Gelex Electric (GEE) Boosts Charter Capital to VND 6,405B via Bonus Share Issue

Overview

Gelex Electric (GEE) has successfully issued nearly 274.5 million bonus shares, increasing its charter capital from approximately VND 3,660 billion to over VND 6,405 billion. The company also announced its 2026 business plan, targeting consolidated net revenue of VND 27,242 billion and after-tax profit of VND 2,121 billion. The capital increase was approved at the annual general meeting on April 8, 2026.

Key Facts

• Gelex Electric issued 274.5 million bonus shares at a ratio of 4:3 (4 rights entitle 3 new shares).
• Charter capital increased from VND 3,660 billion to VND 6,405 billion.
• The issue was completed on May 6, 2026, with 5,060 shareholders participating; 712 fractional shares were cancelled.
• Source of issuance: investment development fund, share premium, and retained earnings from audited 2025 financial statements.
• 2026 consolidated net revenue target: VND 27,242 billion (+7% YoY).
• 2026 after-tax profit target: VND 2,121 billion (-38% YoY).
• Q1 2026 net revenue reached VND 7,097.4 billion (+34.4% YoY), after-tax profit VND 605.8 billion (+24.3% YoY), achieving 26.1% and 28.6% of full-year targets respectively.

What Happened

Gelex Electric (GEE), listed on HoSE, reported the successful completion of a bonus share issuance to increase charter capital from shareholders’ equity. The company distributed nearly 274.5 million shares to 5,060 shareholders, with a 4:3 entitlement ratio. The remaining 712 fractional shares were cancelled. The shares are expected to be transferred in June 2026.

The capital increase was approved at the annual general meeting on April 8, 2026. The company also disclosed its 2026 business plan, targeting consolidated net revenue of VND 27,242 billion, up 7% from 2025, but after-tax profit of VND 2,121 billion, down 38% from the previous year. In Q1 2026, Gelex Electric reported net revenue of VND 7,097.4 billion (+34.4% YoY) and after-tax profit of VND 605.8 billion (+24.3% YoY), representing 26.1% and 28.6% of the annual targets.

Market Context

GEE closed at VND 126,500 on May 13, 2026, up 1.85% with a volume of 2.26 million shares. The stock has been supported by the bonus issue and strong Q1 results. The company operates in the electrical equipment sector on HoSE. The broader market has seen mixed sentiment, but GEE’s capital increase and revenue growth signal continued expansion. However, the sharp profit target decline for 2026 may weigh on valuation.

Strategic Significance

The bonus share issue strengthens Gelex Electric’s equity base, supporting future investment and debt capacity. The 2026 profit target decline of 38% YoY suggests management expects higher costs or lower margins despite revenue growth. The company’s Q1 performance shows strong momentum, but the full-year guidance implies a significant slowdown in the remaining quarters. Investors should monitor whether the profit target is conservative or reflects underlying challenges.

What to Watch

• Q2 2026 earnings release to assess if profit trends align with the full-year target.
• Any updates on capital expenditure plans or new projects funded by the increased equity.
• Changes in debt levels: total liabilities rose 33.8% in Q1 2026 to VND 10,578.1 billion.
• Management commentary on the 2026 profit decline drivers during the next earnings call.
• Share price reaction post-bonus share listing in June 2026.