Thursday, October 7, 2010

AmResearch maintains Hold on Dialog, FV RM1.32

KUALA LUMPUR: AmResearch said DIALOG GROUP BHD [] currently trades at a fair CY11F PE of 15x, at a premium to the oil & gas sector's 10x, and offers decent dividend yields at 3%.

'We maintain our HOLD call on Dialog with an unchanged SOP-derived fair value of RM1.32/share,' it said on Thursday, Oct 7.

On Wednesday, Dialog subsidiary, Dialog E&C Sdn Bhd secured a RM60.66 million contract from Petronas Carigali Sdn Bhd to build and commission a new condensate tank and associated facilities at Bintulu crude oil terminal.

The project will commence immediately and with completion within 20 months.

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