HK Stock Market Move | EAST BUY (01797) rises again by more than 15%, supports WeChat Mini Program "Send Gift" function. Institutions are optimistic about the accelerated release of the potential of WeChat e-commerce.

EAST BUY (01797) rose by more than 15% again, as of the time of writing, it had risen by 15.16%, closing at HK$18.84, with a turnover of HK$6.05 billion. On the news front, on December 19, WeChat Mini Program tested the "gifting" function, allowing WeChat users to send purchased items to their WeChat friends in a form similar to "red envelopes." Except for jewelry, education and training categories, and items priced above 10,000 yuan, all products default to supporting the "gifting" function. EAST BUY's official WeChat account announced that its WeChat store has launched the new "gifting" feature that day. CITIC SEC believes that the WeChat Mini Program's "gifting" function, as a new business model, is expected to bring broad optional consumption and "emotional" consumption space. Combined with WeChat's current market position, the subsequent spread and proliferation of the "gifting" function are expected to exceed expectations, with the potential for thematic momentum. From an investment perspective, it is recommended to focus on retail businesses. It is reported that since the launch of its first self-owned product in April 2022, EAST BUY has developed and launched 488 SKU self-owned products within two years, expanding the company's product line to more categories.