Too early to tell, too much BNNO inside, will have to wait and see if they can secure new government deal. The rebound will be shortlived. He tried to use star to control the damage.
during the agm last week, company approved share buy back.they never had it before. plus, destini is now adopting a dividend policy. cheap stock, steady business, present contracts can last 2 1/2 years with growth from commercial, and international esp oil & gad, and now dividend coming into play.
THAT a lack of corporate governance can lead to financial irregularities, and threaten the survival of a company, is something that Destini Bhd
Having come a long way from a decade ago, when the integrated engineering solutions provider – then known as Satang Holdings Bhd – was embroiled in financial irregularities that almost brought the company down, Destini is now more determined than ever to have its business run in a transparent and accountable manner.
That’s what Datuk Rozabil Abdul Rahman (pic), president and group chief executive officer of Destini, told reporters recently after the company’s AGM over the week.
“I will make sure that the company will continue to be run professionally, as an entrepreneur, with adherence to corporate governance,” he asserts.
He has a 4.16% direct stake, and an indirect interest of 21.05% in the company that is also in the oil and gas (O&G) business where it undertakes decommissioning of oil wells.
The second-largest shareholder in Destini is Aroma Teraju Sdn Bhd, a Finance Ministry-controlled entity, with a 17.3% stake.
Despite perception that Destini’s fortunes are tightly connected to the previous government under Barisan Nasional – by virtue of its heavy dependence on government contracts – Rozabil calls on investors to judge on its performance since he took over the company and the future plans that he has in store for it.
He further stresses that his political alignment is not a factor in determining the company’s fortunes.
“History shows that when I took over Destini and managed to turn around the company within a year, I had run it as a businessman and not as a politician,” Rozabil says.
“The result speaks for itself ... I cannot control people’s perception,” he adds.
Business turnaround
When Rozabil emerged in Destini in early 2011, his main purpose was to turn around the company, which was then still known as Satang.
Since taking over the helm, Rozabil has managed to grow the company’s business outside the Malaysian shores and the company has turned consistently profitable since 2012.
Among the restructuring initiatives undertaken is the strategic acquisitions of various companies to diversify Destini’s income stream.
These include Vanguard Composite Engineering Pte Ltd, a Singapore-based company involved in the manufacturing, servicing and maintenance of lifeboats, life rafts and davit systems; and Samudra Oil Services Sdn Bhd, which is involved in the provision of tubular handling services in the O&G sector and is a Petroliam Nasional Bhd licence holder.
Satang ran into trouble in 2008 after facing auditing issues, which revealed that its unaudited net profit for the financial year ended Sept 30, 2007 had been overstated by a staggering 631%. The company actually posted a net loss of RM26.71mil instead of a net profit of RM5.02mil as was previously stated in its unaudited financial results.
Satang slipped into the Practice Note 17 (PN17) status in May 2008 and had its stock suspended from trading for nearly three years from July 2009.
In 2011, the regulators publicly reprimanded Satang and fined the board of directors a total of RM180,000 for breaching Main Market listing requirements by failing to maintain an audit committee since Nov 1, 2010.
The company changed its name to Destini in September 2011. And following a regularisation plan, Destini was lifted out of PN17 category in April 2013.
Open tender
Destini’s shares have succumbed to heavy selling in recent weeks after the 14th General Election (GE14) that saw a change in government to Pakatan Harapan. This is because of the view that it is one of the politically-linked stocks with huge reliance on government contracts.
On that note, Rozabil says his focus remains on building up the business of Destini. He will not be distracted by the company’s recent share price performance.
“My focus is to build up the business, and let the company’s performance speak for itself,” he says.
“I’m here to manage the business to ensure that it consistently generates good profits and dividends to shareholders,” he adds, pointing to the company’s recently approved dividend policy of between 30% and 40% of net profit as a sign of its commitment to shareholders.
To reduce Destini’s reliance on government jobs, which contributed close to 80% of its revenue in 2012, Rozabil says the group will continue to seek more private commercial jobs and expand its reach geographically to fuel growth.
“Right now, our dependence on government contracts is still high but since last year, we have been quite active in seeking more commercial jobs,” Rozabil says.
He aims to change Destini’s revenue composition to 60% commercia
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
giraffe
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Posted by giraffe > 2018-06-01 16:09 | Report Abuse
Wow...up 10%