Destini 4Q net profit surges 106.8%

KUALA LUMPUR (Feb 27): Destini Bhd’s net profit surged 106.8% to RM7.98 million or 1 sen per share for the fourth quarter ended Dec 31, 2014 (4QFY14) from RM3.86 million or 0.8 sen per share a year ago, mainly due to contribution from its new subsidiary Samudra Oil Sdn Bhd and improvement in profit from its maintenance, repair and overhaul (MRO) services.

Revenue jumped 73.4% to RM61.88 million from RM35.7 million in 4QFY13.

For the financial year ended Dec 31, 2014 (FY14), Destini (fundamental: 1.4; valuation: 1.8) saw its net profit double to RM16.57 million or  2.34 sen per share from RM8.22 million or 2.73 sen per share the previous year.

Revenue rose 78.9% to RM166.97 million from RM93.31 million in FY13.

Destini managing director Datuk Rozabil Abdul Rahman attributed the improved performance in FY14 to higher trading sales and revenue from Samudra Oil as well as higher profits was from its MRO services.

For FY15, Rozabil said Destini’s operating environment is expected to remain challenging and competitive.

“We believe, however, that the diversification of our revenue streams through the acquisition of Samudra Oil will soon begin to bear fruit and contribute positively to the earnings potential of the group,” he said in a statement today.

“Concurrently, we are seeking out new opportunities to expand and build upon the business operations we already have in place with our other subsidiaries,” said Rozabil, adding that the board of directors is cautiously optimistic with regards to Destini’s operational results for FY15.

Destini, through its subsidiaries Destini Prima Sdn Bhd and Vanguard Composite Engineering Pte Ltd, had recently formalised a lucrative partnership agreements with Survitec Group International Ltd.

“The partnership will expand Vanguard’s global reach, allowing its customers to access the 500 Survitec repair stations globally. Vanguard expects to see an estimated 30% increase in business from the partnership,” said Rozabil.

As at 2.51pm, Destini’s share price was unchanged at 57 sen, with 294,100 shares done. Its market capitalisation stood at RM451.93 million.

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