint Stock Company, thereby positioning Gelex as a corporation that invests and manages capital in businesses/projects which attached to national brands in the segments of electrical equipment, building materials, industrial park real estate, energy, and clean water.

After restructuring, the group owned and controlled 2 sub-holdings, namely Gelex Electric (the charter capital was VND 3,000 billion) specializing in industrial production (mainly electricity industry) and Gelex Infrastructure (the charter capital was VND 7,900 billion) specializing in investing and trading in infrastructure including industrial real estate, commercial real estate, electricity, clean water, etc.

These sub-holdings were oriented towards popularization so that the group’s operations were more transparent and ideal to international standards. Specifically, Gelex Electric completed the registration of a public company in December 2021, registered for trading on UpCoM and officially traded from March 8 with the ticker symbol GEE Infrastructure Gelex was expected to popularize and conduct the listing or registration of UpCoM transactions in 2022 on the basis that Gelex Group was holding the controlling rate.

Regarding investment and development activities, in the past year, subsidiaries owned by Gelex Electric continued to make in-depth investments. In the segments of infrastructure, Gelex completed the investment in a cluster of 5 wind power projects in Huong Hoa district, Quang Tri province (total installed capacity of 150mW) before October 31, 2021 in order to enjoy preferential electricity prices and deploy Da river water project phase 2 and pipeline projects grade II.

Regarding real estate, Viglacera was preparing to invest the key projects in the segment of industrial park infrastructure, social housing, worker housing. Notably, Gelex started and constructed according to the schedule of the project “Complex of hotels, commercial services and leasing offices” at 10 Tran Nguyen Han and 27-29 Ly Thai To, Hoan Kiem District, Hanoi.

As an enterprise with eventful M&A activities in recent years, in 2021, Gelex’s M&A activities focused on increasing the ownership rate to the controlling level in Viglacera (50.21%), increasing the ownership rate in Song Da Clean Water Investment JSC from 60.46% to 62.46%; increasing ownership rate in CADIVI from 95.82% to 96.35%. In the Viglacera system, that company also completed the procedure of acquiring Bach Ma Factory to invest in renovation and development investment in large plate products, raising the ownership rate to the controlling level in Phu My Ultra Clear Float Glass ( PFG).

In 2022, the Group set a target of high revenue and profit, continued to look for M&A opportunities

In 2022, Gelex achieved the revenue target of VND 36,000 billion and consolidated profit before tax of VND 2,618 billion, up by 26% and 27.2% respectively compared to 2021. The Group proposed not to pay dividends in 2021, set a target to pay dividends in 2022 at the rate of 15%/year

In the segment of infrastructure, in 2022 Gelex would develop selectively and disburse investment in phases to develop projects in the list of investment-prepared projects such as: Vinh Hai Offshore Wind Power Cluster (800 MW), Gia Lai Wind Power (100 MW), Dak Lak Wind Power (200 MW), Binh Phuoc 1, 2 Farm Solar Power (480 MW), LNG Long Son and other projects.

In 2022, Gelex planed to look for M&A opportunities in renewable energy projects, and at the same time look for investment opportunities in clean energy projects such as hydroelectricity, biomass power, etc.

With the production and supply of clean water, Gelex continued to invest in the remaining items of phase 2, increasing the capacity of Song Da Clean Water Plant to 600,000 m3/day and night, with the goal of completing, testing and putting into use in the fourth quarter of 2024.

With the industrial park real estate segment, Gelex continued to invest in synchronizing technical infrastructure/services in the industrial parks being implemented, prepared to invest in nearly 1,900 hectares of new industrial parks. It implemented surveys and studies for a number of locations to develop about 4,300 hectares of industrial parks/complexes of industrial parks, services, new urban areas in localities with advantageous positions in infrastructure, investment attraction and business ability.

Regarding M&A activities, the group continued to pursue the growth strategy of core businesses through M&A activities (through Gelex and its subsidiaries).

It conducted listing or registration for trading with shares at Gelex Infrastructure and increase capital, registered to list with Gelex Electric shares if necessary on the basis that the parent Group still held the controlling rate, and at the same time, added financial resources to realize strategic investment objectives.