Barclays stated in its research report that due to slower sales and rising costs of Ajisen (China) Holdings (HKG:0538), it downgraded the stock's rating from Overweight to Equal Weight, cut its target price by 45% to HK$6 and trimmed its earnings forecasts for 2012 and 2013 by 53%.

The brokerage said that the company's same store sales (SSS) trends continue to be down more than 20% on year, so it lowered its revenue estimates by 10-15%. Meanwhile, the brokerage stated that the effect of lower sales productivity on fixed costs is impacting earnings before interest and taxes (EBIT) margins, and staff costs are rising by more than previously expected.