KUALA LUMPUR: DIALOG GROUP BHD [] dipped in late morning trade on Friday, Aug 20, in line with the weaker broader market after the weak close on Wall Street while analysts were mixed on its outlook.
At 10.51am, Dialog was down one sen to RM1.09 with about one million shares done.
AmResearch reaffirmed its BUY rating on Dialog Group with an unchanged fair value of RM1.40/share based on its sum-of-parts valuation.
"We continue to like Dialog for its solid financials where tank business to underpin strong recurring income," it said.
AmResearch said Dialog's 4QFY10 net profit came in at RM29 million, thus taking its full year earnings to RM116 million.
"This is largely in-line with street's estimates and ours. Dialog announced a final dividend of 1.8 sen/share taking this year's DPS to 3.1sen/share - at current price, a decent yield of 3%," it said.
AmResearch said it expected earnings to grow by 11% to 24% for FY11F to FY12F - to be driven full contribution of Tanjung Langsat's terminals.
"We introduce FY12F earnings at RM179 million, assuming 20%-25% growth in turnover for plant maintenance, catalyst handling, specialised products," it said.
However, CIMB Research was downbeat on Dialog which maintained its Underperform on the company and a target price of 95 sen.
"While we continue to like Dialog's defensive earnings and prudent management, it remains the priciest stock in our oil & gas universe," it said.
CIMB Research said it continued to rate it an Underperform, with the potential downside triggers being a slowdown in engineering, procurement, CONSTRUCTION [] and commissioning (EPCC) order book replenishment, and delay in the Pengerang project.
"Investors should take profit and switch to our top oil & gas pick SapuraCrest Petroleum," it said.
At 10.51am, Dialog was down one sen to RM1.09 with about one million shares done.
AmResearch reaffirmed its BUY rating on Dialog Group with an unchanged fair value of RM1.40/share based on its sum-of-parts valuation.
"We continue to like Dialog for its solid financials where tank business to underpin strong recurring income," it said.
AmResearch said Dialog's 4QFY10 net profit came in at RM29 million, thus taking its full year earnings to RM116 million.
"This is largely in-line with street's estimates and ours. Dialog announced a final dividend of 1.8 sen/share taking this year's DPS to 3.1sen/share - at current price, a decent yield of 3%," it said.
AmResearch said it expected earnings to grow by 11% to 24% for FY11F to FY12F - to be driven full contribution of Tanjung Langsat's terminals.
"We introduce FY12F earnings at RM179 million, assuming 20%-25% growth in turnover for plant maintenance, catalyst handling, specialised products," it said.
However, CIMB Research was downbeat on Dialog which maintained its Underperform on the company and a target price of 95 sen.
"While we continue to like Dialog's defensive earnings and prudent management, it remains the priciest stock in our oil & gas universe," it said.
CIMB Research said it continued to rate it an Underperform, with the potential downside triggers being a slowdown in engineering, procurement, CONSTRUCTION [] and commissioning (EPCC) order book replenishment, and delay in the Pengerang project.
"Investors should take profit and switch to our top oil & gas pick SapuraCrest Petroleum," it said.
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