KUALA LUMPUR (Feb 12): Dialog Group Bhd (KL:DIALOG) rose sharply again on Thursday as a strong earnings rebound in the recently-ended quarter buoyed optimism of investors and analysts.
The latest results, which met expectations, confirmed that the oil-and-gas services firm is no longer saddled by legacy construction contracts plagued by cost overruns. Current volatile oil prices, meanwhile, will boost demand for storage space in the short to medium term, said MBSB Research.
“This would therefore be a positive development for its midstream business,” the research house said in a note.
Dialog rose nine sen or 5% on Thursday to RM1.76 — its highest close since Jan 16, 2026 — and adding to the 5% gain on Wednesday ahead of the results announcement.
Public Investment Bank, RHB Research and Nomura upgraded the stock post-results. There are now 13 ‘buy’ ratings out of 14 research houses covering the stock with Citi having the sole ‘neutral’ call. The consensus target price is RM2.28, based on the average of the analysts tracked by Bloomberg.
For RHB Research, recent share price weakness has improved Dialog’s risk-reward profile at a time of steady earnings visibility with resilient midstream operations that contributes more than half of its annual profits.
Dialog’s mainstay tank terminal business is benefiting from tight supply in Asia with its assets nearly filled to the brim, supporting storage rates and cash flow.
In the upstream segment, the award of a production sharing contract for the Cendramas field off Peninsular Malaysia with its partners should contribute to Dialog immediately given that it is a producing asset, said CGS International.