Dialog / Dr Ngau Boon Keat

[winston]

not vested

Dialog will likely be rid of its loss-making engineering, procurement, construction and commissioning projects over the next 12 months.

We also believe Dialog will eventually secure higher manpower rates for its plant maintenance contracts.

Source: CIMB

[winston]

not vested

Dialog remains focused on key long-term strategies

In the third quarter ended March 31, 2023, the technical service provider recorded a net profit of RM130.81mil, representing an earnings per share of 2.32 sen, down from a net profit of RM133.07mil in the same quarter last year.

The group reported revenue of RM802.79mil, up from RM593.43mil in 3QFY22.

For the three quarters to March 31, 2023, the group posted a net profit of RM383.74mil, down from RM389.76mil while revenue rose to RM2.31bil from RM1.64bil in the previous corresponding period.

Source: The Star

https://www.thestar.com.my/business/bus ... strategies

[winston]

not vested

Recovering post-pandemic
Maintain BUY and MYR4.90 TP

9MFY23 results came in below our expectation, which led to a 6%-12% cut in earnings.

We see this as a temporary setback as it recovers from the pandemic setback (supply chain & cost disruptions), remaining positive of its operational/financial strength & management acumen.

Developing Pengerang to its full potential remains its key agenda. Our TP is SOP-based.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/318988.pdf

[winston]

not vested

Dialog Group (DLG MK)
9MFY23: Results In Line Despite Costs Challenges

DLG’s 9MFY23 core profit is in line, as strong storage earnings continued to propel growth and offset higher cost base across all segments.

We retain forecasts which assume lacklustre near-term group earnings growth.

Key projects are expected to see near-term progress, including
a) Bayan’s first gas,
b) Dialog Diyou (Aug 23 first production), and
c) new storage offtaker for Pengerang Phase 3.

New growth catalysts are not factored into current share price.

Maintain BUY. Target price: RM3.00.

Source: UOBKH

https://research.uobkayhian.com/content ... 32ed688914

[winston]

not vested

Flattish quarter; longer-term catalysts in place

9MFY6/23 core net profit was in-line at 75% of our FY23F forecast, but below Bloomberg consensus’ at just 69%.

The 3QFY23 was another flattish quarter for Dialog, likely reflecting EPCC project losses and low margins on its existing plant maintenance contract.

Reiterate Add with a slightly lower SOP-based TP of RM2.73; rerating catalysts include potential positive newsflow on new tank terminal business.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 94063A66E2

[winston]

Dialog: BUY/ TP RM3.00

SOTP target implies FY24F PE of 30x, which does not reflect near-term earnings catalysts.

However, DLG stands out on its own theme as a beneficiary of the positive sentiment for storage, and Pengerang’s future developments.

We assumed an expansion catalyst of RM0.50/share for long-term storage terminals to materialise in Pengerang Phase 3, as a near-term event.

Source: UOBKH

[winston]

not vested

Dialog’s 4Q net profit rises 7%; proposes 2.4 sen final dividend

By Syafiqah Salim

Dialog Group Bhd’s net profit increased by 7.21% to RM126.78 million in the fourth quarter ended June 30, 2023 (4QFY2023) compared with RM118.25 million in the previous year corresponding quarter.

Revenue edged up 2.13% to RM690.04 million from RM675.65 million while earnings per share declined to 2.25 sen from 2.1 sen.

The oil and gas support services provider said its Malaysian operations recorded increased revenue from its upstream division due to the offshore project implementation at Bayan field in Sarawak, while midstream segment contributed to a stable revenue stream from the operation of Johor-based Dialog Terminals Langsat and Dialog Terminals Pengerang.

Source: theedgemalaysia.com

https://ceomorningbrief.theedgemalaysia ... m_content=

[winston]

Dialog Group (DLG MK)
FY23: Core Results Behind Expectations On Malaysia Project Hiccups

FY23 core profit was behind expectations on higher costs and project hiccups (ie Bayan first gas) that weighed down Malaysia income.

We cut our forecasts by 4-7% to assume a slower Malaysia income recovery, but the overseas income growth is positive progress.

We acknowledge that near-term catalysts (as Pengerang beneficiary and new storage offtaker) are murky, but we still see long-term growth for DLG (ie carbon capture).

Retain BUY with a lower target price of RM2.85.

Source: UOBKH

https://research.uobkayhian.com/content ... f5a4a8dec2

[winston]

not vested

Dialog's share price decline presents an opportunity for investors to accumulate, says HLIB

By Surin Murugiah

Dialog Group Bhd’s exclusion as an FBM KLCI constituent stock on Dec 18, 2023, and the MSCI index on Feb 29 triggered a significant sell-off from investors, leading to a 30.3% decline in Dialog's share price from its 52-week high of RM2.47 to a low of RM1.72.

Currently trading at undemanding financial year 2024 (FY2024) forecast price-earnings (P/E) of 20 times.

Source: theedgemalaysia.com

https://theedgemalaysia.com/node/703912

[winston]

not vested

Dialog Group (DLG MK)
Midstream Catalyst Is Still Ongoing

Although the storage terminals may continue to enjoy peakish utilisation and rates, the midstream segment offers another earnings catalyst via the Jubail Supply Base, that is benefitting from a sustainable elevated demand for O&G activities in Saudi Arabia and energy transition.

In terms of expansion/growth, Dialog remains as a Pengerang beneficiary, but may also see new growth from upstream (Baram Junior) and Jubail.

Retain BUY, with adjusted target price of RM3.10.

Source: UOBKH

https://research.uobkayhian.com/content ... a1aabd5f6a