KUALA LUMPUR: Shares in Dialog Group
rose 1.55% in early trade Thursday following its better-than-expected financial performance for the fourth quarter ended June 30.
The counter rose three sen, or 1.55% to RM1.96 with 5.39 million shares traded.
Dialog’s 4QFY17 net profit increased 33% to RM103.55mil year-on-year due to higher contributions from the group’s joint ventures.
Its revenue rose 35.1% from RM717.09mil to RM968.95mil.
Dialog has proposed to declare a final dividend of 1.45 sen per share for the quarter under review.
For FY17, Dialog’s net profit grew 26% to RM370.64mil, from RM294.93mil in the corresponding period.
RHB Research said Dialog’s Dialog’s FY17 core earnings came in at 105% of the house and 100% of consensus expectations.
“We continue to be positive on Dialog as we like its mix of current and future assets.
“Its current operational midstream assets are contributing recurring earnings to its bottomline while future assets – Pengerang LNG Regasification Terminal a nd Pengerang Dedicated Terminal – would contribute to earnings once commissioned at end-2017 and 2019 respectively,” RHB Research said.
It added that the stabilisation in crude oil price would enable its upstream assets to contribute more substantially to its earnings.
RHB Research has maintained its “buy” call on Dialog with a higher SOP-based target price of RM2.23.
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