CIMB Equities Research expects Dialog Group Bhd to deliver strong earnings growth from next year onwards.
KUALA LUMPUR: Shares of Dialog Group Bhd
rose to a high of RM3.49 on Thursday, the best performance since October 2018, aided by firmer crude oil prices and recurring income business.
At midday, shares of the oil and gas services company was up eight sen to RM3.46.
At the last traded price of 3.46, it is trading at a forward price-to-earnings of 39.32 times.
The world's largest asset manager BlackRock Inc had bought 422,999 shares on July 9. This raised its shareholding to 1.89% or 106.51 million shares.
As of March 31, 2019, BlackRock managed approximately US$6.52 trillion in assets on behalf of investors worldwide.
Maybank IB Research. Hong Leong Investment Research and AmInvestment Research have Buy calls and target prices of RM3.60, RM3.87 and RM3.85 respectively.
CIMB Equities Research has an Add call and TP of RM4.59.
AmInvest Research had in a report on the oil and gas sector issued on July 5 said its top picks are still companies with stable and recurring earnings such as Serba Dinamik and Dialog Group.
“We like the recurring income business model of Dialog and Serba Dinamik, which are involved in operation and maintenance services while Dialog’s earnings visibility is further secured by the Pengerang Deepwater Terminal project with its enlarged buffer zone,” it said.
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