Kuala lumpur: Dialog Group Bhd is poised to remain highly resilient in a volatile environment, particularly amid the West Asia conflict, thanks to its diversified business model, said Hong Leong Investment Bank Bhd (HLIB). According to BERNAMA News Agency, the investment bank highlighted that Dialog's midstream tank terminal segment provides stable, recurring income, while its upstream operations benefit from elevated Brent crude prices. This strategic positioning allows Dialog to navigate through geopolitical uncertainties effectively. Furthermore, New Zealand is exploring fuel storage options in Malaysia and Singapore as geopolitical conflicts reveal the risks associated with limited domestic storage capacity and reliance on single supply routes. This situation is expected to further elevate Pengerang's strategic importance as a premier regional storage and logistics hub. Dialog emerges as a primary beneficiary, given its substantial tank terminal footprint and approximately 267.09 hectares of available buffer land dedicated to future expansion. This positions Dialog favorably to capitalize on the growing demand for regional storage solutions. HLIB maintains a 'buy' call on Dialog with an unchanged target price of RM2.52, citing the potential award of long-term tank terminal contracts for Pengerang Deepwater Terminals Phase 3 as a key re-rating catalyst for the stock. The bank appreciates Dialog for its robust recurring income streams and its unique positioning to leverage Pengerang's long-term expansion through ongoing tank terminal developments. At 10.25 am, Dialog's stock was three sen higher at RM1.92 with 1.71 million shares transacted, reflecting investor confidence in its resilient business model and strategic growth prospects.
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