Citi published a report that predicts that the annual profit of China Iron and Titanium is 5.9% higher than expected in the prospectus. It has reiterated its “buy” investment rating. The target price is 5.1 yuan. This is equivalent to predicting a price-earnings ratio of 14 times and 9.7 times that of 2010 and 2011. According to the bank, it expects iron and titanium to make a profit of about 341 million yuan for the full year of 2009, up 37% year-on-year, and 5.9% higher than the 322 million yuan forecast in the prospectus, mainly due to a 37.5% year-on-year increase in sales of iron ore related products throughout 2009, which led to a 37% increase in profit. Furthermore, Citigroup believes that according to the current global economy and the weakening of the US dollar, as well as the company's internal growth and potential acquisition projects, are also bright spots for the Group to attract in the future, so it is optimistic about the prospects of iron and titanium. China Iron & Titanium will announce its 2009 annual results on February 22. The stock closed at HK$4.66 yesterday.