Kingboard's 4Q08 net loss of HK$20m (vs. profit of HK$81m in 4Q07) was bigger than our loss expectation of HK$14m. However, the results included a HK$77m impairment charge for old inventories and HK52m gains from derivative instruments. Excluding these, it would have reported a net profit of HK$5m, ahead of our expectation on better-than-expected GP margin. Full-year core net profit was 14% above our forecast and consensus. We have kept our FY09-10 estimates relatively unchanged as we had pared down our expectations in January. Our target price, still based on 0.43x CY09 P/BV, has been lifted slightly from S$0.26 to S$0.27. We believe all negatives are priced in, as evident in its resilient share price. Maintain Outperform, as we believe the group has the financial capability and strong parentage to ride through the difficult times.