Updates: Nextnation
Nextnation has incorporated its subsidiary in India - Nextnation Mobitech India Pte Lrd, via its other susididiary Code Wireless. This is in line the group's overseas market expansion strategies to diversify and grow the revenue base.
No doubt, Nextnation has been doing very well in growing overseas revenue with higher revenue recorded from Q to Q. However, the net profit margin of overseas operation remains a big disappointment, with only ~4%. It is totally no match to the net profit margin from Malaysia operation, which is ~30%.
I am not sure the reason and factor behind to low overseas net profit margin. I hope the management will do something to improve it. I hope they will look at the revenue from Malaysia as well, which is decreasing from Q to Q. More attention should be put in Malaysia since it has high net profit margin. Revenue is important, however it is more important to convert the revenue into net profit.
Meanwhile, funlogix has landed China successfully. Ozura has team up with ChinaByte to launch its first and exclusive tournament based mobile gaming community portal. You can see a few Ozura's games in the portal (http://fun.mostar.on).
Nextnation is growing but the share price is not the case. I expect a better performance in term of share price in second half. Private placement should be completed by June and bonus issues should be allocated to the shareholders by this year as well.
Cumulative net profit in this year is RM15.9mil while the full year net profit for last year is RM16.7. With my personal expectation of at least RM6mil net profit for the last quarter, it would translate the full year net profit ~RM22mil. This represents an increase of ~30% in net profit.
It should be a great year for Nextnation ...
2 comments:
with the last tranche of private placement completed at 60 sen (ex bonus price of 40 sen) one would have expected the price to go up. Instead it has dropped 33%! Hopefully it is not in the same boat as nasioncom or transmile. Fundamentally it looks ok except receivables have ballooned to Rm 67 mil. Hopefully all can be collected. Nextnation, pls comment
tan, thx for ur comment. a few of us have concerns over its trade receiveable as well. however, we dont have further info, just like your situation. however, i believe its due to the biz industry/field nX is in. nasioncom and transmile problems are caused by not honest management. a fren of mine who kno tey told me that he is a nice guy. so, i think everything be alrite. unless, we discover any negetive thing and findings .. i dont see any reason to worry about it
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