Dialog Group Bhd has retained BUY calls from MBSB Research, HLIB and CIMB Securities following a stronger-than-expected FY26 performance, with target prices of RM2.57, RM2.52 and RM2.45 respectively. MBSB Research raised its target from RM2.55 while HLIB and CIMB kept theirs unchanged.
MBSB Research said FY26 core profit rose 39% year-on-year to RM587 million on revenue growth of 15% to RM2.9 billion, supported by stronger downstream engineering, procurement, construction and commissioning contributions, stable tank storage occupancy and higher specialist product sales.
HLIB said Dialog delivered a record quarterly core profit of RM196.2 million, bringing FY26 core net profit to RM617.6 million, up 46%. It attributed the stronger performance to higher realised oil prices, resilient midstream operations with tank utilisation above 90% and stronger downstream EPCC activities.
CIMB Securities also said FY26 core earnings exceeded its and consensus forecasts by 9.5% and 7.9% respectively, with the midstream business remaining stable while upstream and downstream operations provided the earnings lift.
Looking ahead, the analysts expect FY27 growth to be supported by maiden contributions from the Cendramas production-sharing contract, first gas from the Baram Junior Cluster and an additional 150,000 cubic metres of storage capacity at Langsat 3.
MBSB Research also highlighted Dialog’s longer-term growth potential from Pengerang expansion, low-carbon infrastructure and upstream development, describing the group as a defensive long-term growth play.
The stock price rose 3.06% to RM2.02, as of 10.19 am.
