Nomura raised its target price for New World China (0825.HK) to HK $4.60 from HK $4.10, rating it neutral.

Nomura said the company made a profit of HK $608 million in fiscal 12, 8% higher than the bank's expectations, mainly due to cost control, better-than-expected operating income, and management confidence in fiscal year 13 growth.

Nomura pointed out that by the end of June, about 75% of the sales area of the new department store had been decorated with a new image, which could be fully completed by the end of this year, when same-store sales are expected to increase.