E&E's 4Q08 net profit of US$5.1m (-62% yoy) came in 19% below our forecast and consensus. Key variances were higher-than-expected opex ratio and interest expense, partially offset by better-than-expected GP margins. Full-year net profit of US$42.6m (+23% yoy) was 3% below our estimate. We have conservatively lowered our FY09 profit forecast by 4%, to assume a much weaker 1H, and by 25% for FY10, to assume a more gradual recovery. We also introduce FY11 forecasts. Our target price, still based on 1x CY09 P/BV, has been trimmed from US$1.94 to US$1.91. Maintain Outperform, nevertheless, for its attractive yields, strong free cash flow, and leading position in China.