Credit Rating Result
Hanoi, 06 January 2026 - Vietnam Investors Service and Credit Rating Agency Joint Stock Company (VIS Rating) has affirmed Gelex Group Joint Stock Company (GEX)’s A long-term issuer rating.
At the same time, VIS Rating has revised the rating outlook to positive from stable.
SUMMARY OF KEY FACTORS
| Extremely Weak | Very Weak | Weak | Below- Average | Average | Above- Average | Strong | Very Strong | |
|---|---|---|---|---|---|---|---|---|
| Stand-alone Assessment | ▲ | |||||||
| Scale | ▲ | |||||||
| Business Profile | ▲ | |||||||
| Profitability & Efficiency | ▲ | |||||||
| Leverage & Coverage | ▲ |
| Other consideration | Negative | Stable | Positive |
|---|---|---|---|
| Liquidity | ▲ |
| Low | Moderate | High | Very High | Extremely High | |
|---|---|---|---|---|---|
| Affiliate support | ▲ | ||||
| Government support | ▲ |
Rating rationale
The affirmation of GEX’s A rating and the change to a positive rating outlook are driven by our expectation that GEX‘s revenue and operating cash flow will continue to strengthen over the next 12-18 months, underpinned by its core electrical equipment and construction materials businesses.
GEX is an investment holding company with two main subsidiaries, namely GELEX Electric (GEE) – comprising the group’s electrical equipment business; and GELEX Infrastructure (GEX Infra) – comprising construction materials, real estate, and utilities businesses.
During 2024 – 9M2025, GEX achieved robust revenue growth of nearly 15%, exceeding the compounded annual growth rate of 3% in 2021 – 2023. EBITDA margin (Earnings Before Interest, Taxes, Depreciation, and Amortization) improved to around 23%, from 22%. Strong profitability and operating cash flows drove improvements in the group’s EBIT (Earnings Before Interest, Taxes)/Interest expense ratio at 4.5–5.0x and CFO (Operating Cash Flow)/Debt coverage ratio at 15-20%.
GEX’s electrical equipment business was a major contributor to the recent revenue and profit growth, supported by market share gains that reinforced its leadership position through new product development, market expansion, and group-level production optimization. Cadivi – GEE’s key subsidiary in cable manufacturing – accelerated penetration into northern Vietnam from early 2024, securing a significant presence and lifting its nationwide market share. This contributed to GEE’s revenue increasing 27% in 2024 and 25% in 9M2025, and EBITDA margin widening from around 13% to above 20% by 9M2025.
We expect steady growth for this business segment, supported by strong demand for electrical products amid robust public and private investment in power infrastructure nationwide.
For GEX Infra, we expect construction materials to benefit from stronger margins driven by the recent real estate market recovery, reduced competition from imported construction glass after Vietnam’s July 2025 anti-dumping investigation, and sales channel restructuring.
Utilities, with EBITDA margins above 70%, will strengthen further after it completes the plan to double water supply capacity by Q1 2026.
The strong demand for industrial infrastructure will support robust leasing activity and cash flow for the industrial real estate business.
GEX Infra plans to begin market sales of its new residential real estate project in Hai Phong city, ANmaison – a joint development with Frasers Property (Singapore), comprising low-rise and high-rise components, in Q1 2026. GEX Infra also intends to continue expanding its land bank and developing new projects.
Over 2026-2027 period, we expect GEX’s annual revenue growth to average 14%, and EBIDTA margins to stay above 20%.
Management intends to increase investment in new projects in 2026-2027, including industrial parks, residential real estate, an Office–Retail–Hospitality complex in Hanoi, and Song Da’s water plant expansion. We expect the additional capital expenditure to raise the group’s total debt from 2025 levels and drive a mild deterioration in its interest coverage.
Stronger operating cash flow from its core manufacturing business, supported by successful residential project sales and timely management of collections and payables, will be key to stabilizing GEX’s leverage profile, ensuring groupwide liquidity remains well-managed, and positioning GEX’s rating for an upgrade. Conversely, delays in new project launches or handovers, or aggressive growth in new project development, could pressure operating cash flows and liquidity.
Factors That Could Lead to an Upgrade/Downgrade
Rating methodology
Non-Financial Corporates Rating Methodology.
For more detailed information, please refer to our full credit rating methodology at: here
Credit rating history
| Date | Rating type | Rating | Outlook | Action |
|---|---|---|---|---|
| 06 January 2026 | Long-term issuer credit rating | A | Positive | Update |
| 25 October 2024 | Long-term issuer credit rating | A | Stable | First-time assignment |
Regulatory disclosures
For further specification of VIS Rating's Rating Symbols and Definitions, please see: here
GEX’s ownership stake in VIS Rating: 0%
The ownership ratio of GEX held by VIS Rating’s staff: 0%
Cases in which analysts and credit rating council members cease their participation in the credit rating contract before the contract expires and the reason for the cessation: 0
VIS Rating adheres to a stringent independence policy by current regulations governing the provision of credit rating services in Vietnam. This commitment extends to compliance with our conflicts-of-interest policy, aiming to uphold objectivity and independence when expressing opinions on credit ratings.
The rating has been disclosed to the rated entity or its designated agent(s) and issued with no amendment resulting from that disclosure.
This rating is solicited.
Regulatory disclosures contained in this rating announcement apply to the credit rating and, if applicable, the related rating outlook or rating review.
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Analyst & Committee
Primary Analysts
Rating Committee Members
Credit Rating Announcement Number
Public credit rating announcement no: VN0100100512-002-060126
Disclaimer
VIS Rating’s credit ratings, assessments, other opinions, and publications are not intended for use by non-professional investors and it would be reckless and inappropriate for non-professional investors to use VIS Rating’s credit ratings, assessments, other opinions or publications when making an investment decision. If in doubt you should contact your financial or other professional adviser.