In a research note today, the investment bank called for a 'buy' recommendation for Dialog, with a fair value of RM3.75 per share and an 'overweight' rating for the oil and gas sector.
Dialog's revenue for the first quarter ended Sept 20, 2021 (Q1 2022) jumped 52.4 per cent to RM505.45 million, compared with RM331.66 million in Q1 2021.
The company’s performance was attributed to its Malaysian and international operations which saw an increase in business activities following the reopening of economies.
However, its net profit narrowed 11.5 per cent year-on-year to RM128.81 million in Q1 2022 from RM146.62 million previously, mainly due to higher project costs.
Dialog’s tank terminal operations remain its core earnings contributor, and developing Pengerang to its full potential -- which will take about 10 years -- is key to its performance.
"Its green energy agenda is also starting to shape up, a positive for its sustainability roadmap,” said Maybank IB Research in a recent note.
At 10.44 am, Dialog’s shares rose two sen to RM2.56 with 1.2 million shares transacted. - Bernama: