VIS Rating Affirms GELEX (GEX) at 'A' With Positive Outlook

Overview

VIS Rating (CTCP Xếp hạng Tín nhiệm Đầu tư Việt Nam) has maintained the long-term issuer credit rating of CTCP Tập đoàn GELEX (HOSE: GEX) at ‘A’ with a Positive outlook, according to a report dated 26 October 2026. The affirmation rests on expected profit and operating cash flow growth across GELEX’s diversified core segments and on an anticipated improvement in leverage and debt-service metrics over the next 12-18 months. The rating is directly relevant to GEX and to its listed electrical-equipment subsidiary GELEX Electric (GEE), which the agency identifies as the group’s principal growth driver.

Key Facts

• VIS Rating affirmed GELEX’s long-term issuer rating at ‘A’ with a Positive outlook in its 26 October 2026 report.
• GELEX was first rated ‘A’ in October 2024; the outlook was raised from Stable to Positive in January 2026.
• 9M 2026 net revenue reached VND 39,158B, up 40.5% year on year, equal to 87.6% of the full-year revenue plan.
• 9M 2026 pre-tax profit reached VND 3,931B, up 14.2%, equal to 108.8% of the full-year pre-tax profit target.
• VIS Rating forecasts a 23% compound annual revenue growth rate for GELEX over 2026-2027.
• The electrical equipment segment, led by GELEX Electric (GEE), posted 40% revenue growth and 25% EBITDA growth year on year in 1H 2026.
• Consolidated borrowings rose by VND 6,500B in 1H 2026, mainly for working capital and long-term investments, per VIS Rating.

What Happened

VIS Rating published its updated credit assessment of GELEX on 26 October 2026, keeping the long-term issuer rating at ‘A’ and the outlook at Positive. The agency said the decision reflects expectations that GELEX will sustain high profit and operating cash flow growth, supported by core businesses that are large in scale and diversified. It also expects the group’s financial leverage and debt-servicing capacity to improve over the coming 12-18 months. VIS Rating assessed GELEX’s business scale as very strong and its business profile as strong.

The assessment draws on GELEX’s recently published financial statements. For the first nine months of 2026, the group reported net revenue of VND 39,158B, up 40.5%, and pre-tax profit of VND 3,931B, up 14.2%, completing 87.6% of the annual revenue plan and 108.8% of the pre-tax profit plan. VIS Rating continues to view electrical equipment as the main growth engine, citing power-infrastructure investment demand and the competitive position of GELEX Electric (GEE), particularly in electrical cable. Construction materials profit continued to grow and industrial park leasing remained a positive contributor. The report also noted that consolidated borrowings increased by VND 6,500B in 1H 2026, mainly to fund working capital and long-term investments; the filing does not disclose the full-year leverage target.

Market Context

GEX closed at VND 23,100 on 28 October 2026 on HOSE, while subsidiary GEE closed at VND 69,200. The rating affirmation arrives with GEX having already exceeded its full-year pre-tax profit plan after nine months, a profile that typically supports credit sentiment more than near-term equity re-rating. GELEX sits across industrial goods, electrical equipment, construction materials and industrial real estate, so its credit standing is read as a partial proxy for domestic power-infrastructure capex and for the funding conditions facing diversified Vietnamese industrial groups. The Positive outlook is a credit signal, not an earnings revision, and should be weighed alongside the group’s rising borrowings.

Strategic Significance

For long-term investors, the value of the ‘A’ affirmation lies in funding access rather than in the headline itself. A stable investment-grade-equivalent rating with a Positive outlook lowers the risk premium GELEX faces when refinancing the VND 6,500B of borrowings added in 1H 2026 and when raising capital for power-infrastructure and industrial park projects. The rating also formalises the group’s structure: GEE’s cable franchise is the cash-generative core, while construction materials and industrial park leasing provide diversification that cushions cyclical swings. The key test is whether the 23% revenue CAGR forecast converts into deleveraging; profit growth of 14.2% lagging revenue growth of 40.5% shows margin mix and interest costs still matter.

What to Watch

• Full-year 2026 audited results and whether pre-tax profit exceeds the annual plan after nine-month completion of 108.8%.
• Consolidated borrowings and the net-debt-to-EBITDA trajectory in the 2026 annual report, following the VND 6,500B 1H increase.
• GELEX Electric (GEE) segment revenue and EBITDA growth in 2H 2026 versus the 40% and 25% recorded in 1H.
• Any VIS Rating outlook or rating action, with the next scheduled review not disclosed in the article.
• Power-infrastructure investment disbursement and industrial park leasing occupancy as demand indicators for the core segments.