＜Research＞G Sachs Downgrades EAST BUY (01797.HK) to Sell, Axes TP to $7.1

　　Goldman Sachs' research report lowered its rating on EAST BUY (01797.HK) +0.790 (+8.119%) Short selling $35.86M; Ratio 14.618% from Neutral to Sell and its target price from $15.9 to $7.1. In its view, the recent growth outlook has become murky after the departure of Dong Yuhui and the disposal of Time with Yuhui.

　　Goldman Sachs maintained its FY2024 forecasts largely unchanged, but trimmed its FY2025-27 revenue forecasts by 25-26% to reflect the negative impact of the departure of Dong Yuhui and weaker GMV growth in the remaining businesses in June-July, based on a 32-36% lower GMV forecast. As a result, the broker axed its adjusted net profit forecast for FY2025-27 by 39-40%.

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　　The broker also mentioned that during the conversation with the investors, when they mentioned Time with Yuhui, the other party raised concerns about EAST BUYs corporate governance, mainly in terms of talent retention and capital allocation.

　　(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-07-30 16:25.)

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