CGS-CIMB downgrades Destini, slashes target price to five sen

CGS-CIMB downgrades Destini, slashes target price to five sen
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KUALA LUMPUR (March 30): CGS-CIMB Research has downgraded Destini Bhd to "reduce" at 25 sen and slashed its target price (TP) to five sen (from 28 sen) and said Destini’s financial year ended Dec 31, 2020 (FY20) core net loss of RM129 million was nearly five times the RM27.1 million the research house previously forecast, as the firm’s aviation revenue plunged amid the pandemic.

In a note yesterday, the research house said as the aviation industry is unlikely to return to normal operations in 2021, it now forecast Destini to be in a net loss in FY21F.

“FY22F EPS (its earnings per share forecast) is cut by 51%.

“Destini’s new proposed 20% share placement is critical to replenish its working capital needs. [We] downgrade to 'reduce' with a lower TP of five sen,” it said