DIALOG (TP RM1.46- BUY) 1QFY: A Slower Quarter

Dialog’s 1QFY09 results were below expectations, making up only 18% of consensus and our FY09 forecasts respectively. Hence, we are reducing our FY09-10 earnings by 12%-14% to take into account of the slower O&G activities as we move forward to 2009 following the slowdown in global economy which will result in lower demand for crude oil. Nevertheless, we still like Dialog as a defensive stock in its sector. Maintain Buy with a target price of RM1.46.