HSBC pointed out that the new department store (00825.HK) same-store sales fell 4.3 per cent and sales revenue was stable, in line with expectations, but operating profit in the second half was 29 per cent lower than the bank's expectations, mainly due to lower-than-expected income from higher operating expenses and management fees. However, due to lower taxes and higher financial income, the company's second-half net profit was only 24% lower than expected, while full-year net profit was 12% lower than market expectations.

The bank expects higher-margin management and consultancy fees to be the main driver of the company's growth, which is greater than the same-store sales growth in licensed over-the-counter sales. The company's income from management and consulting fees will double in 2015, while rental income will rise by 19%. Profits are expected to grow by 6% next year, maintaining the "overweight" rating, but lowering the target price from 4.1 yuan to 3.7 yuan.