How does ‘big man’ GELEX do business?

GELEX Group was established on July 10, 1990, specializing in industrial production of electrical equipment, building materials, electricity and water infrastructure, investment and development of real estate, industrial parks and surrounding ecosystems. industrial area…

By the end of 2021, GELEX recorded revenue of VND 28,585 billion, up 59%; consolidated pre-tax profit reached VND 2,054 billion, up 72% compared to 2020 (according to GELEX’s fourth quarter 2021 consolidated financial statements).

GELEX’s liabilities are VND 40,680 billion, an increase of 115% compared to VND 18,937 billion at the end of 2020. In which, bank debt accounts for about 50%, the rest is other payables, of which over 6,600 billion. money comes from prepaid buyers and unrealized revenue.

By the end of 2021, GELEX’s total assets will reach VND 61,182 billion, up 125% compared to the beginning of the year. GELEX’s debt ratio and debt-to-total assets ratio in 2021 are 66% and 36%, respectively.

In the market, GELEX is known as a “tycoon” of mergers and acquisitions, having acquired many big brands.

In December 2015, the Ministry of Industry and Trade offered to sell more than 122 million GEX shares of GELEX (equivalent to more than 78.7% of charter capital). This State divestment session attracted a lot of attention from investors, as hundreds of millions of shares were quickly bought by the market. A series of large buy orders with a volume of many millions of shares were placed in a row, showing that investors have prepared in advance.

According to analysts, investors’ interest in GEX is not only in business results, the main field of activity is the production of electrical equipment, but also in the assets that the company owns. At that time, GELEX owned 65% stake in Vietnam Electric Cable Company (CADIVI), 65.16% capital in Electrical Equipment Company (THIBIDI), 65.85% capital in Electrical Manufacturing Company. Hanoi Motor Company (HEM), 51.25% capital in Hai Duong Pump Manufacturing Company and 100% capital in Vietnam Electrical Equipment Company…

Announced information also said that GEX Investment One Member Limited Company, run by businessman Nguyen Van Tuan, born in 1984, native of Ha Nam province, is the largest shareholder with nearly 62 million shares (more than 23.1%). ), followed by MB Investment Fund Management Joint Stock Company (5.04%), Fund Management Company Limited of Vietnam Joint Stock Commercial Bank for Industry and Trade (4.36%), Investment Joint Stock Company and Investment Corporation. Construction of Post Office (3.09%).

On April 6, 2021, GELEX Group announced the completion of increasing its ownership rate to over 50% at Viglacera Corporation (an enterprise formerly under the Ministry of Construction). GELEX registered to buy 22.5 million VCG shares of Viglacera from March 8 to April 6 to increase ownership.

As a result, at the end of the offering, GELEX bought more than 18.5 million VGC shares, bringing the ownership ratio of the Corporation and its related people to more than 225.1 million shares, equivalent to 50.21% of capital. Viglacera charter.

Viglacera is famous for manufacturing and trading construction materials, sanitary ware and is a well-known infrastructure developer of the Northern industrial zone, with the ownership of many industrial parks located in golden locations such as Tien Giang, Tien Giang, and Tien Giang. Son, Yen Phong, Yen Phong expanded (Bac Ninh); Hai Yen, Dong Mai (Quang Ninh); Phong Dien (Thua Thien – Hue), Tien Hai (Thai Binh), Phu Ha (Phu Tho), Dong Van IV (Ha Nam)…

In the market, GEX shares fell in recent sessions. At the end of last week’s trading session, GEX code of GELEX Group Joint Stock Company stood at 34,050 dong/share, down to the floor 6.97%, equivalent to 2,550 dong per share “evaporating”. With more than 851 million shares outstanding, GELEX’s market capitalization has been blown away by more than VND 2,100 billion. This is GEX’s 4th consecutive plunge, causing the price per share to drop by 16.5%, equivalent to a loss of VND6,800.