KUALA LUMPUR (March 30): CGS-CIMB Research has downgraded Destini Bhd to Reduce at 25 sen and slashed its target price (TP) to 5 sen (from 28 sen) and said Destini’s FY20 core net loss of RM129 million was nearly 5 times the RM27.1 million the research house previously forecast, as the firm’s aviation revenue plunged amidst the pandemic.

In a note March 29, the research house said as the aviation industry is unlikely to return to normal operations in 2021, it now forecast Destini to be in a net loss in FY21F.

“FY22F EPS is cut by 51%.

“Destini’s new proposed 20% share placement is critical to replenish its working capital needs. Downgrade to Reduce with a lower TP of 5 sen,” it said