Dialog's target price cut to RM2.79 (7277)

Kenanga Research cut its target price on oil and gas services provider
Dialog Group Bhd after its 55 percent-owned Centralised Terminals
scrapped plans with Asia's top jet fuel buyer China Aviation Oil to
build a RM371 million greenfield oil storage terminal.

CAO
formed a joint venture in October last year with Centralised Terminals,
owned by Dialog and shipping firm MISC Bhd to build a 380,000 cubic
metre (2.39 million barrels) storage tank terminal in southern Johor
state's Tanjung Langsat Port.

In a note on Wednesday, Kenanga
cut its target price to RM2.79 per share from RM3.09 after removing
expected contributions from the storage terminal.

The
research house cut its net profit forecast for the company for
financial year 2013 by 7 percent and 2014 by 9 percent.

As of
10.32am, Dialog's shares dropped 0.41 percent against the Malaysian
benchmark stock index's 0.29 percent rise. -- Reuters