Citi Reiterates Buy and PT of $23 on Sky-mobi (MOBI)

Citi reiterated its Buy rating on Sky-mobi

. It also left its price target unchanged at $23. In a research report published today, Citi justified its decision with better than expected Q4 2010 results and upcoming new products. In the report, Citi states, "FYQ4 revenue of Rmb177m beat top-end guidance of Rmb171m and Street forecasts. Non-IFRS net profit grew 48% yoy to Rmb17.5m. FY11 revenue was Rmb675m (vs. CIRA Rmb649m), and non-IFRS net profit Rmb55m (vs. CIRA Rmb43m). Non-IFRS gross margin was 32% in FY11 (vs. CIRA 30%) and operating margin 11% (vs. CIRA 9%). Management highlighted a number of positive strategic developments and plans, including plans to launch the company's Smartphone (SP) Android platform in Sept. Reiterate Buy and TP of US$23." In yesterday's trading, Sky-mobi's shares slumped 10% to close the day at $23.