KUALA LUMPUR (Aug 16): CGS-CIMB Research has maintained its “Add” rating on Dialog Group Bhd at RM3.52 with a lower target price of RM4.48 (from RM4.59) and said Dialog’s FY6/19 core net profit of RM538 million was 2% below expectations (7% below consensus), due to slower-than-expected ramp-up in SPV2 contribtions.

In a note Aug 15, the research house said Dialog is making good progress on the commissioning of SPV2, SPV1 Phase 1E and the Pengerang Phase 3 projects.

“Our SOP-based target price has been reduced slightly to RM4.48 on slower capacity expansion assumptions, among other reasons,” it said.