Gelex Electric targets global standards with ‘Go Global’ product strategy

Gelex Electric (HoSE: GEE) has outlined a “Go Global” strategy focused on internationally competitive products, as it seeks to build a foundation for long-term growth, executives said at its 2026 AGM on Wednesday.

CEO Nguyen Trong Trung said the company maintained strong growth momentum in 2025, driven by consistent strategy and flexible management.

Gelex Electric reported consolidated revenue of over VND25.46 trillion ($966.98 million), up more than 20% year-on-year and exceeding its target by 7%.

Pre-tax profit reached over VND4.26 trillion ($161.85 million), nearly doubling from a year earlier and beating its plan by 21.7%. The firm paid a cash dividend of 55% for 2025.

However, executives said growth from traditional product lines is narrowing, while digital technologies - particularly artificial intelligence - are reshaping industries. The challenge is no longer about short-term cyclical growth, but about creating sustainable momentum for the next 5-10 years.

Chairman Le Ba Tho said improving product quality to meet international standards is central to the company’s strategy.

“We are investing in R&D, technology and production lines to ensure our products meet global certifications and rising standards in safety, durability, performance and environmental requirements,” he said. “Our goal is to provide Vietnamese consumers with products comparable to international offerings and gradually expand into global markets.”

The company’s strategy to 2030 is built on three pillars: developing new products and segments through in-house R&D aligned with international standards; adopting advanced governance models and digital transformation, including AI-assisted decision-making; and fostering a culture of innovation with a technologically skilled workforce with reform mindset.

Gelex Electric has identified 2026 as the starting point for a deeper development phase, with increased investment in research and development expected to underpin long-term growth.

The company targets 2026 revenue of over VND27.24 trillion ($1.03 billion), up about 7%, while pre-tax profit is projected to fall to nearly VND2.71 trillion ($102.72 million) due to the absence of one-off gains from divestments and restructuring. It plans to maintain a cash dividend of 30%.

Management described R&D personnel as a “critical factor” in its long-term strategy. The company has established an R&D center and is attracting experienced experts from large corporations, reflecting the appeal of its development model.

Gelex Electric’s integrated production ecosystem - spanning research, prototyping, manufacturing and commercialization - allows it to shorten product development cycles, optimize costs early, and enhance competitiveness over time.

The company is also advancing plans to adopt AI and digital transformation across operations, aiming to improve efficiency and decision-making.

In parallel, Gelex Electric is preparing a portfolio of electrical equipment and infrastructure solutions for the 2026-2030 period, including smart monitoring systems, data center infrastructure, residential electrical products, protection and switching devices, smart grid solutions, and charging infrastructure.

The firm said it selects technologies and strategic products based on market forecasts, core capabilities, and commercial viability, with a cautious implementation roadmap to ensure sustainable returns.

Shareholders also approved a plan to issue shares from equity at a 75% ratio. If completed, charter capital is expected to rise from about VND3.66 trillion to over VND6.4 trillion ($243.2 million), strengthening financial capacity for long-term investments.

Alongside its business strategy, the company is focusing on building a unified corporate culture in 2026, seen as a key foundation for its transition to a new growth model.

On the Ho Chi Minh Stock Exchange (HoSE), GEE shares closed Wednesday at VD200,700 ($7.62) apiece.