Kenanga Research says margin recovery is finally happening for Dialog Group
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NewsTranscript
00:00 We're looking at Dialog Group this morning.
00:04 Kenanga Research keeping its outperform rating on the counter with an unchanged target price
00:08 of RM3.10.
00:10 The stock settled yesterday at RM2.16.
00:13 In its note, Kenanga said Dialog's FY23 Connect Profit of RM501m missed its forecast by 6%
00:21 but met consensus estimates.
00:23 Year-to-date earnings declined slightly due to margin compression at the downstream segment.
00:28 On an encouraging note though, fourth quarter FY23 EBITDA margin finally reversed its sequential
00:34 downtrend since the second quarter of FY21.
00:38 Kenanga expects Dialog's midstream business to continue to do well on the back of robust
00:42 rates and utilisation.
00:44 Downstream margins should gradually improve while the ambitious expansion plans at Pengerang
00:49 and Tanjong Langsat remain on track.
00:51 The research house keeping its FY24 earnings forecast unchanged at RM559.5m while introducing
01:00 new FY25 numbers at RM581.6m.
01:05 Quick look at consensus.
01:06 According to Bursa Marketplace data, there are 11 buys, 3 holds and 1 sell.
01:11 Target prices averaging out to RM2.91 which is almost 35% higher than the stock's last
01:17 close of RM2.16.
01:19 Thanks for watching.