MIDF upgrades Dialog to `buy’


16 May 2019

Source: New Straits Times

 

KUALA LUMPUR: MIDF Research has upgraded Dialog Group Bhd to a “buy ” with a higher target price of RM3.50, from RM3.24 previously, on better earnings prospect.

It has revised Dialog’s earnings forecast by 8.6 per cent and 8.3 per cent for the financial year 2019 and 2020 (FY2019 and FY2020), respectively, looking at the group’s better-than-expected earnings performance in the third quarter.

Dialog net profit grew 20.7 per cent to RM143.7 million in the third quarter ended March 31 while earnings expanded 18.7 per cent to RM145.2 million year-on-year.

This brings its cumulative nine-month FY2019 earnings to RM395.1 million, making up 89 per cent and 83.7 per cent of MIDF and consensus’ full-year earnings forecasts, respectively.

However, revenue fell to RM636.6 million from RM867.37 million previously.

“Dialog will be one of the key beneficiaries of the soon-to-be completed Pengerang integrated Complex , which is scheduled to commence operations next year,” it said. Bernama