The medium-term net profit of China Iron and Titanium (0893.HK) rose 30 per cent year-on-year to 301 million yuan at the end of June, while investing 51 million yuan to form a 51 per cent joint venture to develop the Dasanshu section of the Pingchuan Iron Mine in Sichuan.

Citigroup lowered its profit forecast for this year and next by 22% and 20% on the grounds that its interim results were lower than expected. However, the current price is cheap and the target price is reduced by nearly 30%, still reaching HK $3.59. In terms of the Sichuan joint venture, China Iron and Titanium has local advantages. I believe we can develop more projects.

China Iron and Titanium rose 6.28 per cent to HK $2.2 yesterday.