HK Stock Market Move | EAST BUY (01797) morning turned down more than 4%, total revenue and profit for the 2026 fiscal year are expected to increase significantly.

EAST BUY (01797) fell by more than 4% in the morning, but rose by over 3% after the profit announcement. As of press time, it fell by 2.06% to HK$21.86, with a turnover of HK$257 million. On the news front, on July 23, EAST BUY announced that the group expects a substantial increase in total revenue and profit for the fiscal year ending May 31, 2026 (fiscal year 2026). Total revenue for fiscal year 2026 is expected to be between RMB 5.6 billion and RMB 5.8 billion, compared to RMB 4.4 billion for the fiscal year ending May 31, 2025 (fiscal year 2025), representing a year-on-year increase of approximately 27.3% and 31.8% respectively. Net profit for fiscal year 2026 is expected to be between RMB 520 million and RMB 550 million, compared to RMB 6 million for fiscal year 2025, representing a year-on-year increase of 8566.7% and 9066.7% respectively. Citi released a research report stating that EAST BUY's median net profit margin for fiscal year 2026 is approximately 9.4%, a significant improvement from 0.1% in fiscal year 2025, reflecting the first results of the member platform business transformation in profit data. Business growth momentum mainly comes from the second half of the fiscal year, with management attributing performance improvement to the optimization of own brand scale and product portfolio, increased number and duration of Douyin live broadcast accounts, and expansion of the company's App membership base. Citi stated that it is awaiting the company's audited performance announcement on August 21, when it will re-examine the financial model.