1Q09 core net profit S$8m was in line expectations, forming 24% and 30% of the street's full year estimates. The quarter saw healthy good presale proceeds blemished by weaker construction revenues. Outstanding order book in 1Q09 stood at S$741m, some 25% lower than management's yearly projected target of S$1bn. Overall, revenue improved by S$15m yoy to S$149m. Balance sheet manageable as UE received proceeds from the CBs with net gearing manageable at 0.66x. We adjust our FY09-11 core EPS -28% to +5% on changes to our recognition schedule. We also raise our target FY10 PE for its construction business from 2x to 8x. End CY09 RNAV is lifted from S$2.21 to S$2.33 as a result. Target price, still based on 20% discount to RNAV, is raised from S$2.53 to S$1.87. Trading at 0.4x P/BV, we continue to see good asset based value in the stock. Maintain Outperform.