(DLG MK/HOLD/RM1.83/Target: RM1.72)

As the Pengerang complex gains international profile with the entry of Saudi Aramco, there
is renewed investor interest for more storage terminals. We estimate an additional storage
capacity of up to 5m cbm, implying SOTP accretion of up to RM0.90/share. Although this is
over the long term and has not been priced in, current valuations reflect near-term earnings
upside as peak storage rates were more resilient than expected. Maintain HOLD with a
higher target price of RM1.72. Entry price: RM1.55.
 

Source: UOB Kay Hian Research - 12 Apr 2017