KUALA LUMPUR (Nov 13): Dialog Bhd shares fell 2.11% in active trade this morning, after its net profit for its first quarter ended Sept 30, 2018 (1QFY19) fell 29% to RM114.64 million from RM160.93 million a year ago, on the absence of fair value gain and lower revenue from its Malaysian operations.

At 11.55am, Dialog fell 7 sen to RM3.52, with 7.05 million shares done.

Earnings per share was down to 2.03 sen for 1QFY19, from 2.86 sen for 1QFY18. Quarterly revenue shrank 11.3% to RM690.89 million, from RM778.66 million a year ago, due to lower downstream activities, particularly in engineering, construction and fabrication works.

Meanwhile, CIMB IB Research maintained its “Add” rating on Dialog at RM3.32, with a lower target price of RM3.98 (from RM4.06) and said Dialog’s 1QFY19 core net profit was in line at 25% of house full-year forecast.

In a note Nov 12, the research house said it maintained Add on Dialog, as it should see earnings growth this year from the commissioning of Pengerang SPV2, the SPV1 expansion, and Langsat 3.

“Our SOP-based target price has been lowered slightly to RM3.98, as we factor in a lower assumed equity stake in Pengerang Phase 3,” CIMB IB Research said.