Upgrade to Buy as valuation turns attractive

研报英文原文证据摘录

Upgrade to Buy as valuation turns attractive

the acceleration of our estimated

expansion of 1mn cbm (0.5mn cbm in FY33F and FY36F each) at Dialog Terminals (unlisted),

which was not necessarily meant for Chemone but could also be for other potential customers. Our

current capacity expansion assumptions for Dialog’s midstream businesses target an increment of Source: LSEG, Nomura

20% from current FY26F capacity of 5.1mn cbm to 6.1mn cbm by FY30, based on the

announcements by Dialog. Research Analysts

Upgrade to Buy, with a slightly higher TP of MYR2.35, implying 22% upside Malaysia Oil & Gas/Chemicals

We upgrade Dialog to Buy (from Neutral) as the share price has retraced back to what we consider Ahmad Maghfur Usman - NSM

to be attractive valuation levels despite the 4%/7% cut in our earnings for FY27F/FY28F on the back ahmad.maghfurusman@nomura.com

of lower oil prices, as we factor in some form of de-escalation effect into our Brent crude price +603 2027 6892

assumptions. We slightly raise our SOTP-derived TP to MYR2.35 (from MYR2.30; Fig.3) as we roll Research Associates

over our valuation horizon for its DCF-based cash flows from FY28F onwards (until the end of its

Malaysia Oil & Gas/Chemicalslong-term lease expiry). The stock currently trades at 15.6x FY27F P/E vs its historical average of

Shashwat Choudhary - NSFSPL20.5x, which we find attractive, supported by decent dividend yield of 4%. A key downside risk is oil

price decline and competition from other operators resulting in lower storage rates.

Year-end 30 Jun FY25 FY26F FY27F FY28F

Currency (MYR) Actual Old New Old New Old New

Revenue (mn) 2,502 2,965 2,950 3,305 3,257 3,285 3,218

Reported net profit (mn) 283 529 533 728 698 726 674

Normalised net profit (mn) 410 529 533 728 698 726 674