HK Stock Market Move | EAST BUY (01797) fell more than 3%, will release first half financial performance tomorrow, institutions pointed out that the separation of the live broadcast room brings pain.

EAST BUY (01797) dropped more than 3%, as of the time of writing, it fell 3.35% to HK$16.16, with a turnover of HK$2.14 billion. On the news front, EAST BUY will release interim results for the six months ending November 30, 2024 on January 21 (this Tuesday). Shenwan Hongyuan Group pointed out that the expected revenue for 1HFY25 of EAST BUY is about HK$2.4 billion, a year-on-year decrease of 14.1%; adjusted net profit attributable to shareholders is HK$64 million, a year-on-year decrease of 87.3%. The negative year-on-year growth in revenue and profit is mainly due to the divestment of the "Together with Hui" livestreaming platform. The divestment affected sales revenue on one hand, and the one-time expenses such as Dong Yuhui's bonus incentives on the other hand significantly impacted the profit. According to the report from Shenwan Hongyuan Group, despite the company still consolidating the sales revenue from the "Together with Hui" livestreaming room for the 6th and 7th months of 1HFY25, business adjustments have still caused the GMV to decline by nearly 5.1% to HK$54.1 billion. From August to November, GMV from Douyin was HK$459 million, HK$472 million, HK$570 million, and HK$720 million respectively, indicating a gradual recovery of the company's GMV. At the same time, the company is actively laying out WeChat mini-programs, making them another important part of its shelf e-commerce model. The bank believes that the sales volume of WeChat mini-programs in the future will help drive the company's GMV growth.