New venture to diversify Dialog’s income base

MIDF Research said Dialog’s first venture into the production of specialty chemicals could potentially act as a catalyst for the latter’s expansion in the petrochemical sector.

PETALING JAYA: Dialog Group Bhd’s venture into specialty chemicals production bodes well for the company’s long-term growth as it helps diversify its income base while generating good returns.

It is estimated that the new venture could deliver an internal rate of return (IRR) in double digits for the integrated technical service provider to the energy sector, with a payback period of within 10 years, according to RHB Research, citing management’s guidance.