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Thursday, 14 June, 2012

Company Update

Sailing Smooth
Stock Data Bloomberg Ticker Market Cap Issued shares 52-week range (H) 52-week range (L) 3-mth avg daily volume Free Float Shariah Compliant Financial Derivatives Share Performance (%) Absolute vs. KLCI Financial Highlights FYE 30 Jun 2009 Turnover 1,104.5 (RMm) EBIT 96.9 Pretax profit 123.5 Core Net Profit 91.9 EBIT margin Pretax margin Effective tax rate ROE ROA Net Gearing (x) Core EPS (sen) Core EPS growth PER (%) (x) DPS (sen) Div. Yield (%) NTA/share (RM) Growth ratios Turnover EBIT Pretax profit Core Net profit Share Price Chart

DLG MK 5,726.6 Equity 2,406.1 2.544 1.63 4.0 56.1% Y Y Altman Z-score YTD price chg YTD KLCI chg Beta Major Shareholders EPF Azam Utama SB Wide Synergy SB 7.0 -0.4% 3.0% 1.4 15.6% 11.1% 10.4%

Price: RM2.38 Target Price: RM2.78 Dialog announced that its RM94m Phase 1 Jubail Supply Price:
Base in Saudi Arabia has commenced its operation. Marking the operation commencement event is a 1.5 year maiden contract worth RM17m for provision of logistic services from Snamprogetti Saudi Arabia Co. Ltd. We made no changes to our numbers and continue to like the stock for its strong business execution track records, maintain our Buy call at an unchanged target price of RM2.78. The supply base. First announced in 2009, the development of the phase 1 integrated offshore supply base in Jubail Commercial Port commenced in Dec 2010. The development cover access/berthing channel deepening, construction of a 420m anchored sheet piled quay wall, diesel fuel and fresh water storage tanks, a workshop, warehouse and ancillary support facilities. Phase 1 was completed in Dec 12 with total investment of RM94m. The facility is strategically located in the Arabian Gulf region where major offshore oil and gas field are located as well as near to the integrated petrochemical complexes in Jubail Industrial City. Update on Balai marginal field. Progress of the project is within schedule and budget (pre-development cost is now estimated at USD230m) with the four Tarpon GuyedCaisson wellhead platforms which destined for the Balai, Bentara, Spaoh and West Acis field expected to be installed this month while drilling programme for well appraisals will commence in July. Concurrently, conversion woks for the Early Production Vessel are underway. This predevelopment exercise is expected to be concluded in 1Q13 and results from the exercise will be utilized to formulate the optimum development plan of the fields for Petronas sanction for full field development. No change in forecast. We made no change in our forecast as the impact to FY13 Dialogs earnings is relatively small. View & Valuation. We continue to favour the stock for its strong delivery track record and continue to see the company as one of the strong contenders for additional risk sharing contracts from Petronas which certainly would help to boost its existings strong recurring earnings profile. Maintain our Buy call at SOP target price of RM2.78.

1mth 6.3% 5.7%

3mth 3.1% 2.6%

12mth -5.0% -7.8%

2010 1,139.1 118.6 150.0 118.3

2011 1,208.4 165.0 200.5 152.3

2012E 1,409.6 156.8 207.6 176.5

2013E 1,729.7 194.4 250.6 213.0

8.8% 10.4% 13.7% 11.1% 11.2% 11.2% 13.2% 16.6% 14.7% 14.5% -17.8% -16.9% -20.1% -20.0% -20.0% 20.9% 24.8% 26.1% 15.2% 16.7% 13.4% 13.9% 14.8% 9.0% 8.4% Net cash Net cash Net cash Net cash Net cash 3.8 4.9 6.3 7.3 8.9 21.6% 28.7% 28.7% 15.9% 20.7% 62.3 48.4 37.6 32.4 26.9 1.6 2.3 2.8 3.3 4.0 0.7% 1.0% 1.2% 1.4% 1.7% 0.16 0.19 0.21 0.24 0.49

39.7% 44.1% 27.0% 21.6%

3.1% 22.3% 21.5% 28.7%

6.1% 39.2% 33.7% 28.7%

16.7% -5.0% 3.5% 15.9%

22.7% 24.0% 20.7% 20.7%




1.00 Jun-11





Chiong Tong Chai chiongtc@bimbsec.com.my 03-26918887 ext 175


14 June 2012

Company Update: Dialog

Balai Clusters Fields Location Balai, Bentara, Spaoh and West Acis

Source: Google

Conversion works on Early Production Vessel

Load-out of Wellhead Platforms

Balai-A Platform

Source: Roc Oil



14 June 2012
DEFINITION OF RATINGS BIMB Securities uses the following rating system:

Company Update: Dialog

STOCK RECOMMENDATION BUY Total return (price appreciation plus dividend yield) is expected to exceed 10% in the next 12 months. TRADING BUY Share price may exceed 15% over the next 3 months, however longer-term outlook remains uncertain. NEUTRAL Share price may fall within the range of +/- 10% over the next 12 months TAKE PROFIT Target price has been attained. Fundamentals remain intact. Look to accumulate at lower levels. TRADING SELL Share price may fall by more than 15% in the next 3 months. SELL Share price may fall by more than 10% over the next 12 months. NOT RATED Stock is not within regular research coverage. SECTOR RECOMMENDATION OVERWEIGHT The Industry as defined by the analysts coverage universe, is expected to outperform the relevant primary market index over the next 12 months NEUTRAL The Industry as defined by the analysts coverage universe, is expected to perform in line with the relevant primary market index over the next 12 months UNDERWEIGHT The Industry as defined by the analysts coverage universe, is expected to underperform the relevant primary market index over the next 12 months Applicability of ratings The respective analyst maintains a coverage universe of stocks, the list of which may be adjusted according to needs. Investment ratings are only applicable to the stocks which form part of the coverage universe. Reports on companies which are not part of the coverage do not carry investment ratings as we do not actively follow developments in these companies. Disclaimer The investments discussed or recommended in this report not be suitable for all investors. This report has been prepared for information purposes only and is not an offer to sell or a solicitation to buy any securities. The directors and employees of BIMB securities Sdn Bhd may from time to time have a position in or either the securities mentioned herein. Members of the BIMB Group and their affiliates may provide services to any company and affiliates of such companies whose securities are mentioned herein. The information herein was obtained or derived from sources that we believe are reliable, but while all reasonable care has been taken to ensure that stated facts are accurate and opinions fair and reasonable, we do not represent that it is accurate or complete and it should not be relied upon as such. No liability can be accepted for any loss that may arise from the use of this report. All opinions and estimates included in this report constitute our judgements as of this and are subject to change without notice. BIMB Securities Sdn Bhd accepts no liability for any direct, indirect or consequential loss arising from use of this report.

Published by

BIMB SECURITIES SDN BHD (290163-X) A Participating Organisation of Bursa Malaysia Securities Berhad Level 32, Menara Multi Purpose, Capital Square, No. 8 Jalan Munshi Abdullah, 50100 Kuala Lumpur Tel: 03-2691 8887, Fax: 03-2691 1262 http://www.bimbsec.com.my

Kenny Yee Head of Research