Cessation of Coverage
We cease coverage on Destini and our recommendation on the stock should no longer be relied upon. Our last target price was RM0.65.
Stock information
DESTINI
DESTINI - MYX 7212
NOT RATED
Target price: RM0.65
Last price: RM0.38
Market cap: RM209m
Shares out: 549m
52-week range: RM0.28 / RM0.51
3M ADV: RM0.3m
T12M returns: 15%
Disclaimer: By using this information, you acknowledge that you are solely responsible for evaluating the merits and risks of any investment decision and agree not to hold NewParadigm Research liable for any damages arising from such decisions.
Key points
- Destini has filed its Annual Report and Audited accounts for FY25, avoiding suspension.
- FY25 audited PATAMI has a -7% variance vs unaudited, while there was a -19% adjustment in total equity.
- Adjustment to unaudited figures were extensive and a recurring issue from previous years. We cease coverage of Destini.
Share price performance
Investment fundamentals
| RMm | FY25A | FY26E | FY27E | FY28E |
|---|---|---|---|---|
| Revenue | 340.5 | 454.7 | 500.1 | 509.9 |
| Revenue Growth | 114% | 34% | 10% | 2% |
| EBITDA | 50.7 | 67.4 | 78 | 78.4 |
| EBITDA margin | 15% | 15% | 16% | 15% |
| PATAMI | 28.2 | 40.7 | 49.9 | 49.9 |
| PATAMI margin | 8% | 9% | 10% | 10% |
| ROA | 7% | 7% | 8% | 7% |
| ROE | 17% | 19% | 19% | 16% |
| PER | 6.7 | 5.1 | 4.2 | 4.2 |
| P/BV | 1.2 | 1.0 | 0.8 | 0.7 |
| Yield | 0% | 0% | 6% | 7% |
Source: Company data, NewParadigm Research, November 2025
Substantial adjustment to total equity
- The audited accounts presented widespread variations compared with the unaudited accounts, including income statements, balance sheet and cash flows.
- This is a recurring issue for Destini from previous years. Note that there was also a restatement of FY24 accounts with a +2% variance to PATAMI.
- In addition to the lower reported PATAMI, the most glaring adjustment is the -19% drop in total equity due to an RM35m swing in reserves.
Variance to selected financials
| RMm | FY25 unaudited | FY25 audited | Variance |
|---|---|---|---|
| Revenue | 340 | 342 | 0.4% |
| Gross profit | 111 | 131 | 18% |
| PBT | 39 | 38 | -4% |
| PATAMI | 28 | 26 | -7% |
| Non-current assets | 61 | 54 | -12% |
| Current assets | 332 | 319 | -4% |
| Total equity | 168 | 135 | -19% |
| Non-current liabilities | 74 | 74 | -0.4% |
| Current liabilities | 151 | 164 | 8% |
| Operating cash flow | -63 | -54 | -13% |
| Investing cash flow | 2 | -9 | -479% |
| Financing cash flow | 62 | 62 | -1% |
Source: Company data, NewParadigm Research, November 2025
Dropping coverage
- We initiated Destini with a BUY and a target price of RM0.65 on June 23, where it has since traded as high 51sen intraday on 15 July.
- We cease coverage on Destini and our recommendation on the stock should no longer be relied upon. Our last target price was RM0.65.
