BOCOM INTL: EAST BUY (01797) "Neutral" rating with target price raised to 15.6 Hong Kong dollars.

BOCOM INTL released a research report stating that, considering the decrease in shares, the target price of EAST BUY (01797) has been increased from 14.9 Hong Kong dollars to 15.6 Hong Kong dollars, with a rating of "neutral". The report mentioned that as of the first half of the 2025 fiscal year ending November 30th of last year, EAST BUY's ongoing operating revenue decreased by 9% year-on-year. Excluding the financial impact of selling "Yuhui Together", the adjusted net profit from ongoing operations was 32.70 million Chinese yuan, with short-term financial performance being affected by business adjustments during the period. BOCOM INTL stated that they have observed a trend of business recovery for the company, with the gross profit margin showing growth. It is expected that EAST BUY will continue to focus on developing self-owned products, establishing brand influence, increasing APP membership, and strengthening resource synergy with NEW ORIENTAL-S (09901). With the recent introduction of gift-giving functionality on WeChat mini shops, EAST BUY is expected to explore potential new sales channels and lay the foundation for attracting new users. It is anticipated that financial data will bottom out in the 2025 fiscal year and stabilize growth thereafter.