Goldman Sachs pointed out that the performance of New World Department Store China (0825.HK) in the first half of 2011 fell short of expectations, and its management was also cautious about short-term gross margin performance due to increased administrative barriers; the bank lowered New Department Stores' earnings per share by 23%/11% for the 2011-2012 fiscal year; a slight increase of 2% in 2013; the target price was lowered from HK$7.6 to HK$6.3 (equivalent to 18 times the price-earnings ratio in 2011), which reaffirmed its neutral rating. NWDS China closed at HK$5.40 last Friday.