Wednesday, November 18, 2009


The company’s 1QFY10 results were within expectations, mainly attributed to the consistent performance across all its divisions except the specialist products and services division, which experienced a q-o-q drop in performance. Going forward, we believe Dialog would be kept busy with the feasibility study for the Pengerang independent deepwater CTF conducted jointly with Vopak. It has also proposed a 2- for-5 bonus issue. We like Dialog as a defensive O&G stock that pays an attractive dividend yield of about 4%. Maintain Buy.

Maintain Buy on Dialog. Our target price of RM1.52 is based on a FY10 sum-of-parts valuation. Dialog is a steady defensive O&G stock that provides investors an attractive dividend yield of about 4%. It held net cash of RM143m as at 30 Sept, 2009.

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