Daiwa maintains the New World Department Store China (0825.HK) holding rating, and the target price remains unchanged at HK$8.00 (equivalent to the predicted price-earnings ratio of 21 times in FY11). According to the results announced by New World Department Store China during the lunch break on Monday, net profit increased 5.5% over the previous year to HK$578 million. According to Yamato, this was a lackluster performance; the bank noted that due to increased promotions and the opening of new stores, its commission rate fell 19.4% from the previous year. According to Yamato, the company's management said that in view of the further deterioration of the competitive environment in FY10, the company had to carry out promotions, and this competitive situation is unlikely to change in the next 3 years. NWDS China closed down 1.0% to HK$7.90 on Monday.