Citi maintained the Pearl River Steel Pipe (1938.HK) buying rating, with a target price of HK$4.18. Citi said that Pearl River Steel Pipeline's interim results (announced after closing on Friday) were strong, and net profit increased 119 percent year over year to RMB 113 million, in line with the bank's expectations. According to Citi, the improved performance of Pearl River Steel Pipe was mainly due to strong export growth (up 256% year on year) and increased orders from domestic customers. The bank pointed out that Pearl River Steel's gross profit margin for the first half of 2011 also rebounded to a normal level of 17% from 14% in the second half of 2010. Pearl River Steel Pipeline dropped 5.9% yesterday to close at HK$3.18.