Dialog Group Bhd

18 May 2019

Source: Focus Malaysia



DIALOG Group Bhd reported a 21 % yoy rise in 3QFY19 profit to RM143. 7 mil. Revenue for the quarter fell by 27% yoy as EPGC works for Pengerang Deep Water Development (PDT) Phase 2 nears completion. Core net margin continued to improve due to cost savings realised on completed projects and increased earnings coming from joint ventures and associates. We believe that the maintenance jobs are expected to provide some form of commendable recurring earnings in the future. Dialog announced an interim dividend of 1.5 sen per share.

Maintain Hold with a target price of RM3.30. We believe that positives for Dialog have been priced in. Dialog is currently trading at 35.3 times FY19 forecasted earnings per share. We believe that Dialog needs to secure new projects to warrant a higher share price.