The liquefied natural gas (LNG) terminal project in Pengerang, Johor, is expected to complement Dialog Group Bhd's business soon and boost recurring income once the terminal is operational.
In a note today, OSK Research said the project, if successfully implemented, would complement Dialog's business by generating jobs for its service provider division.
Dialog is part of the consortium with Royal Vopak NV and the Johor state government, that plans to invest some RM4.08 billion in the development of the terminal.
"We believe the new investment is positive for the company in the long run in view of the stronger demand for LNG in this region following the Fukushima incident in 2011," he said.
The research house has maintained its 'buy' call on the company with unchanged fair value at RM3.16.
Meanwhile, AmResearch in its note, also maintained its 'buy' call on the company with an unchanged fair value at RM2.85.
It also maintained the financial year 2012-2014 forecasts for net profits with the expectation of further positive newsflow for the group.
-- BERNAMA