CGS-CIMB Research ups Dialog target price to RM5.23

KUALA LUMPUR: Dialog Group’s RM100mil investment to expand its Langsat tank terminal capacity, which was faster than CGS-CIMB Equities Research’s forecast, has prompted the research house to maintain its Add call and sum-of-parts target price of RM5.23. Last traded price was RM3.73.

It was reported that Dialog will invest RM100mil to expand its unit Langsat terminals by a further 85,000 cubic metres (cbm) of clean petroleum tanks, on top of the existing 767,000 cbm capacity that has been fully leased out. Dialog also told the press that the Langsat 3 terminal still has 17 acres of land area available to build another 200k cbm of storage tanks over the longer term, taking the total Langsat tank terminal capacity to over 1m cbm.