Destini Bhd (+ve)
TRADING of the shares in Destini Bhd (fundamental: 1.3/3, valuation: 1.1/3) triggered our momentum algorithm last Friday for the second time this year.
The stock saw 33.55 million shares traded compared to its 200-day average of 4.93 million. It closed half a sen or 1.43% lower at 34.5 sen, giving it a market capitalisation of RM398.55 million.
Destini announced late last month it won a well abandonment contract from Petronas Carigali Sdn Bhd, for the Pulai-B work order, which it clarified on Aug 2 that it was worth around US$5 million (RM20.45 million).
CGSCIMB Research said in a note that the new job was positive news for Destini, especially for its oil and gas division, as it believed the contract further established Destini as a credible old oilfield decommissioning (OOFD) player. The research firm also noted that the profit margin for an OOFD job was high (about 30% to 40% profit before tax margin) as OOFD jobs were specialised and there were not many such players in the region.