CIMB Research maintains Outperform on Dialog

KUALA LUMPUR: CIMB Equities Research maintains its Outperform recommendation on Dialog Group Bhd and its 40% target price-to-earnings premium over the market.
It
said on Tuesday that based on its sum-of-parts target price
calculation, it continued to value Dialog's businesses at 18.9 times
price-to-earnings (P/E), a 40% premium over its CY13 target market P/E
of 13.5 times.
"Attractive prospects for marginal and mature fields are the potential catalysts," it said.
CIMB
Research said Australia's Roc Oil, which holds the biggest stake in
Kuala Lumpur-based BC Petroleum (BCP), said that BCP has hit
hydrocarbons while drilling the fourth well in the pre-development
drilling phase for the Balai marginal field cluster off the coast of
Sarawak.
The West Acis-2 well was drilled to a total depth of
2,307 metres. The drilling rig is now preparing to move northwest to the
Bentara field to drill the Bentara-3 well.
Roc owns 48% of BCP,
which is executing the risk service contract (RSC) for the Balai cluster
that consists of the Balai, Bentara, West Acis and Spaoh fields. Dialog
has a 32% stake in BCP while Petronas Carigali holds the remaining 20%
stake. The Balai cluster RSC is Dialog's first upstream venture.