Nextnation: From a telco service provider to a developer?

Nextnation seems to be moving places recently, or so it seems? They announced a partnership with PT Inovisi just a month ago, got invested with some additional RM4.5 million raised from the Indonesian company during the same month. Now, they are into development?

Summary of announcements on 28 March 2012

However, I have one question - just how are they going to do that, beats me...Yes, if you look above, they are raising some funds but this is a project with some RM320 to RM400 million Gross Development Value.  
Although they did not say that they are turning themselves into a developer, How do I look at it as a development project rather than a company which is trying to build its own office? Look at the table above for source of fund for development - to be financed by off-takers / tenants. What does that tell you? Also why such a big piece of land?

FYI, from the lack of highlights which I complained about, here I compiled some financial information about the company.

Look at the revenue trend - not much trend aren't they? Cash / borrowings deteriorated further from 2006 to 2012. In fact the latest results as at 31 October 2011, before they raised some RM4.5 million from PT Inovisi, the cash level RM3.05 million) against borrowings was 27%. Receivables are really bad as well with the latest  Days collectible at 326 days!

In today's announcement, they proposed for fund raising of around RM15.5 million from private placements diluting the company by another 30%. I am not sure whether the fund raising can be successful, but this is probably why the company's share price had a run to above RM0.10 as they cannot raise funds from private placement if the price of the shares are below par value - unless they agree to a discount. Whatever it is - here I have 2 questions:

- What is it a company like Nextnation is going to do with a 5.9 acre of industrial land;
- If it is turning or diversifying from a mobile service provider into a developer can they handle a project with a Total GDV of RM400 million? - and why Cyberjaya?

Or are they trying to reverse what Nokia did, from a small timber concern into a mobile company, since Nokia is not doing so well nowadays? It seems the trend nowadays for IT companies is to turn themselves into property owners...

[29 Mar 2012] Note that the receivables increased to RM60.4 million for its 3rd quarter 2012 results announced today. Wonder how come it is so difficult to collect from Telcos.

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