Nexgram Holdings Berhad Q2 2026 Unaudited Financial Results, Performance Review & Corporate Updates

Nexgram Holdings Berhad Q2 2026 Financial Results: In-Depth Investor Analysis

1. Overview and Key Financial Highlights

Nexgram Holdings Berhad has released its unaudited interim financial report for the second quarter ended 31 January 2026. The Group displayed improvements in profitability with notable strategic corporate actions and business developments that investors should closely monitor.

Revenue: RM12.55 million for the quarter; RM29.79 million for the six-months ended 31 January 2026.
Gross Profit: RM4.26 million for the quarter; RM8.43 million year-to-date.
Net Profit attributable to equity holders: RM1.05 million for the quarter; RM1.93 million year-to-date.
Basic Earnings Per Share: 0.11 sen for the quarter; 0.21 sen year-to-date.
Net Assets Per Share: 8.01 sen as at 31 January 2026.
Significant Increase in Non-Controlling Interests: RM87.7 million (up from RM18.8 million as at 31 July 2025), reflecting recent acquisitions and RCPS issuances.
Profit from Associates: RM1.60 million for the six-month period, indicating healthy contributions from investment holdings.

2. Strategic Developments and Corporate Actions

2.1 Acquisition of GAD Energy Sdn. Bhd.

During the quarter, Nexgram’s subsidiary acquired a 70% stake in GAD Energy Sdn. Bhd., a company focused on the EPCC (Engineering, Procurement, Construction, and Commissioning) sector. This acquisition is expected to solidify Nexgram’s position in the renewable energy and infrastructure space, granting in-house EPCC capabilities and enhancing eligibility for large-scale government and private renewable energy projects.

Importantly, the acquisition is supported by a profit guarantee, ensuring a minimum cumulative profit contribution of RM20 million over four years. This is a price-sensitive development as it provides a dependable earnings base and could positively impact future valuations and investor sentiment.

2.2 Private Placement Exercise

The Company successfully completed a three-tranche private placement, raising a total of RM1.256 million:

1st tranche: 44 million shares at RM0.0145/share, raising RM638,000.
2nd tranche: 26 million shares at RM0.0136/share, raising RM353,600.
3rd tranche: 18.857 million shares at RM0.0140/share, raising RM263,998.

Proceeds were allocated to: working capital (RM654k), professional/service provider payments (RM502k), and private placement expenses (RM100k). These placements have increased the Company’s cash reserves, supported working capital, and improved financial flexibility.

2.3 Status of Corporate Proposals

Debt Settlement and Bonus Warrants: The Company has undergone several iterations of a proposed debt settlement scheme, involving the issuance of new shares and free warrants to settle RCPS and creditor debts.

Key developments include:

Revamping of agreements and submission of listing applications for new shares and warrants issuance.
Engagement of new adviser (TA Securities Holdings Berhad) after terminating Malacca Securities’ services.
As of the report date, no further official announcement has been made regarding the finalization of the proposals.

Shareholders should closely monitor future announcements regarding the implementation of these proposals, as they may have a significant effect on the Company’s capital structure and shareholder value.

3. Auditor’s Qualified Opinion – Potential Risks

The Company’s most recent audited financial statements (for the period ended 31 July 2025) received a qualified opinion from the external auditors. The qualification pertains to the inability to fully verify the recoverable amounts of:

Prepayment for hotel management rights: RM11.3 million
Equity investment in Wings By Croske Resort Langkawi Sdn. Bhd.: RM23.9 million

This is primarily due to pending legal transfer of hotel management rights/lease and uncertainty in long-term financial projections. While the rest of the financial statements are deemed to reflect a true and fair view, investors should be aware that these unresolved matters may affect future asset valuations and could have an impact on share price should developments arise.

4. Legal and Litigation Developments

The Group was involved in a suit with Perbadanan Bioteknologi Melaka. The case saw several delays, amendments, and ultimately, both the main claim and counterclaim were withdrawn by consensus on 15 December 2025, with the High Court striking out both with no order as to costs.

This resolution removes a potential legal overhang and provides clarity on contingent liabilities for investors.

5. Business & Segmental Performance

ICT Malaysia Division: Contributed 100% of the Group’s revenue for the current period. This segment remains the primary profit driver.
Property Investment and Investment Holding: Minimal to negative contributions to profit before tax.

The Group’s performance for the quarter was mainly driven by the ICT division, prudent cost management, and contributions from associates. Despite a 27% quarter-on-quarter drop in revenue (RM12.55m vs. RM17.24m in Q1), better cost controls led to a higher profit from operations (RM2.41m vs. RM2.01m in Q1). Net profit attributable to shareholders rose by 19% quarter-on-quarter.

6. Financial Position, Borrowings, and Liquidity

Total Assets: RM218.77 million (as at 31 January 2026), up from RM144.42 million at the last audited period, mainly due to increased intangible assets and goodwill following acquisitions.
Shareholders’ Funds: RM78.32 million; Non-Controlling Interests: RM87.71 million.
Borrowings: Total secured borrowings of RM12.6 million, all in Malaysian Ringgit, with no defaults reported.
Cash & Cash Equivalents: RM11.92 million as at 31 January 2026.
Contingent Liabilities: RM10 million corporate guarantee granted to subsidiaries.

7. Outlook and Forward Guidance

The Board remains cautiously optimistic for the financial period ending 31 July 2026. The Group is strategically aligned to benefit from Malaysia’s national growth agendas, including the National Energy Transition Roadmap (NETR), Renewable Energy Roadmap (MyRER), the Digitalisation Agenda, and the Data Centre Framework.

The recent acquisition of GAD Energy is seen as transformative, potentially enabling the Group to participate in larger-scale renewable energy projects. The profit guarantee tied to this acquisition provides a level of earnings visibility and may underpin investor confidence.

The Group continues to focus on its core operations in ICT, security, surveillance, digital services, hospitality, and green development, while building internal capabilities for the next economic cycle. The Board believes that its diversified business model, alignment with national priorities, and enhanced technical capabilities position Nexgram for sustainable growth and value creation.

8. Other Notable Items for Shareholders

No dividends have been declared for the current quarter.
No off-balance sheet financial instruments as at reporting date.
No revaluation of property, plant, equipment, or investment properties during the quarter.
No significant post-quarter events reported.

Concluding Remarks

Key price-sensitive takeaways for shareholders:

Resolution of the major litigation removes legal overhang.
Significant increase in non-controlling interests and asset base, reflecting recent acquisitions and RCPS issuance.
Ongoing and pending corporate proposals (debt settlement, bonus warrants, business diversification) could impact the capital structure and share price upon finalization.
Auditor’s qualified opinion on specific investments may affect future asset recoverability and should be watched closely.
Profit guarantee from GAD Energy acquisition provides a foundation for earnings stability in the renewable energy segment.
Improved cost management and focus on national development agendas may support future growth and share price appreciation.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell securities. Investors are advised to conduct their own research or consult a qualified financial advisor before making investment decisions. All information is derived from Nexgram Holdings Berhad’s official unaudited interim financial report for the second quarter ended 31 January 2026.