Dialog up after reporting 2Q profit rise

-A +A

KUALA LUMPUR (Feb 15): Dialog Group Bhd's share price increased as much as 19 sen or 6.35% to RM3.18 so far today after the oil and gas support services provider reported yesterday that net profit rose to RM136.78 million in the second quarter ended Dec 31, 2018 (2QFY19) from RM115.76 million a year earlier.

Dialog said 1HFY19 net profit, however, fell to RM251.42 million from RM276.69 million a year earlier. At 10am today, Dialog shares were traded at RM3.18 among Bursa Malaysia's top gainers with a volume of some six million units.

CIMB Research analyst Raymond Yap wrote in a note today: "Dialog's 1HFY19 core net profit made up 53% of our full-year forecast (56% of Bloomberg consensus), which we consider to be in-line."

"We raise our SOP (sum-of-parts)-based target price to RM4.03 (from RM3.98) on housekeeping matters," Yap said.

He said CIMB Research maintained its add call for Dialog shares.