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Tuesday, March 1, 2011

TASCO – Buy (Jupiter)

The stock is priced now at an even more attractive PER of 4.1x and offers a dividend yield of 7.1% by our estimates based on a now-plausible dividend per share of 10 sen per share. The stock also trades at just 0.66x NTA per share. BUY. Earnings are not as vulnerable to fuel price hikes as would be the case for most support services for export-oriented industries. Our price target has been maintained at RM1.76 for a 25.7% upside in light of falling market earnings multiples, which partly offsets the upgrade in earnings estimates.

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