Gelex Electric records strong Q2 earnings on robust demand for electrical equipment

Vietnam's Gelex Electric JSC (HoSE: GEE) reported a sharp increase in second-quarter revenue and profit, supported by continued strength in its core electrical equipment manufacturing business as domestic demand remained robust.

The company posted net revenue of over VND9.52 trillion ($362.19 million) in the April-June quarter, up 46.3% from a year earlier, according to its consolidated financial statement.

Net profit rose 30.8% year-on-year to VND740.2 billion ($28.15 million), while profit attributable to the parent company shareholder reached VND705 billion.

For the first six months of 2026, net revenue increased 41.8% from a year earlier to over VND16.72 trillion ($635.98 million), while net profit climbed nearly 28% to nearly VND1.35 trillion ($51.19 million).

Gelex Electric said the increase of more than VND3 trillion ($114 million) in revenue was the main driver behind a VND331.6 billion ($12.61 million) rise in gross profit, offsetting higher selling, administrative and other operating expenses, as well as corporate income tax.

Financial statement notes showed that electrical equipment manufacturing remained the company's dominant revenue source. Revenue from finished goods sales totaled over VND9.49 trillion ($360.97 million) in the second quarter, up nearly 47% from a year earlier and accounting for virtually all revenue from goods sold and services rendered.

Revenue from merchandise trading and services made up only a small share, while no revenue was recorded from electricity generation during the quarter.

The figures indicate that the company's earnings growth was primarily driven by its core manufacturing operations rather than financial income or one-off gains.

The results come as Vietnam accelerates investment in power infrastructure under the adjusted National Power Development Plan VIII. Under the prime ministerial Decision No. 768/QD-TTg, the government estimates investment demand for the country's power transmission network at about $18.1 billion during 2026-2030, with spending focused on 220-kV and 500-kV transmission lines and substations to meet rising electricity demand and integrate new power generation capacity.

Such projects are expected to support demand for products including power cables, transformers, electricity meters and electric motors, which are among Gelex Electric's core businesses through subsidiaries including CADIVI, THIBIDI, MEE, EMIC and HEM.

Beyond transmission infrastructure, expanding investment in industrial parks, data centers and large-scale industrial projects is also expected to drive demand for medium- and low-voltage electrical systems, creating additional market opportunities for electrical equipment manufacturers.

With first-half net revenue of over VND16.72 trillion ($635.98 million) and nearly VND1.7 trillion ($64.65 million) in pre-tax profit, Gelex Electric has completed about 61% of its full-year revenue target and nearly 63% of its 2026 pre-tax profit goal, putting the company on track to meet the year's targets if current growth momentum is sustained.

On the Ho Chi Minh Stock Exchange, GEE shares closed Friday at VND81,300 ($3.09).