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Research by HLIB
Buy – TP RM3.04

“Looking forward to a stronger FY25"

Dialog reported 4QFY24 core earnings of RM165.1m (+1.9% QoQ, +45.1% YoY), bringing FY24 core net profit to RM610.7m (+20.7%). The results were within ours and consensus estimates. Core earnings rose marginally QoQ (+1.9%) thanks to recovery in share of JV and associates due to absence of forex losses incurred in 3QFY24. We remain optimistic that Dialog is on track to turnaround its downstream businesses in FY25. As loss making EPCC contracts are mostly completed alongside renewed rates for its 5-year MSA with Petronas since mid-CY24, we expect Dialog to record stronger earnings in the coming quarters. Maintain our forecasts and BUY call on Dialog with unchanged SOP-derived TP of RM3.04.

Analyst:
Brian Chin
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$KLSE-DIALOG
Research by HLIB
Buy – TP RM3.04

“Looking forward to a stronger FY25"

Dialog reported 4QFY24 core earnings of RM165.1m (+1.9% QoQ, +45.1% YoY), bringing FY24 core net profit to RM610.7m (+20.7%). The results were within ours and consensus estimates. Core earnings rose marginally QoQ (+1.9%) thanks to recovery in share of JV and associates due to absence of forex losses incurred in 3QFY24. We remain optimistic that Dialog is on track to turnaround its downstream businesses in FY25. As loss making EPCC contracts are mostly completed alongside renewed rates for its 5-year MSA with Petronas since mid-CY24, we expect Dialog to record stronger earnings in the coming quarters. Maintain our forecasts and BUY call on Dialog with unchanged SOP-derived TP of RM3.04.

Analyst:
Brian Chin
brianchy@hlib.hongleong.com.my