Dialog's Share Price Up In Early Trade

KUALA LUMPUR, July 30 (Bernama) -- Dialog Group Bhd's (Dialog) share price was up in early morning trade today after its indirect subsidiary expanded storage facilities in Tanjung Langsat, Johor.

At 10.26 am, Dialog increased 1.0 sen to RM2.37 with 712,800 shares traded. 

Yesterday, in a Bursa Malaysia filing, the company said Dialog Terminals Langsat (3) Sdn Bhd (DTL3) will expand storage facilities by an additional 150,000 cubic metres (m3) for renewable and petroleum products at its Tanjung Langsat terminal, Johor.

Dialog said the first 100,000 m3 is dedicated to EcoCeres Ltd, a subsidiary of EcoCeres Inc, and the remaining 50,000 m3 is expected to be leased to third-party customers such as multinational companies and trading houses.

It said the expansion project was expected to be completed in the first quarter of the financial year 2027 (1Q FY2027).

In a note today, Maybank Investment Bank Bhd said earnings forecasts for 2024-2026 financial years remain unchanged but it has factored this development into its target price (TP), lifting it to RM3.17 per share.

"Further re-rating catalysts for Dialog will be earnings delivery and new tank terminal contracts in Pengerang," it said. 

Maybank Investment Bank maintains a “Buy” call with Dialog being a top pick in its sector.

Meanwhile, Public Investment Bank Bhd is positive about this latest development as it will raise DTL3’s overall capacity. 

"All in, we make no changes to our estimates as the completion of the expansion is expected in 1Q FY2027. We maintain our “Neutral” call with a slight increase in our TP to RM2.61 per share," it said. 

-- BERNAMA