KUALA LUMPUR (May 11): CIMB Research has maintained its Outperform rating on DIALOG GROUP BHD [] at RM2.22 with a revised target price of RM2.93 (from RM2.95) and said delayed contribution from Phase 1 of the Pengerang terminal was behind Dialog’s results letdown, with 9M net profit coming in at only 60% of our full-year forecast and 63% of consensus estimate.
"But our optimism is intact as the earnings shortfall is purely a timing issue," it said in a note Friday.
"We reduce our FY12 EPS for the timing of Phase 1’s contribution.
"Our target price drops slightly as we update our SOP calculation. We continue to value the businesses at 18.2x P/E, a 40% premium over our CY13 target market P/E of 13x. Potential contracts for the Rapid project and marginal fields underpin our Outperform call," it said.
"But our optimism is intact as the earnings shortfall is purely a timing issue," it said in a note Friday.
"We reduce our FY12 EPS for the timing of Phase 1’s contribution.
"Our target price drops slightly as we update our SOP calculation. We continue to value the businesses at 18.2x P/E, a 40% premium over our CY13 target market P/E of 13x. Potential contracts for the Rapid project and marginal fields underpin our Outperform call," it said.
