East Buy Holding Limited (1797) AI Stock Analysis

• Market Cap: HK$19.30B
• Dividend Yield: N/A
• Average Volume (3M): 24.18M
• Price to Earnings (P/E): 5983.3
• Beta (1Y): 1.44
• 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: 1,053,803,600
• 10 Day Avg. Volume: 12,721,495
• 30 Day Avg. Volume: 24,181,971
• 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$17.10
• Price Target Upside: -6.61% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: HK$20.00 ▲(9.23% Upside)

The overall stock score is primarily impacted by the bearish technical indicators and extremely high P/E ratio, suggesting overvaluation. While the company shows strong revenue growth and a solid balance sheet, concerns about profitability and cash flow volatility weigh heavily on the score.

Positive Factors

Strong Revenue Growth

The substantial revenue growth indicates a strong market position and effective business strategies, enhancing long-term competitive advantage.

Solid Balance Sheet

A solid balance sheet with low leverage provides financial stability and flexibility, supporting sustainable growth and resilience against economic fluctuations.

Direct-to-Consumer Model

The direct-to-consumer model enhances profit margins and customer engagement, driving long-term profitability and market differentiation.

Negative Factors

Profitability Concerns

Inconsistent profitability metrics highlight challenges in cost management and pricing strategy, potentially impacting long-term financial performance.

Cash Flow Volatility

Volatile cash flow can hinder investment and operational flexibility, posing risks to sustainable growth and financial health.

Decreasing Gross Profit Margin

A declining gross profit margin suggests rising costs or pricing pressures, which could erode profitability and competitive positioning over time.

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 demonstrates strong revenue growth and a solid balance sheet with low leverage. However, profitability and cash flow metrics indicate areas of concern, with inconsistent margins and cash flow volatility. Continued focus on improving profitability and cash conversion will be crucial for future stability.

Income Statement

The company has shown significant revenue growth, particularly in the latest year with a 100.86% increase. However, profitability metrics such as the net profit margin and EBIT margin have been inconsistent, with recent improvements but still low margins. The gross profit margin has decreased over time, indicating potential cost pressures.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio, indicating low leverage and financial stability. The return on equity has improved significantly, reflecting better profitability. However, the equity ratio suggests a moderate level of equity financing relative to total assets.

Cash Flow

Cash flow metrics show volatility, with a significant decline in free cash flow growth recently. The operating cash flow to net income ratio is low, indicating potential issues in converting income to cash. However, the free cash flow to net income ratio remains relatively healthy.

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: Negative
• Last Price: 18.31
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1797, the sentiment is Negative. The current price of 18.31 is below the 20-day moving average (MA) of 19.17, below the 50-day MA of 20.56, and below the 200-day MA of 18.54, indicating a bearish trend. The MACD of -0.64 indicates Positive momentum. The RSI at 36.57 is Neutral, neither overbought nor oversold. The STOCH value of 14.86 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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$9.35B	8.85	5.90%	9.49%	11.85%	100.46%
9901	73 Outperform	HK$70.78B	24.39	9.39%	1.07%	7.07%	-2.52%
0667	67 Neutral	HK$15.45B	21.97	11.36%	3.15%	7.48%	87.88%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2469	54 Neutral	HK$4.80B	22.63	13.58%	―	-10.99%	-50.16%
1797	49 Neutral	HK$19.30B	5,983.33	0.08%	―	-33.04%	-98.87%

East Buy Holding Limited Corporate Events

East Buy Holding Limited Invests in Wealth Management Products

East Buy Holding Limited has announced its subscription to wealth management products offered by China Guangfa Bank (CGB) and China Merchants Bank (CMB). The company has invested RMB100 million in CGB with an expected annualized return of 2.80% and RMB50 million in CMB with a floating return between 2.30% and 3.30%. These transactions are part of East Buy’s strategy to utilize surplus cash for treasury management, reflecting its proactive approach to financial management and investment. The CGB subscription is considered a major transaction due to its size, while the CMB subscription is a discloseable transaction. The company has obtained necessary shareholder approval for the CGB subscription, indicating strong backing from its major shareholder, New Oriental.

East Buy Holding Limited Announces Successful AGM Resolutions

East Buy Holding Limited announced the successful passing of all proposed resolutions during its Annual General Meeting held on November 3, 2025. The resolutions included the re-election of directors, the re-appointment of the external auditor, and the granting of mandates to the board for share issuance and repurchase, indicating strong shareholder support and potentially impacting the company’s future strategic decisions.

East Buy Holding Limited Enhances Treasury Management with New Wealth Management Subscription

East Buy Holding Limited announced a subscription to a wealth management product offered by CMBC with a principal amount of RMB50 million, aiming to maximize surplus cash utilization through treasury management. The subscription, characterized by non-guaranteed principal and floating returns, is part of a broader strategy to achieve balanced yields with low risk, enhancing the company’s earnings without affecting its working capital or operations.

East Buy Holding Limited Announces AGM and Key Resolutions

East Buy Holding Limited has announced its upcoming Annual General Meeting (AGM) scheduled for November 3, 2025, in Beijing. The meeting will cover several key resolutions, including the re-election of directors and the reappointment of Deloitte Touche Tohmatsu as the company’s auditor. Additionally, a Share Issue Mandate will be considered, allowing the directors to issue new shares up to 20% of the current issued shares, excluding treasury shares, during a specified period.