From the last quarter report, Nexgram (0096) showed us some improvement in their financial conditions. The 2QR 2021 showed that Nexgram has reported more than 100% increased in its revenue and was in the black again, after several quarters in the red. The contribution of revenue from the company's new business namely healthcare division has increased. Other business segments namely the ICT and logistics also generated more revenue for the company. Based on the analysis on the revenue and profit growth recorded in 2QR 2021, I hope it can be useful for the reader to predict the company’s results in incoming 3QR 2021, which expected to be announced on the end of July 2021.
Let us see at Table 1 and Table 2 listed below:
TABLE 1: Financial Results for Six Last Quarter Reports
Based on Table 1, we can see that the revenue for 2QR 2021 (quarterly accounting period ended on 30 March 2021) has increased 157% from RM12.946 million in 1QR 2021 (quarterly accounting period ended on 30 March 2021) to RM33.294 million in 2QR 2021.
The 2QR 2021 report also showed that the company reported an increase in a net profit amount of RM1.406 million compared to net loss of RM2.814 million reported in the 1QR 2021.
TABLE 2: Analysis of the Financial Results for 2QR 2021
|
REVENUE |
|||
|
4QR 2020 |
1QR 2021 |
2QR 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). |
|
PROFIT/(LOSS) FOR THE PERIOD |
|||
|
4QR 2020 |
1QR 2021 |
2QR 2021 |
REMARKS |
|
(RM59,068,000) |
(RM2,813,692) |
RM1,405,641 |
QoQ profit increased. YoY – profit up (was mainly attributed from the new division (i.e. healthcare). |
|
SEGMENTAL INFORMATION: REVENUE AND PROFIT /LOSS FROM MEDICAL/HEALTHCARE |
|||
|
4QR 2020 |
1QR 2021 |
2QR 2021 |
REMARKS |
|
Revenue: RM4,052,570 |
Revenue: RM5,136,582 |
Revenue: RM29,525,498 |
QoQ revenue increased 4 folds. |
|
Profit/(loss)b.t: RM54,766 |
Profit/(loss)b.t: (RM1,079,059) |
Profit/(loss)b.t: RM55,828 |
QoQ profit increase. |
|
SEGMENTAL INFORMATION: REVENUE AND PROFIT /LOSS FROM ICT |
|||
|
4QR 2020 |
1QR 2021 |
2QR 2021 |
REMARKS |
|
Revenue: RM21,821,421 |
Revenue: RM5,946,660 |
Revenue: RM11,955,629 |
QoQ revenue increased. |
|
Profit/(loss)b.t: * (RM24,267,683) |
Profit/(loss)b.t: (RM449,232) |
Profit/(loss)b.t: RM103,954 |
QoQ profit increase. *Note: : A big loss due to suffered loss on disposal of investment property, bad debt written off and fair value loss on investment, done in the 4QR 2020. |
|
SEGMENTAL INFORMATION: REVENUE AND PROFIT /LOSS FROM LOGISTICS |
|||
|
4QR 2020 |
1QR 2021 |
2QR 2021 |
REMARKS |
|
Revenue: RM14,457,254 |
Revenue: RM1,862,490 |
Revenue: RM4,759,379 |
QoQ revenue increased. |
|
Profit/(loss)b.t: RM478,038 |
Profit/(loss)b.t: (RM345,605) |
Profit/(loss)b.t: (RM826,319) |
QoQ loss increased. |
|
SEGMENTAL INFORMATION: REVENUE AND PROFIT /LOSS FROM PROPERTY INVESTMENT |
|||
|
4QR 2020 |
1QR 2021 |
2QR 2021 |
REMARKS |
|
Revenue: RM1,630,835 |
Revenue: RM7,088 |
Revenue: RM7,088 |
QoQ revenue stagnated. |
|
Profit/(loss)b.t: **(RM38,529,418) |
Profit/(loss)b.t: (RM832,188) |
Profit/(loss)b.t: (RM811,776) |
QoQ loss decreased. **Note: A big loss due to suffered loss on disposal of investment property, bad debt written off, fair value loss on investment, impairment on goodwill and write off of land held for property development has been done in the 4QR 2020. |
Sources: Quarterly reports namely 4QR 2020, 1QR 2021 and 2QR 2021.
Increased in Revenue of Nexgram for 2QR 2021
Table 2 was prepared based on the 2QR 2021 results. The analysis shows that the increased in revenue recorded in 2QR 2021 was caused by:
- a substantial increase in revenue for the company’s medical/healthcare segment. QoQ, the revenues in this segment increased more than 400%, due to mainly attributable from manufacturing of medical plastic products, providing Tracvirus Covid-19 related services and distribution of Covid-19 test kits.
- an increased revenue (QoQ) recorded in other segments such as ICT and logistics.
- unchanged revenue in the property segment.
The new businesses activities related to healthcare/medical segment such as manufacturing of medical plastic products, providing Tracvirus Covid-19 related services and distribution of Covid-19 test kits contributed more than 70% increasing in the company’s total revenue in 2QR 2021.
Barring any unforeseen circumstances, I cautiously feel that the medical/healthcare business has potential to show more upside in its revenue in 3QR 2021, as the ongoing Covid-19 pandemic still needs more services related to it. Furtheremore, there could be other additional source of revenue can be generated by Nexgram from services earned from the total of people passing through our borders via its new healthcare business related to TracAPM – SafeTravelPass sevices. The TracAPM - SafeTravelPass services should probably increase the volume of medical/healthcare revenues from quarantine collection services.
Increased in Profit of Nexgram for 2QR 2021
Analysis on Table 2 shows that the increased in revenues recorded in 2QR 2021 generated a chance for certain segments of businesses to record profitable results. For example, the medical/healthcare segment, ICT and logistics has recorded profit for each segment in 2QR 2021 compared to the losses recorded in the previous quarter report.
Barring any unforeseen circumstances, if there could be other probable increase in the revenue from each segment recorded, especially a probable great jump in the revenue from the medical/healthcare businesses, I cautiously feel that the profit for 3QR 2021 expected to increase.
** DISCLAIMER: I wrote this article based on my personal opinion only. All information given should not be considered as an investment advice. It is very important to do your own analysis or consult your qualified financial advisor to get a professional advice. All the information given should not be understood as constituting a buy call or a sell call in any securities transactions.
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