Dialog Group: Attractive Dialogues…..

·         11 analysts are covering the stock and 10 are BUY calls and only 1 is SELL.

·         Average Target Price: RM2.48, representing 13% potential upside compared with the current price of RM2.20

·         Comparison between relative peers

Companies	Dialog	Sapcres	Kencana
Market Capitalization	4.32b	4.69b	4.8b
Price	2.17	3.68	2.62
Revenue y-o-y growth (%)	3.13	-5.64	-4.45
EPS y-o-y growth (%)	28.07	38.25	37.86
ROE (%)	25.24	19.09	24.76
Dividend Yield 12 m gross (%)	1.44	1.89	0.19
P/E	34.72	23.87	25.19

·         The most interesting point is the company currently has about 307m of retained earnings (RE) where its capital share only amounts to about 200m. There is potential that the company will distribute to shareholders. Last year, the company announced bonus issue of 2 bonus shares for existing 5 shares held on 13 January and subsequently its result released on 9 February with RE of about 315m and share capital of 141.

·         EPF acquired about 19.84 million of Dialog’s shares in January, increasing its stake to 13.83%. On the other hand, EPF disposed 5.44 million shares of its peer Kencana in January, decreasing its holdings to 6.24.

·         Dialog’s earning result will be out soon. Last year, its 2Q result released on 9^th February on Bursa Malaysia.

(Source: Bursa Malaysia)

Disclaimer: The company analysis that appear in this blog is merely facts gathered from different sources and the author's personal view. It is not a buy or sell recommendation. The author do not guarantee the accuracy of the facts being presented. Please consult your investment advisors before acting on any information provided by the analysis above.