HK Stock Market Move | EAST BUY (01797) rose by over 16% in the afternoon. The stock price has increased by 25% in the past two trading days, and was cut in half in less than a month.

EAST BUY (01797) rose more than 16% in the afternoon, with the stock price rising more than 25% in the past two trading days. It is worth noting that the stock price dived after hitting a new high on August 19, dropping by more than 50% in less than a month. As of the time of writing, it is up by 15.73%, at 26.78 Hong Kong dollars, with a turnover of 2.264 billion Hong Kong dollars, and a trailing price-to-earnings ratio as high as 4436. On the news front, Citigroup recently pointed out in a research report that due to the shift of EAST BUY's business model from "relying on top anchors" to "scalable membership platforms", revenue forecasts for the fiscal years 2025 to 2027 have been revised downwards by 36%, 31%, and 30% respectively, while profit forecasts have been revised downwards by 69%, 30%, and 26% respectively. The target price has been raised from 18.5 Hong Kong dollars to 33 Hong Kong dollars. The bank expects the membership platform to have 264,000 paid members, with a monthly repurchase rate of 40%; the gross profit margin of its own brand is expected to recover from a low of 10% to 24%; it is projected that the adjusted net profit margin will reach 7% to 8% by 2028, compared to the current 4%; the bank maintains a "buy" rating but believes that the effectiveness of the transformation still needs to be verified through performances over several quarters.