KUALA LUMPUR (May 15): Dialog Group Bhd shares rose as much as 35 sen or 11.4% to RM3.42 so far today after the oil and gas support services provider announced yesterday that its third quarter (3QFY19) net profit climbed to RM143.71 million from RM118.84 million a year earlier.

For the cumulative nine months ended March 31, 2019 (9MFY19), Dialog said net profit fell to RM395.13 million from RM395.53 million. For 3QFY19, the group also declared a dividend of 1.5 sen a share.

Today, Hong Leong Investment Bank Bhd and RHB Investment Bank Bhd said Dialog's 9MFY19 core net profit at about RM395 million was above expectations.

Hong Leong analyst Sean Lim Ooi Leong wrote in a note that Dialog's "9MFY19 core net profit of RM394.6 million (+22% year-on-year) came above expectations at 85%/84% of our/consensus full year estimates".

"Post earnings adjustments, we reiterate our BUY rating on the stock with higher target price (TP) of RM3.80 (from RM3.76), based on our sum-of-parts valuation," Ooi Leong said.

RHB analyst Lim Sin Kiat wrote in a note that Dialog's 9MFY19 core net profit was above RHB's and street estimates, at 89.4% and 84.4% respectively.

Sin Kiat said RHB raised its Dialog share TP to RM4.28 from RM4.13 previously, while maintaining its buy call for the stock.