Credit Rating Result
Hanoi, 26 October 2026 – Vietnam Investors Service and Credit Rating Agency Joint Stock Company (VIS Rating) has affirmed GELEX Group Joint Stock Company’s (GEX) A long-term issuer rating with a positive outlook.
The rating and outlook are effective from the date of this announcement and remain in effect unless superseded by a subsequent rating action. Please visit https://visrating.com/rating-results for the latest rating update.
SUMMARY OF KEY FACTORS
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Weak | Below- Average |
Average | Above- Average |
Strong | Very Strong |
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| Leverage & Coverage | ▲ |
| Other consideration | Negative | Stable | Positive |
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| Liquidity | ▲ |
| Low | Moderate | High | Very High | Extremely High | |
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| Affiliate support | ▲ | ||||
| Government support | ▲ |
Rating rationale
The affirmation of GEX’s A rating and positive outlook reflects our expectation that GEX will sustain strong earnings growth and operating cash flow across its large-scale and diversified core businesses, and gradually improve leverage and coverage over the next 12–18 months.
GEX is an investment holding company with two main subsidiaries. GELEX Electric (GEE) operates the group’s electrical equipment businesses, while GELEX Infrastructure (GEL) holds its construction materials, real estate, utilities and other infrastructure investments.
We first revised the rating outlook to positive in January 2026, reflecting our expectation of sustained improvement in GEX’s revenue and operating cash flow, underpinned by its core electrical equipment and construction material business.
GEX posted strong growth momentum in 1H2026, with revenue increasing 40% YoY and EBITDA expanding 15% YoY. We expect the momentum to extend through 2027, supporting 23% revenue CAGR in 2026–2027 and EBITDA margins of 17%- 18%, as strong demand, solid market position, and effective risk-mitigation measures mitigate input cost pressure across its core businesses.
We expect electrical equipment to remain a key growth driver for GEX, underpinned by robust investment in power infrastructure and GEE’s solid market position, including a leading position in power cables. The segment delivered 40% YoY revenue and around 25% EBITDA growth in 1H2026 despite higher copper prices, supported by its ability to partially pass through cost increases.
Construction materials maintained strong profit growth as expected, driven by higher sales following sales policy restructuring and a recovery in construction glass margins following anti-dumping measures on competing imported products.
Strong industrial park leasing activity supported profit growth despite margin pressure from higher development costs at new parks, with signed leasing area in 1H2026 reaching the full-year 2026 target of 125 ha.
In 1H2026, GEL accelerated investment in affiliates, mainly into Gia Binh International Airport and a 113-ha residential real estate project in Dong Nai.
The group’s consolidated debt increased by VND6.5 trillion in 1H2026, mainly to fund working capital needs and accelerated long-term investments. We expect GEX to gradually deleverage over the next 12-18 months as investment moderates and working capital needs remain stable. Along with earnings growth, this should lower Debt/EBITDA to around 3.3x on average in 2026–2027 from 3.9x in June 2026.
Debt-servicing capacity should also improve as stronger revenue and reduced securities investments lift operating cash flow, raising CFO/Debt to around 10%. Management expects to raise VND2.8 trillion from GEL’s private placement to external investors in Q4 2026-Q1 2027 to enhance debt serviceability.
We expect GEX’s groupwide liquidity to be well-managed, supported by stronger operating cash flow, sizable liquid assets and established bank access. GEX also has flexibility to defer or moderate new investments if market or funding conditions weaken, supporting its financial discipline and liquidity position.
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 |
|---|---|---|---|---|
| 26 October 2026 | Long-term issuer credit rating | A | Positive | Affirm |
| 06 January 2026 | Long-term issuer credit rating | A | Positive | Outlook change |
| 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: VN0100100512-003-060126
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.