Electrical company, Gelex Electric, plans to shell out approximately $42 million on interim dividends.
In a significant move, Gelex Electric JSC (GEE) has proposed increasing its full-year 2025 dividend payout to 60%, consisting of 40% in cash (VNĐ4,000 per share) and 20% in bonus shares at a 100:20 ratio. This proposed increase is above the initial interim dividend of 30% cash (VNĐ3,000 per share) approved earlier for the first half of 2025, with payment scheduled for September 10, 2025.
The interim dividend, amounting to approximately VNĐ1.1 trillion (nearly $42 million), will be distributed amongst the company's shareholders. Major shareholders like GELEX Group JSC—which holds approximately 240 million GEE shares—are expected to receive around VNĐ720 billion. Another major shareholder, 3C Computer–Communication–Control JSC, with a 5% stake, would receive roughly VNĐ55 billion.
The implications for major shareholders from the proposed dividend increase are a larger cash return and additional bonus shares, enhancing shareholder value for entities holding substantial stakes, such as GELEX Group. If approved, there will be at least one more cash dividend payment in 2025 beyond the initial interim distribution.
Gelex Electric JSC's strong 2025 performance targets and growth plans, announced during shareholder meetings, align with this dividend strategy. The company reported revenue of VNĐ11.8 trillion from January to June 2025, up 30.6% year-on-year. The after-tax profit for the first half of 2025 was nearly VNĐ1.1 trillion, rising 61.9%.
The shareholder list will be fixed on August 21, and the ex-dividend date is August 20. The payment date for the dividend is September 10. The total amount of dividends to be received by GELEX Group JSC and 3C Computer-Communication-Control JSC combined is around VNĐ775 billion.
As of the current trading, GELEX Electric JSC shares are trading around VNĐ124,000. The market capitalization of GELEX Electric JSC is roughly VNĐ45.5 trillion. The 2025 annual general meeting approved a 30% dividend for GELEX Electric JSC. With approximately 366 million shares outstanding, the total dividend disbursement will be around VNĐ1.1 trillion.
This dividend strategy is a testament to Gelex Electric’s confidence in its own performance and a commitment to rewarding its shareholders. The company's growth and financial performance continue to impress, making it an attractive investment opportunity for those seeking dividend-focused stocks.
The dividend strategy of Gelex Electric JSC, which involves an increased full-year 2025 dividend payout of 60%, will provide major shareholders like GELEX Group and 3C Computer–Communication–Control with a larger cash return and additional bonus shares, respectively, thereby enhancing their shareholder value. In addition to the initial interim dividend payment, there will likely be at least one more cash dividend payment in 2025 if the proposed increase is approved. This dividend-focused business approach stems from Gelex Electric’s confidence in its strong financial performance and growth prospects, making it an appealing investment opportunity in the finance and technology sectors.
