Nexgram unit gets offer to undertake projects worth RM338.8m

By Surin Murugiah / theedgemarkets.com | March 3, 2017 : 2:00 PM MYT

KUALA LUMPUR (March 3): Nexgram Holdings Bhd's unit Intra Binaraya Sdn Bhd (IBSB) received an offer from Oriental Mace Sdn Bhd (OMSB) to
undertake projects worth US$77 million (RM338.8 million) in total.

In a filing with Bursa Malaysia today, Nexgram said IBSB was issued an offer letter dated Feb 11 to be appointed as the principal contractor to undertake projects
listed in the engineering, procurement and construction contracts (EPC projects) and supplemental agreements entered into between AJ Biologics Sdn Bhd, AJ
Research & Pharma Sdn Bhd and AJ Research Center Sdn Bhd (AJ Group) with OMSB.

The projects are to build a vaccine manufacturing plant and a pharmaceutical and neutraceutical manufacturing plant, as well as to construct a research and
development laboratory and formulation development centre in Bandar Baru Enstek, Seremban.

Nexgram said OMSB had previously issued a letter of offer in respect of the EPC projects to Versatile Creative Bhd for the purpose of appointing the main
contractor on May 26, 2016.

"The letter of offer was subsequently voided and terminated by OMSB with effect from Jan 19, 2017," it said.
It said the duration of the EPC projects shall be up to 24 months upon the signing of the definite agreement.

Nexgram bags RM338m job to build plants and lab

The Star, Friday, 3 March 2017 | MYT 4:23 PM

KUALA LUMPUR: Nexgram Holdings Bhd's unit has bagged a US$77mil (RM338.80mil) contract to build two plants and a laboratory in Bandar Baru Enstek, Negeri Sembilan.

It said on Friday that its unit Intra Binaraya Sdn Bhd had received a letter of award dated Feb 11 from Oriental Mace Sdn Bhd, which was the principal contractor.

Oriental Mace is the existing engineering, procurement and construction (EPC) contractor for the project to build a vaccine manufacturing plant, a pharmaceutical and neutrical manufacturing plant and a research and development laboratory.

Oriental Mace previously issued a letter of offer for EPC projects to Versatile Creative Bhd to be the main contractor on May 26, 2016.

Under the agreement, Oriental Mace as the EPC principal contractor had to settle all outstanding payments owed to the contractors or any parties while undertaking the projects.

Oriental Mace also had to settle and pay all the outstanding payment prior to the execution of the letter of offer.
“The duration of the EPC projects shall be up to 24 months upon the signing of the definite agreement,” it said.

PPB, Mudajaya, PUC Founder, Scomi Engineering, IHH, Sumatec, Hock Seng Lee, Nexgram and
Tiger Synergy

By theedgemarkets.com / theedgemarkets.com | March 4, 2017 : 1:11 AM MYT

Translated by Google Translator:

Nexgram Holdings Bhd's unit Intra Binaraya Sdn Bhd (IBSB) received an offer from Oriental Mace Sdn Bhd (OMSB) to undertake projects worth US$77 million (RM338.8 million) in total.

Nexgram said IBSB was issued an offer letter dated Feb 11 to be appointed as the principal contractor to undertake projects listed in the engineering, procurement and construction contracts (EPC projects) and supplemental agreements entered into between AJ Biologics Sdn Bhd, AJ Research & Pharma Sdn Bhd and AJ Research Center Sdn Bhd (AJ Group) with OMSB.

The projects are to build a vaccine manufacturing plant and a pharmaceutical and neutraceutical manufacturing plant, as well as to construct a research and development laboratory and formulation development centre in Bandar Baru Enstek, Seremban.

Came across this at their company's website. it does say that it wont have any material impact in their upcoming financial ending but it should be positive in the next financial. Interesting counter. 

Quote taken from : https://nexgram.co/2020/03/31/nexgram-industries-enters-distribution-agreement-for-mda-approved-covid-19-medical-supplies-31-mar-2020/

31 March 2020 – Nexgram Holdings Berhad wishes to announce that Nexgram Industries Sdn. Bhd., the wholly-owned subsidiary of the Company had entered into an Exclusive Master Distributorship Agreement with Tri-G Technologies Sdn. Bhd. (“Tri-G”) to carry out the business of procurement and distributing Tri-G’s medical supplies, including medical devices and Coronavirus test kits.

Malaysia Medical Device Authority (MDA) special access approved items include COVID-19 IgM/IgG rapid test kit which is used for qualitative detection of the IgM and IgG antibodies of COVID-19 in human serum/plasma or whole blood. Tests typically take two (2) to fifteen (15) minutes to complete. The distribution is dedicated to medical centres only and all test are advised to be conducted by a licensed phlebotomist, medical practitioner or professionals.

According to Tri-G, other medical devices such as quantitative RT-PCR (Reverse Transcription Polymerase Chain Reaction) or RT-qPCR (Quantitative Reverse Transcription PCR) machines, reagents and test kits, ICU ventilators, and PPE are some of the medical supplies facing global supply shortage.

The medical supplies distributed to public hospitals are dedicated to Nexgram Covid-19 AID Team, contributing back to Covid-19 pandemic relief.

MDA is the government agency entrusted to serve the Malaysia medical device’s industry. It is a federal statutory agency under the Ministry of Health Malaysia to implement and enforce the Medical Device Act 2012 (Act 737). The main objectives of the Act are to address public health and safety issues related to medical devices and to facilitate medical device trade and industry.

Tri-G is a MDA licensed medical supplies distributor with GDPMD certificate.

The Agreement is not expected to have a material effect on the net assets, gearing or earnings of the Company and its subsidiaries for the financial year ending 31 July 2020.

About Nexgram Industries

Nexgram Industries Sdn Bhd (NISB) is a wholly owned subsidiary of Bursa Malaysia listed Nexgram Holdings Berhad (NEXGRAM). NEXGRAM is a diversified investment company having businesses from IT, security and surveillance, logistics, property and various industries.

NISB invest in industrialisation 4.0 business which strives in automation, big data, and artificial intelligence. The company currently provide industrial cable solution for the telecommunication market, as well as carrying master distributorship for Electronic Vehicle (EV) charging solution in the South East Asian markets via NISB wholly owned subsidiary Nexgram Zhida New Energy Development Sdn Bhd. Some of Zhida technology clients include Tesla, Volvo, SAIC, JAC, Nissan, Porsche and SVW.

NExgram is involve in vaccine bottilng bussiness... Tomorow onwards should have good price movement upward inline with uptrend vaccine and healthcare theme since last week.. Don't miss out

PENNY  is funny

1.  The new business 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. The incoming 3QR 2021 has a potential to show more upside in it revenue.

2.  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 feel that the profit for 3QR 2021 has a potential to increase.

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 June 2021.

Let us see at Table 1 and Table 2 listed below:

TABLE 1: Financial Results for the Last Two Quarter Reports

Sources: Quarterly reports namely the 1QR 2021 and 2QR 2021.

Based on Table 1, we can see that the revenue for 2QR 2021 (quarterly accounting period ended on 31 January 2021) has increased 157% from RM12.946 million in 1QR 2021 (quarterly accounting period ended on 31 October 2021) to RM33.294 million in 2QR 2021.

The 2QR 2021 report also showed that the company reported an increase in profitability by recorded a net profit amount of RM1.406 million in 2QR 2021 compared to a net loss of RM2.814 million reported in the 1QR 2021.

                                   TABLE 2: Analysis of the Financial Results for 2QR 2021

Sources: Quarterly reports namely 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:

1. 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.
2. an increased revenue (QoQ) recorded in other segments such as ICT and logistics.
3. unchanged revenue in the property segment.

The new business 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.  Furthermore, there could be other potential 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 has a potential to increase.

Updates on Nexgram's 3QR 2021 results:

MY PERSONAL NOTES BASED ON THE 3QR 2021 REPORT:

1.      The approved capital reduction exercise was not yet been taken into account in the 3QR 2021. Probably will be done in 4QR 2021 accounts.

2.      No specific report on the progress of the revenue from Indonesian, RAFA Agreement on the medical gloves and gown.

NOTABLE NOTES FROM THE 3QR 2021 REPORT:

1.     Healthcare continues to progress well, with government project SafeTravelPass COVID-19 entry-registration, payment and management of Quarantine-Station and  government services contributing positively in current financial year.

My personal comment: 

It’s a POSITIVE NOTE, as the company recognized there is a contribution from TracAPM – SafeTravelPass in the current financial year. The system are in a business and generating revenue to Nexgram, instead of the Malaysia is currently closing her borders.

2.    COVID-19 tests partnership with government is looking at positive return in coming quarter after much capital investment in last two (2) quarters, in view of taking part of mass screening assignment engaged with government health facilities.

My personal comment: 

It’s a POSITIVE NOTE, as the company recognized that in the last two quarters, the cost from a big capital investment has pressured the profitability of the company quarters, but the company expected more positively on its profitability in incoming quarters, thanks to Nexgram’s involvement in the mass screening of Covid-19 assignment engaged with the government health facilities.

3.        Government project capital investment continue to weight on current quarter which is normal for concession early investment.

My personal comment: 

It’s a NEGATIVE  NOTE for short term, as the company recognized that the big capital investment done on the secured government project gave more cost to the company and affected the profitability in the last quarter.

4.        The Group other healthcare segment is expanding on capacity resulted in further cost. The healthcare segment had experienced lower margin and recent success in contracts shall expect to contribute to bottom line in coming quarter.

 My personal comment: 

It’s a NEGATIVE  NOTE, as the company recognized further cost will be occurred cause by further expanding in its healthcare business. In addition, will the added cost and the current lower margin of healthcare business will give more pressure on the company’s profitability in near future?

https://nexgram.co/2021/07/15/nexgrams-quarantine-management-system-for-inbound-travellers-officially-online-15-jul-2021-the-edge/

The company has been delivering negative ROE since 2017. It is definately not a fundamental play.

Loss marking since 2017. This is more for the speculators