TIME TO RATE NEXGRAM (0096) : THE NEW GEM IN HEALTHCARE
NEXGRAM HOLDINGS BERHAD is a multinational conglomerate corporation, which is engaged in the research and development of telecommunication software solutions. The business activity of the firm is functioned through Information Technology Services (ICT), Property Investment, and Logistics segments. The ICT segment focuses on telecommunication, security and surveillance, and software development services. The Property Investment segment develops, markets, and manages residential and commercial projects. The Logistics segment includes shipping related activities and services. Geographically it operates through Malaysia and also has a business presence in the overseas market.
What is a new development in the company?
Nexgram has been started to engage in Covid-19 healthcare businesses started as early as on March 2020. In the first phase, Nexgram via its subsisdiaries operation has secured several business opportunities as the authorise distributor to distributing several Covid-19 test kits such as Healgen COVID-19 antibody IgM/IgG screening Rapid Test Kit, the Shanghai Liangrun Biomedicine Technology Co Ltd antibody IgM/IgG Covid-19 diagnostic kits and the Shanghai Fosun 2019-Novel Coronavirus (2019-nCoV) RT-PCR Reagent. The distribution of the Covid-19 test kits are MDA approved to be imported and distributed in Malaysia market and some distribution also done in Indonesian market.
Later, Nexgram also embarked its Covid-19 healthcare businesses by securing an agreement with PT Rafa, an Indonesian firm to distribute personal protection equipment (PPE) to Indonesian market. Its involved sales of the Isolation Gown (2,000,000 pieces/ month) and K-Gloves Nitrile Examination Gloves-Powder Free (500,000 box/month). The supply is for 1 year (started from November 2020) and the agreement can be extended for another 24 months.
Nexgram also via its subsidiaries given approval by several government bodies to use its healthcare online system / app namely TracVirus and SafeTravelPass. These systems /apps has been used in Covid-19 screening test by approved MOH hospitals,clinics and other laboratoris, quarantine procedures and e-certificate for Covid-19 screening and Covid-19 vaccination.
WHAT THE GREAT ACHIEVEMENT. On 24th March 2021, TracVirus has been approved to use by Angkatan Pertahanan Malaysia (APM) and will be integrated in their system namely TracAPM. The TracAPM system was officiated by Prime Minister of Malaysia and the system will be used to digitally to process travellers at the KLIA entry point and can also be used to verify Vaccine Passports to be issued by Malaysia and other countries.
Government agencies and private merchants can integrate their processes and services to the TracAPM Digital System, offering travellers International standard of a digital-tech one-stop travel experience. APM will implement and integrate the TracAPM Digital System with Ministry of Foreign Affairs, the Immigration Department Malaysia, the National Disaster Management Agency (NADMA) and other relevant agencies to ensure secure and safe travel in and out of Malaysia.
All in One, One for All
TracAPM speed up and smoothen the traffic registration process in airports and borders, by digitising all processes under “one system, one control, one digital nation” in conjunction with national security and civil defence watch initiative.
At KLIA this week.
…. Just arrived KLIA just now...TracAPM is compulsory for all arrivals..
Here a list of the new engines of growth for Nexgram:
1. TracVirus and SafeTravelPass link by APM in TracAPM system for all inbound and outbound travelers through Malaysian Borders.
2. Covid-19 Test Kits (Recomended and approved by MKN/MOH and agreement with MTC)
3. Tracvirus SafeTravelPass (Recomended by MKN for used by MOH)
4. Medical gloves and PPE (gown) (contract with MAPU in Indonesia)
5. NexgramBottleVaccine (via a subsidiary operation)
6. RM118 mil Subcontract of the Gua Musang Highway (subcontract in progress)
7. Proposed Development of RM1.6 bilion Medical Complex in Malacca.
Sources: 1. https://tracapm.com/
2. https://nexgram.co/category/news-coverages/
What is the effect of the new development to the company?
From the last two quarter reports, Nexgram showed us some improvement in their financial conditions. The last Q2 2021 showed that Nexgram has been in the black again, after several quarters in the red. The new businesses namely healthcare division and construction division gave the company a new hope in terms of increasing its revenues and a chance to be a profitable company again, as soon as this 2021 financial year.
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REVENUE
|
|||
|
4th QR 2020 |
1ST QR 2021 |
2nd QR 2021 |
REMARKS |
|
RM15,839,000 |
RM12,945,612 |
RM33,293,774
|
QoQ revenue increased 157% due to mainly attributable from manufacturing of medical plastic products, providing Tracvirus Covid-19 related services and distribution of Covid-19 test kits. YoY increased due to (same as above) |
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(LOSS)/PROFIT FOR THE PERIOD
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|||
|
4th QR 2020 |
1ST QR 2021 |
2nd QR 2021 |
REMARKS |
|
(RM59,068,000) |
(RM2,813,692) |
RM1,405,641 |
QoQ profit up. YoY – profit up (was mainly attributed from the new division (i.e. healthcare). |
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SEGMENTAL INFORMATION: REVENUE FROM MEDICAL/HEALTHCARE
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|||
|
4th QR 2020 |
1ST QR 2021 |
2nd QR 2021 |
REMARKS |
|
RM4,052,570
|
RM5,136,582 |
RM29,525,498 |
QoQ revenues up 4 folds. |
How should we rate Nexgram ?
I think we, the current investors of Nexgram and the bankers should look at the current development in the company as a good prospects for the company to be better in the near future financially.
With a list of the new engines of growth running, especially the prospect of healthcare businesses, namely on one of the major achievement in TracAPM related business (related to Nexgram’s TracVirus SafeTravelPass businesses), the valuation of Nexgram (009) should be above RM0.10, and yet the company is trading at RM0.045!
Imagine,
as when the Malaysian borders open, and the statistics showed that in
2019, the total inbound travellers to Malaysia was 26 million and the
average inbound travellers was 2 million peoples, how much revenues can be earned by Nexgram through its TracVirus SafeTravelPass businesses?
https://klse.i3investor.com/blogs/MZM2511/2021-04-24-story-h1564109885-TIME_TO_RATE_NEXGRAM_0096_THE_NEW_GEM_IN_HEALTHCARE.jsp
