Gelex (GEX): In the second quarter of 2020, revenue decreased slightly but profit increased compared to the same period

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(ĐTCK) Vietnam Electrical Equipment Joint Stock Corporation (Gelex, stock code GEX) has released the consolidated financial statements for the second quarter of 2020 and accumulated for the first six months of 2020.

Influenced by Covid-19, Gelex’s net sales of goods and services in the second quarter of 2020 reached VND 3,812 billion, down 6% compared to the same period in 2019. In particular, revenue from transportation services and logistics dropped by 16%, electric equipment manufacturing saw a slight drop of 4%. For the first 6 months of 2020, GEX revenue increased slightly at 3% over the same period.

In terms of revenue structure, there was no significant change compared to the same period last year. This structure will change in the second half of the year when STG is no longer merged, and may have a part from Viglacera.

In particular, revenue from electricity production and trading will grow gradually in the near future when the completion of investment in renewable energy plants as well as doubling the capacity of Song Da Water Plant.

In addition, the full capacity of Ninh Thuan Solar Power Plant from the end of June 2020 will also help increase the revenue of the electricity and water sector by about 10% for the last 6 months of 2020.

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Gelex’s profit before tax in quarter II / 2020 reached VND 391 billion and accumulated in the first 6 months reached VND 529 billion, equivalent to 72% of the profit plan approved by the General Meeting of Shareholders (The plan does not consolidate VGC with profit before tax is 735 billion).

GELEX is a company operating under the model of Investment Capital Management Company (Holdings Company) developing business on two pillars: (1) Industrial production, in particular, including Electrical equipment and construction materials and (2) Infrastructure includes electricity generation, water supply, industrial parks and ecosystems surrounding industrial parks.

Currently, the field of industrial production (electrical equipment) is the core business at GELEX. Besides, GELEX is focusing on investing and developing renewable energy fields such as wind power and solar power.