On Tuesday, Destini Bhd (DESTINI:KLS)closed at 0.73, 28.07% above the 52 week low of 0.57 set on Jul 11, 2016.

On Friday, Destini Bhd (DESTINI:KLS) closed at 0.20, -29.82% below its 52-week high of 0.285, set on Jul 24, 2019.

Kajian Saham Picisan

On Friday, Destini Bhd (DESTINI:KLS) closed at 0.22, -22.81% below its 52-week high of 0.285, set on Jul 24, 2019.

Kajian Saham Picisan

From Boom to Bleed: Can Destini Berhad Pull Off a Comeback?

Over the past six years, Destini Berhad’s positioning has evolved from branding itself as a “diversified engineering group” in 2019 to a “globally engaged engineering solutions provider” by 2024. However, its financial performance over this period has been far from inspiring.

In 2024, Destini’s annual revenue stood at just one-third of its 2019 level. It recorded a profit in only one of the past six years. These persistent losses were driven by a combination of structural dependencies, external industry challenges, and internal inefficiencies.

A key issue has been Destini’s historical reliance on government contracts, particularly in the defence and marine sectors - areas where contract flows have diminished in recent years.

Aggressive expansion in the previous decade left the Group with a high fixed cost base. The situation was further exacerbated by impairments on receivables, goodwill from past acquisitions, and obsolete inventories.

The various issues faced by Destini is reflected in its “Quicksand” position on the Fundamental Mapper.

Recognizing these weaknesses, Destini has begun pivoting toward more commercially driven and sustainable sectors, including renewable energy and rail mobility.  While the turnaround is still a work in progress, the following will be key indicators of success:

• Consistent operating profits across core segments, without relying on asset revaluations or exceptional items.

• New contract wins in future-focused sectors like renewables and electric rail maintenance.

• Operational restructuring, including cost reductions, disposal of underperforming units, and a streamlined corporate structure.

• Improved financial discipline, evidenced by stronger operating cash flow, reduced debt levels, and less dependence on equity fundraising.