Missed deadline resurfaces old concerns
Regulators will suspend Destini on 10 Nov for missing the 31 Oct deadline for issuing the FY25 audited accounts and annual report.
Stock information
DESTINI
DESTINI - MYX 7212
BUY
Target price: RM0.65
Last price: RM0.345
Market cap: RM189m
Shares out: 549m
52-week range: RM0.20 / RM0.51
3M ADV: RM0.5m
T12M returns: 6%
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
- Regulators will suspend Destini on 10 Nov for missing the 31 Oct deadline for issuing the FY25 audited accounts and annual report.
- Management aims to issue accounts by 7 Nov to avert suspension. Otherwise, suspension would be lifted following the issuance.
- We place Destini under review. At best, this is a glaring administrative lapse. At worst, a restatement of accounts would reignite old governance concerns.
Share price performance
Investment fundamentals
| RMm | FY25A | FY26E | FY27E | FY28E |
|---|---|---|---|---|
| Revenue | 340.5 | 454.7 | 500.1 | 508.9 |
| 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 | 8.0 | 6.1 | 5.0 | 4.9 |
| P/BV | 1.5 | 1.1 | 0.9 | 0.8 |
| Yield | 0% | 0% | 5% | 6% |
Source: Company data, NewParadigm Research, November 2025
There is time, but is the damage done?
- Destini has failed to issue its audited accounts and annual report (FY25) by the regulatory deadline of 31 Oct. In turn, it now faces a 5-day suspension deadline to make the filings or be suspended on 10th Oct (link).
- Management says it is confident that it can rectify the situation, by filing the documents by the 7th. If the deadline is missed, Destini will be suspended. However, the suspension will be lifted the following day, of and when the filings are completed. But if it takes more than 6 months, Destini will be subject to additional enforcement actions.
- The explanation: The reason for the delayed filings was blamed on the acquisition of Australian-based subsidiary, Trovon Group Pty Ltd, during the financial year (link). Under Australian regulations, Trovon was required to file annual audited accounts. The entity faced its first audit following Destini’s acquisition, and a component auditor based in Singapore took longer than expected to finalize. In turn, this held up the group’s consolidated accounts.
- At best, this appears to be an avoidable administrative lapse, albeit a glaring one. Destini should have applied for an extension of time from Bursa to prevent the risk of a suspension, especially since (based on management’s assertion) the deadline would have only been missed by one week.
- At worst, we worry the late accounts will also come with substantial restatements. This was a recurring issue that plagued Destini prior to the change in management. The most likely source of the restatement would be Trovon’s accounts, which then raises questions about the due diligence of the acquisition if there were not audited accounts. We fear this may induce a governance discount on Destini’s valuations going forward.
Event trade - Will accounts be filed on time?
- Destini has been sold down -16% on the news. We anticipate a rebound if the accounts are filed on time. However, if management misses the deadline it would result in a suspension of trading.
- We place Destini under review, pending the release of the accounts.
