Destini rises 8.5% on MRO contract with AirAsia

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KUALA LUMPUR (July 27): Destini Bhd rose as much as 5 sen or 8.47% to 64 sen after it sealed a deal with AirAsia Bhd on aviation support services.

As at 3.56pm, Destini (fundamental: 1.7; valuation: 1.1) however pared some gains to settle at 62.5 sen, still up 3.5 sen or 5.96%, after 2.55 million shares changed hands.

The maintenance, repair and overhaul (MRO) services provider has entered into a collaboration agreement with AirAsia today under the budget airline's proposed outsourcing of its aviation support services to Destini.

Destini said in a filing to the exchange that the agreement included technical handling, besides MRO, and that each of the initiatives is to be implemented in a phased manner, over the next six to eight months, one after the other.

"The purpose of the agreement is to set the track for the two companies to start the final negotiations and implementation plan to execute the strategic outsourcing exercise," Destini said.

(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.)