Maintain Buy. We have raised FY12-14F earnings estimates by 8-20% on higher EPCC revenue (+RM400-RM900m p.a.). Our 3-year net profit CAGR of 21% now reflects Dialog's 20-30% growth guidance. Our sum-of-parts based target price has however been lowered to RM3.05 (from RM3.35) after adjusting for the 2-for-10 rights issue (excluding warrants). Despite trading at 25x 2013 earnings (which incorporated just partial earnings potential), we continue to rate Dialog a Buy on expectations of continuous major project wins in 2012.


Maybank research (16 January 2012)

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