KUALA LUMPUR: CIMB Securities Sdn Bhd has reiterated its ‘buy’ recommendation for Dialog Group Bhd, maintaining a target price of RM3. The firm anticipates that Dialog’s financial performance for the fiscal year 2025 will remain stable, buoyed by consistent contributions from its upstream and midstream operations.

According to BERNAMA News Agency, Dialog’s core net profit for the first quarter of financial year 2025 (1Q2025) amounted to RM160 million, aligning with CIMB’s expectations and market consensus. These profits represent 25.4 per cent and 24.4 per cent of the full-year earnings projections for FY2025, respectively.

Additionally, the research firm highlighted that downstream earnings are expected to see further growth as the Langsat 3 storage facilities continue to be constructed. Hong Leong Investment Bank also made slight adjustments to Dialog’s financial forecasts for 2025 and 2026, by 0.2 per cent and 0.3 per cent respectively, after incorporating updates from the 2024 annual report. The bank ha
s introduced an earnings projection of RM691 million for financial year 2027.

Dialog’s 1Q2025 core earnings of RM160 million were consistent with both CIMB’s and consensus expectations, at 24 per cent. The bank expressed its interest in Dialog due to its recurring income business model and strategic position for future expansion through the development of tank terminals in Pengerang.

The investment bank is optimistic about Dialog securing long-term contracts for its Pengerang Deepwater Terminals (PDT) Phase 3, which offers approximately 202.3 hectares for future development. As a result, the bank has sustained its buy recommendation for Dialog, increasing the target price to RM3.12 from the previous RM3.04.

As of 9.30 am, Dialog’s share price rose by five sen to RM2.04, with a trading volume of 4.3 million shares.