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<Research>CICC Axes EAST BUY (01797.HK) TP by 68% to $11.5, Keeps Outperform Rating

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2024-07-29 09:23

CICC released a report on EAST BUY (01797.HK). Taking into account the solid performance of its main account and Douyin account matrix during the peri...

  CICC released a report on EAST BUY (01797.HK) +0.540 (+5.684%) Short selling $235.13M; Ratio 26.327% . Taking into account the solid performance of its main account and Douyin account matrix during the period, as well as the outstanding contribution from its sub-account “Time With Yuhui”, the broker raised its FY24 revenue forecast for the company by 1.7% to RMB6.18 billion, equivalent to a YoY growth of 37%. Taking into account the disposal of Time With Yuhui, the divestment of its education business, and the solid contribution from its self-operated products, the broker also elevated its FY25 revenue forecast by 1.7% to RMB5.88 billion.

  CICC expected EAST BUY's FY24 adjusted net profit forecast to crumple by 53% YoY to approximately RMB511 million, corresponding to an adjusted net profit margin of 8.3% and a YoY crash of around 15.9 ppts, mainly due to an increase in the share of self-operated products with lower gross profit margins. The broker's adjusted net profit forecast on the company for FY25 was slashed by 73% to RMB330 million, while the revenue and adjusted net profit forecasts for FY26 were introduced at RMB6.45 billion and RMB420 million respectively.

  Related NewsBOCOMI Expects EAST BUY (01797.HK) FY2025 Profit to Drop 20%+ after Excl. Yuhui Tongxing Contribution

  CICC maintained an Outperform rating on EAST BUY and significantly axed its target price by 68% to $11.5.

  (HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-07-26 16:25.)

  AAStocks Financial News

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