KUALA LUMPUR (Dec 31): Nexgram Holdings Bhd announced a net profit of RM3.9 million for its second quarter ended Oct 31, 2015 (2QFY16) against a net loss of RM7,000 a year earlier, on higher sales of video surveillance equipment.

Revenue rose to RM31.01 million, from RM24.98 million, Nexgram’s filing with Bursa Malaysia showed.

"The group’s revenue increased by 15.7%, is mainly due to higher contribution from a subsidiary, which [is] principally involved in a wide-ranging choice of security and video surveillance equipments.

“The significant increase in profit was mainly due to a higher gross profit margin and a better sales mix, whereby a larger share of revenue was earned (from) the segment (with) better margin,” Nexgram said.

For 1HFY16, Nexgram said net profit was higher at RM3.39 million, versus RM1.49 million a year earlier. Revenue rose to RM57.78 million, from RM49.2 million.

For the rest of FY16, Nexgram said it was cautiously optimistic that it would be able to achieve satisfactory performance.

The firm, which also develops properties, said it hoped to focus on growing its existing local and global businesses, "in view of the uncertainties and challenges ahead."

Today, Nexgram shares added one sen or 12% to 9.5 sen at 3:50pm, for a market value of RM178.8 million.

The seventh most-active stock on Bursa Malaysia saw some 23 million shares traded.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)