DIALOG – Fundamental Analysis (14 May 2015)

DIALOG Analysis:-

Excel – http://1drv.ms/1A2TD46

Notes – http://tinyurl.com/nsvtjyj

My View:-

  • Valuation:
    • Absolute EY%:
      • Trailing:
        • FY14 (EPS: 0.044) – Fair value 1.46 (Fair Value Uncertainty: VERY HIGH)
        • R4Q (EPS: 0.052) – Fair value 1.72 (Fair Value Uncertainty: HIGH)
      • Forward:
        • FY15 (EPS: 0.049) – Fair value 1.62 (Fair Value Uncertainty: HIGH)
        • FY16 (EPS: 0.058) – Fair value 1.93 (Fair Value Uncertainty: MEDIUM)
      • EPS applied to reach the current stock price (1.65): 0.048
  • Based on the current price, DIALOG is fully valued.
  • In FY15 Q3, there is a one-time gain on disposal of RM23.4m.
  • The favourable performance is largely due to the Production Sharing Contract operations for the D35, D21 and J4 fields offshore Sarawak.
  • With Phase 1, 2 and 3 projects in motion, the upcoming Pengerang tank terminal facilities (i.e. Phase 4, 5 etc) will kick into higher gear. Based on the combined storage design of Phase 1 & 3 (3.4m m3 capacity), expansion in capacity is accelerated. The Pengerang terminal can accommodate up to 8m m3 in storage capacity, based on its built design.
  • In FY15Q3, rvenue from the international segment declined by -21%yoy due to lower activity levels. Low activity levels were recorded for the engineering, construction and plant maintenance in Singapore, fabrication in Australia and New Zealand and sales of specialist products and services in India and Brunei. Subsequently, international operation’s net profit for the current quarter declined by -14%yoy.
  • I am still bullish on the prospects of Pengerang as it expects the demand for storage facilities to increase.

Latest Financial – Q3 2015 Financial Report (12 May 2015) http://www.bursamalaysia.com/market/listed-companies/company-announcements/4735209

At the time of writing, I owned shares of DIALOG.

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