Dialog Group Berhad (DIALOG) delivered a higher net profit of RM148.3m (+16.6% YoY).
Malacca Securities (MSSB) Technical Focus today (Mar 22) said, they are expecting an improvement in its upstream business as outlook of the oil market remains positive.
The group will continue to invest in phased capacity expansions for its midstream business.
Technically, DIALOG last closed at RM2.25. Monitor for a breakout above RM2.27, targeting RM2.40-2.45, with a LT target at RM2.55. Support is located around RM2.14-2.16, while cut loss is at RM2.12.
Trading Catalyst
DIALOG delivered a higher net profit YoY. In 2Q24, DIALOG has achieved a net profit of RM148.3m from RM127.2m (+16.6% YoY), as revenue improved to RM859.2m from RM797.0m (+7.8% YoY), mainly attributable to higher production from the upstream activities.
MSSB said, oil market should continue to see improvement in the upstream business following the disruption to demand caused by the global events.
Meanwhile, DIALOG plans to grow its existing upstream business through the rejuvenation, development, and operatorship of producing and mature oilfields.
Phased capacity expansion in the midstream business. DIALOG plans to improve its midstream business by investing in phased capacity expansions for long-term customers across the group’s terminals business portfolio. This planned expansion will generate higher long term recurring income.
Technical Outlook
Share price has been consolidating around RM2.20 and last closed at RM2.25. As the technical readings are positive, MSSB expects follow-through buying interest to be seen in the near term above RM2.27, targeting RM2.40-2.45, with a LT target at RM2.55.
Support is set around RM2.14-2.16, with a cut loss set around RM2.12.
