RHB Research has maintained a “Buy” recommendation for Dialog Group Bhd with an estimated TP of RM3.40.
It expects earnings growth to resume in FY22-23 on the back of revenue recovery and better tank terminal earnings contributions.
The stockbroking house said that the valuation remains undemanding as the stock currently trades at 27x FY23F P/E, which is at -1SD from its 5-year mean.
RHB said that there is no ESG premium or discount applied – Dialog’s ESG score of 3.0 is on par with our country median.
RHB said that the recent pledge to achieve net-zero carbon emissions by 2050 is a positive but we await a clearer roadmap to be declared soon.
The stockbroking house said that Its venture into recycling plastic waste to produce packaging materials for the F&B industry can be regarded as progress in its journey towards sustainability. “Dialog has started the procurement, and the plant is expected to be operational by FY23,” it said.
