Dialog : Proposed special share dividend Outperform
News Update
- Dialog proposed a special share dividend for FY06/09 on the basis of one treasury share for every 50
shares (with approximately 27.7m treasury shares to be distributed). Together with interim and final
dividend of 36 sen, total FY06/09 DPS rises to 57.6 sens or yield of 4.6% (vs. 2.7% in FY06/08).
- Going forward we believe it can sustain yields of 4-7% given its strong operating cash flow and net cash
pile of RM0.09/share.
- Medium term, we highlight potential stronger earnings growth in FY10-11 arising from EPCC jobs (i.e. T2
expansion and Pengerang Terminal) as well as sizeable catalyst handling projects. Reiterate Outperform
and fair value of RM1.58/share.
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