About Destini Bhd

Destini Berhad is a Malaysia-based investment holding company. The Company is engaged in the provision of management services. The Company operates through two segments: Maintenance, repair, overhaul and training, and Recycling of waste.

The Maintenance, repair, overhaul and training segment is engaged in the maintenance, repair and overhaul of aviation, marine, automobile and safety and tabular handling equipment, and provides training for the use of safety equipment.

The Recycling of waste segment is engaged in extraction and recycling of waste tires for the production of carbon black, diesel fuel and scrap metal.

Its subsidiaries include Destini Prima Sdn. Bhd., Destini Armada Sdn. Bhd., Destini Fire Safety Sdn. Bhd., Destini Engineering Technologies Sdn. Bhd., Destini Info Tech Sdn. Bhd., Destini Australia Pty. Ltd., Destini HRTC Sdn. Bhd., Destini Armada Pte. Ltd., Destini Oil Services Sdn. Bhd., Detrac Sdn. Bhd., Green Pluslink Sdn. Bhd. and Land Auto Technology Sdn. Bhd.

The Board of Directors of Destini consist of directors with very strong social and corporate background. Among them are:

• Tan Sri Dato’ Sri Rodzali Bin Daud, currently independent, non-executive chairman of Destini, was formally the Chief of Royal Malaysian Air Force (RMAF)
• Dato’ Rozamujib Bin Abdul Rahman, currently the Group MD & Executive Director is the Co-owner of R Capital and Caprice Development at the same time UMNO Youth Chief for Arau Division in Perlis and Treasurer of Pergerakan Pemuda UMNO Malaysia
• Dato' Sri Dr. Mohmad Isa bin Hussain, non-independent and non-executive director of Destini is also the Deputy Secretary General of Treasury (investment) at Ministry of Finance, as well as being and independent non-executive director in many government linked corporation such as Pelaburan Hartanah Berhad, Telekom, POS Malaysia, Malaysia Airport Holdings and Export-Import Bank of Malaysia Bhd.

Based on Financial Year (FY) 2016 full year results, Destini achieved RM 354 million turnover, which is categorised as a mid-size corporation based on turnover value. Other aspects of the company’s FY2016 financial results are illustrated in the table below.

Destini’s revenue has been on a remarkable upward trend since 2012, from RM 56.83 million in FY2012 to RM 354.76 million in FY2016, which translates to a 6 times jump in just 4 years. In terms of net earnings, Destini experienced a similar trend, from RM 7 million in FY2012 to RM 31 million in FY2016 which equals to some 4.4 times increase in just 4 years.

Net profit margin wise, Destini scores a reasonable 8.76% as well as an average Return of equity (ROE) value at 6.86%.

On company’s debt, Destini has a low debt to equity ratio at 0.18 and both current ratio and cash ratio are of good values at 2.90 and 0.36 respectively.

Destini had never paid dividend yet since listing.

Moving forward, despite the challenging economic environment, the diversity range of business of Destini enables the group to mitigate cyclical industry risk and sustain its growth momentum over the upcoming years. Destini plans to focus more on sectors that has growth potentials such as marine time, aircraft servicing and transport business. While exploration and production in oil and gas remains modest, Destini plans to concentrate on areas that are still lucrative such as oil field decommissioning.

In conclusion, although Destini does not pay dividend, it is a good growth company based on their strong revenue and net profit growth over the years. Moreover, it has sound financial figures such as low debt to equity ratio and good current and cash ratios.

Next quarterly results announcement is expected to be in the month of Feb 2018.

News on Destini Bhd

Destini has been chosen as a politically linked counter simply because its group managing director, Datuk Rozabil Abdul Rahman is reportedly the Umno Perlis treasurer that owns a 25.4% stake in the company. 

Comparing the past years, the company has been doing well financially. The stock is perceived to have an uptrend due to positive restructuring and also achieving major potential contracts ahead of the coming general election.

Destini secured a contract with Lembaga Tabung Haji-controlled TH Heavy Engineering Bhd worth RM739 million to supply three offshore patrol vessels to the Malaysian Maritime Enforcement Agency early last year. Achieving the contract has supported Destini to rise as a big competition for large defence contracts.

In addition, an ongoing KTM job by Destini to supply 35 motor trolleys and to rail road vehicles is projected to complete by 2019. With negotiations occurring for over a year, Destini could potentially secure new survival and safety maintenance, repair and overhaul (MRO) jobs from KTM in 2018.

In terms of expansion, the company is also looking into mergers and acquisitions (M&A) to expand its commercial aircraft MRO business.

iVolume Spread Analysis Weekly Chart & Comment – Destini

Based on the 1-year weekly iVSAChart above, we noticed some changes in the trend after 9 months of distribution and is currently moving sideways on Stage 1 - accumulation. Bullish volume (green dot circle) started occurring since early November 2017. This is followed by 2 Sign of Strengths and a Green Diamond Buy signal with increasing volume.

We are expecting more Sign of Strengths to be formed in the upcoming weeks to as confirmation that the Smart Money is interested to continue supporting Destini.

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