Dialog / Dr Ngau Boon Keat

[winston]

not vested

Dialog group allocates RM700mil additional investment in Pengerang

Source: Bernama

https://www.thestar.com.my/business/bus ... -pengerang

[winston]

not vested

Dialog Group (DLG MK)
Expands upstream ops
Maintain BUY and MYR4.90 TP

Whilst this PSC is a low-risk deal and is unlikely to contribute in the near term, Dialog holding a majority stake and operatorship reflects its change in strategy (previously a minority holder in its earlier PSCs) as well as its intention to grow its upstream ops alongside its tank terminal ops, of
which the latter will remain its key driver.

Developing Pengerang to its full potential remains its key agenda and its Phase 3 ops are expected to gain traction this FY. Our TP is SOP-based.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/298226.pdf

[winston]

not vested

Dialog Group (DLG MK)

Storage In A Sweet Spot For 2023; Expansion Catalyst May Be Near-term Event

We see a more persistent storage upside in 2023, as new sanctions and various price
caps on Russian products are stimulating blending, realignments and re-exports of
fuels.

These amplify the need for fuel security and storage tanks demand.

However, our forecast is unchanged, as we account for existing projects’ earnings risk.

Still, we believe storage sentiment is a strong reason for an expansion catalyst (Pengerang
Phase 3) to materialise.

Retain BUY with an adjusted target price of RM2.85.

Source: UOBKH

https://research.uobkayhian.com/content ... 2f78434e4d

[winston]

not vested

Dialog expanding into renewable fuel storage biz, posts highest quarterly revenue since 2018

by Adam Aziz

Setting up Terminal Langsat 3 at its terminal operations in Tanjung Langsat, Johor for storage of renewable fuel products with a capacity of 24,000 cubic metres.

Setting up Terminal Langsat 3 at its terminal operations in Tanjung Langsat, Johor for storage of renewable fuel products with a capacity of 24,000 cubic metres.

Posted a net profit of RM127.15 million or 2.25 sen per share in its second quarter ended Dec 31, 2022 (2QFY23), down 0.6% year-on-year from RM127.88 million or 2.27 sen per share.

Revenue rising 46.4% year-on-year to RM797.01 million from RM544.49 million in 2QFY22.

Dialog owns a controlling stake in Thailand onshore oilfield operator Pan Orient Energy (Siam) Ltd, and has a 70% participating interest in the Baram Junior Cluster in Sarawak.

Source: theedgemarkets.com

https://www.theedgemarkets.com/node/655562

[winston]

not vested

1HFY23 results on track
Maintain BUY and MYR4.90 TP

1HFY23 earnings made up 43% of our FY estimate and we expect its YoY strength in FY23 to continue be driven by its upstream ops in TH and lower opex.

Developing Pengerang to its full potential remains its key agenda.

Its Phase 3 ops is expected to gained traction post pandemic.

All in, we remain positive of its operational/financial strength & management acumen.

Our TP is SOP-based.

Source: Maybank

https://mkefactsettd.maybank-ke.com/PDFS/303080.pdf

[winston]

not vested

Dialog Group (DLG MK)
1HFY23: Results In Line, Storage Expansion Catalysts Slowly Materialising

1HFY23 core profit is in line.

Stronger PITSB storage metrics outweighed the sequentially weaker Thailand upstream income and other Malaysia projects (weaker EBITDA qoq).

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

However, with Vopak reiterating positive storage sentiment, and Dialog securing its first ESG venture into renewable fuel storage, we still see potential expansion catalysts.

Maintain BUY and target price of RM2.85.

Aource: UOBKH

https://research.uobkayhian.com/content ... 89719d81af

[winston]

not vested

Dialog Group (DLG MK)
Blossoming Prospects Include Jetty Throughput, Moritmasu JV And New Storage

We visited Dialog’s Pengerang Deepwater Terminals recently.

The takeaways reinforce our view of strong sustainable storage earnings and event catalysts.

We see three prospects blossoming for DLG in the near term. Aside from potential new
storage offtakers in Pengerang Phase 3, the other two prospects are strong vessel calls (maximising the utilisation of all three jetties) and the Moritmasu-Dialog JV (embarking on new development).

Maintain BUY and adjusted target price of RM3.00.

Source: UOBKH

https://research.uobkayhian.com/content ... 81268113c8

[winston]

not vested

Dialog may see better quarterly earnings ahead, says CGS-CIMB

by Surin Murugiah

Better quarterly earnings ahead from rising tank utilisation and storage rates, and if it secures higher rates for plant maintenance work.

“Faster-than-expected progress in securing new customers for its Pengerang Deepwater Terminal is another strong potential catalyst.

Source: theedgemarkets.com

https://www.theedgemarkets.com/node/658398

[winston]

not vested

A decent price to reenter the stock

Upgrade from Hold to Add on valuation grounds after the recent share price correction; SOP-based TP of RM2.74 remains unchanged.

Dialog may see better quarterly earnings ahead from rising tank utilisation and storage rates, and if it secures higher rates for plant maintenance work.

Faster-than-expected progress in securing new customers for its Pengerang Deepwater Terminal is another strong potential catalyst.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... E531D1B4DD

[winston]

not vested

Dialog Group Bhd
Positive exposure to Pengerang’s growth

China’s Rongsheng Petrochemicals may invest in new refinery and petrochemical facilities in Pengerang; we expect this to benefit Dialog’s terminal.

This is on top of ChemOne Group’s planned petrochemical complex in Pengerang; we think these positive newsflow should re-rate the share price.

Reiterate Add with an unchanged SOP-based TP of RM2.74, of which RM0.62 comprises our estimated value of future Pengerang developments.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... FF1FA15E37