Destini to distribute Survitec products in Malaysia

KUALA LUMPUR (Feb 24): Destini Bhd ( Financial Dashboard), which provides integrated engineering solutions, announced that its subsidiaries >Destini Prima Sdn Bhd and Vanguard Composite Engineering Pte Ltd have signed an agreement with UK-based Survitec Group International Ltd to distribute the latter’s commercial life rafts, as well as provide servicing and maintenance.

Survitec currently manufactures personal survival equipment in the marine, defense and aerospace industries.

Under the deal, Destini Prima will distribute and provide maintenance services for Survitec’s commercial life rafts, as well as market the MAS-67 Fully Enclosed Offshore Mass Evacuation System in the country.

Destini (fundamental: 1.4; valuation: 1.8) said its accessibility to the oil and gas market will enable the group to tap into the commercial sector, as well as potential contracts with local government agencies such as the Malaysian Maritime Enforcement Agency and the National Security Agency.

Survitec has also appointed Vanguard as the exclusive distributor as well as servicing partner of its boats within the Americas, Europe and Africa.

Destini said the partnership will expand Vanguard’s global reach, allowing its customers to access the 500 Survitec repair stations globally.

Destini also expects Vanguard – whose current revenue is around RM40 million – to book a 30% increase in its business.

“This mutually beneficial association, will not only bring more lucrative business opportunities, but also allow Destini to expand our reach and offer our products to a variety of customers in different regions around the globe. Vanguard’s expertise in lifeboats for example will complement Survitec’s business which does not have lifeboat capabilities,” Destini group managing director Datuk Rozabil Abdul Rahman said in a statement this evening.

The agreement, added Destini, is expected grow its business overseas, as well as bring potentially lucrative contracts with international clientele from Survitec’s extensive network worldwide.

The agreement – effective from Feb 1 – has an initial term of 12 months, with a renewal option upon successful completion.

Destini stock closed 0.88% higher to 57 sen today, with 137,700 shares traded, giving it a market capitalisation of RM455.68 million.

(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)

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