Published: Thursday June 14, 2012 MYT 8:24:00 AM
RHB Research has Outperform on Dialog, FV RM2.90
KUALA LUMPUR: RHB Research Institute has an Outperform on Dialog Group with affair value of RM2.90 after its 60%-owned subsidiary Dialog Jubail Supply Base, has commenced operations in Saudi Arabia.
The subsidiary had secured a long term contract worth around RM17mil from Snamprogetti Saudi Arabia Co.
RHB Research said on Thursday said this development was positive as it signals the start of Dialog's Saudi logistics operations and leverages on the company's facilities management experience in Kerith Terminals.
Dialog invested around RM93.5mil on the 3.45-ha supply base in 2011. The supply base is located in the Jubail Commercial Port, and has a 20-year lease (at an annual lease rental of RM600,000) from the Saudi Ports Authority in Jubail with an option to extend for a further five years.
“Our forecasts have not factored in any earnings contribution from the supply base pending the award of more contracts,” it said.