East Buy Holding Limited (1797) AI Stock Analysis

• Market Cap: HK$26.98B
• Dividend Yield: N/A
• Average Volume (3M): 23.72M
• Price to Earnings (P/E): 8260.0
• Beta (1Y): 1.38
• Revenue Growth: -33.04%
• EPS Growth: -98.87%
• Country: HK
• Employees: 1,264
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Specialty Business Services
• EPS (TTM): 0.21
• Shares Outstanding: 1,053,783,600
• 10 Day Avg. Volume: 9,794,422
• 30 Day Avg. Volume: 23,717,320
• PEG Ratio: -22.05
• Price to Book (P/B): 2.41
• Price to Sales (P/S): 2.81
• P/FCF Ratio: 194.70
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$9.00
• Price Target Upside: -63.68% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

• Rating: 53 Neutral
• Price Target: HK$26.00 ▲(4.92% Upside)

The overall stock score is primarily influenced by strong revenue growth and a solid balance sheet. However, the extremely high P/E ratio and cash flow volatility are significant concerns. Technical indicators suggest mixed momentum, with short-term bullishness but medium-term bearish signals.

East Buy Holding Limited Business Overview & Revenue Model

Company Description

Koolearn Technology Holding Limited provides online extracurricular education services in China. It operates through three segments: College Education, K12 Education, and Pre-school Education. The College Education segment offers college and overseas test preparation courses to college students and working professionals. The K12 Education segment provides after-school tutoring and preparation courses for high school and national college entrance exams. The Pre-school Education segment offers online educational content delivered through its Donut English-learning and child education apps. The company provides pre-recorded online education packages to institutional customers, including universities, public libraries, telecom operators, and online video streaming service providers. It also provides software and technology, and education advisory services. The company was founded in 2005 and is headquartered in Beijing, China.

How the Company Makes Money

East Buy Holding Limited generates revenue through multiple channels, primarily by selling consumer electronics and lifestyle products via its e-commerce platforms. The company employs a direct-to-consumer model, allowing it to capture a larger margin by eliminating intermediaries. Key revenue streams include sales from online transactions, subscription services for premium memberships that offer exclusive discounts and early access to sales, and advertising revenue from third-party brands looking to promote their products on East Buy's platforms. Additionally, strategic partnerships with manufacturers and suppliers enable the company to negotiate better pricing, further enhancing its profit margins. The company may also explore collaborations with logistics firms to optimize delivery services, thereby improving customer satisfaction and retention, which are critical for sustained revenue growth.

East Buy Holding Limited Financial Statement Overview

Summary

East Buy Holding Limited exhibits strong financial health highlighted by substantial revenue growth of 44.7%, a net profit margin of 26.4%, and a stable balance sheet with low debt levels. Despite a decline in free cash flow, the company is well-positioned in its industry with a solid foundation for future growth.

Income Statement

East Buy Holding Limited has shown significant revenue growth from the previous year by 44.7%, with an impressive net profit margin of 26.4%, indicating strong profitability. The gross profit margin is healthy at 25.9%, and both EBIT and EBITDA margins are positive at 4.5% and 7.6% respectively, showing operational efficiency. However, the decline in gross profit from the previous year suggests a need for cost management focus.

Balance Sheet

The company maintains a strong equity position with an equity ratio of 75.9%, reflecting financial stability and low leverage risk, with a debt-to-equity ratio of just 0.02. Return on equity is robust at 34.6%, driven by high net income relative to equity. The strong balance sheet supports further growth and investment opportunities.

Cash Flow

Free cash flow has decreased by 34.5% from the previous year, indicating a decline in cash generation capabilities. However, the operating cash flow to net income ratio is 0.5, suggesting that cash flows are well aligned with profitability. The free cash flow to net income ratio of 0.5 indicates a balanced ability to convert profits into available cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.39B	4.39B	6.53B	3.88B	600.53M	623.63M
Gross Profit	1.40B	1.40B	1.69B	1.48B	390.85M	435.03M
EBITDA	-96.75M	112.48M	498.83M	975.29M	-125.34M	-102.76M
Net Income	5.74M	5.74M	1.72B	971.29M	-533.95M	-1.66B
Balance Sheet
Total Assets	6.09B	6.09B	6.54B	3.85B	2.06B	3.29B
Cash, Cash Equivalents and Short-Term Investments	5.02B	5.02B	4.59B	3.00B	1.59B	2.46B
Total Debt	50.78M	50.78M	94.81M	51.00M	48.77M	313.83M
Total Liabilities	974.55M	974.55M	1.57B	1.05B	418.38M	1.28B
Stockholders Equity	5.12B	5.12B	4.97B	2.80B	1.64B	2.01B
Cash Flow
Free Cash Flow	63.46M	63.46M	820.23M	1.25B	-938.40M	-1.03B
Operating Cash Flow	89.29M	89.29M	856.09M	1.26B	-918.07M	-913.67M
Investing Cash Flow	195.50M	195.50M	202.75M	-737.55M	-26.37M	659.11M
Financing Cash Flow	-53.12M	-53.12M	-14.77M	55.64M	-45.40M	1.41B

East Buy Holding Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.78
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1797, the sentiment is Positive. The current price of 24.78 is below the 20-day moving average (MA) of 24.95, below the 50-day MA of 27.22, and above the 200-day MA of 17.37, indicating a neutral trend. The MACD of -0.34 indicates Negative momentum. The RSI at 49.82 is Neutral, neither overbought nor oversold. The STOCH value of 47.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1797.

East Buy Holding Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0839	76 Outperform	HK$8.54B	24.48	1.91%	10.43%	12.33%	-80.20%
9901	73 Outperform	€74.73B	24.59	10.30%	―	13.12%	20.82%
0667	64 Neutral	HK$14.98B	21.31	11.36%	3.18%	7.48%	87.88%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2469	59 Neutral	HK$6.29B	29.89	13.58%	―	-10.99%	-50.16%
1797	53 Neutral	HK$26.98B	8,260.00	0.08%	―	-33.04%	-98.87%

East Buy Holding Limited Corporate Events

East Buy Holding Limited Announces Board Changes

East Buy Holding Limited announced a change in its board of directors and board committee compositions. Mr. Tong Sui Bau has resigned from his positions, and Mr. Yan Andrew Y has been appointed as an independent non-executive director, chairman of the Audit Committee, and a member of the Remuneration and Nomination Committees. Mr. Yan brings extensive experience from his previous roles in various major companies, which may enhance East Buy’s strategic positioning and governance.

East Buy Holding Limited Announces Board Roles and Functions

East Buy Holding Limited, incorporated in the Cayman Islands, has announced the list of its board of directors and their roles within the company. The board consists of executive directors, a non-executive director, and independent non-executive directors, each serving on various board committees such as the Audit, Remuneration, and Nomination Committees. This announcement provides clarity on the leadership structure, which is crucial for stakeholders as it outlines the governance and strategic oversight of the company.

East Buy Holding Reports Revenue Decline Amidst Strategic E-commerce Expansion

East Buy Holding Limited announced its unaudited interim results for the six months ending November 2024, reporting a decline in revenue and profit compared to the previous year. The company’s strategic focus on promoting high-quality private label products and enhancing its e-commerce platform highlights its commitment to supporting local producers and improving supply chain efficiency, despite current financial challenges.