KUALA LUMPUR: Shares in Dialog Group Bhd shot up after the opening bell on Wednesday, climbing 9% after reporting a 21% jump in earnings.
The integrated technical service provider rose 10.42%, or 32 sen to RM3.39.
Dialog Group Bhd saw its net profit jumped 20.9% to RM143.71mil in the third financial quarter ended March 31, 2019 (3QFY19) from RM118.84mil a year ago.
The higher earnings was mainly due to cost savings realised on completed projects and increased share of profit in joint ventures and associates.
However, its revenue fell 26.6% to RM636.61mil from RM867.37mil in 3QFY18, on lower contribution from its Malaysian and international operations during the current quarter.
It declared an interim dividend of 1.5 sen a share.
For the nine months, its earnings were flat at RM395.13mil compared with RM395.52mil in the previous corresponding period. Its revenue fell by 22.6% to RM1.93bil from RM2.50bil.
CGS-CIMB Research said Dialog’s 9MFY6/19 core net profit of RM401.5mil made up 81%/86% of the house/consensus forecasts respectively, above expectations due to cost savings on completed projects.
“We maintain Add as Dialog yesterday announced the first of many off-takers for its Pengerang Phase 3 development, which could re-rate the share price,” it said.
It added that its SOP-based target price had been raised very slightly to RM4.04.