Thursday 28 Mar 2024
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This article first appeared in The Edge Financial Daily, on September 5, 2016.

 

Destini Bhd (-ve)

SHARES in Destini Bhd (fundamental: 1.8/3, valuation: 0.8/3) closed up 5.5 sen or 7.28% at 81 sen last Friday, with 14.82 million shares traded, far exceeding its 200-day average volume of 1.65 million shares.

Destini provides maintenance, repair and overhaul (MRO) services specialising in safety, survival and rescue equipment for the aviation, marine and oil and gas industries.

On Aug 17, its substantial shareholder Datuk Freddy Lim @ Lim Nyuk Sang sold 31 million shares in the company at 62 sen per share for RM19.22 million. He then ceased to be a substantial shareholder of the company after the share sale. Lim is the chief executive officer of palm oil company Kretam Holdings Bhd.

The company’s net profit for the six months ended June 30, 2016 (1HFY16) was RM16.1 million, over three times the RM4.4 million it achieved in 1HFY15, as revenue doubled to RM190.4 million from RM88.9 million as demand for MRO services grew.

At the current share price, Destini is trading at two times its book value.

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