East Buy Holding Limited (1797) AI Stock Analysis

• Market Cap: HK$16.99B
• Dividend Yield: N/A
• Average Volume (3M): 11.39M
• Price to Earnings (P/E): 63.0
• Beta (1Y): 1.42
• Revenue Growth: 11.24%
• EPS Growth: -114.61%
• Country: HK
• Employees: 1,264
• Sector: Technology
• Sector Strength: 94
• Industry: Education & Training Services
• EPS (TTM): -0.10
• Shares Outstanding: 1,046,424,600
• 10 Day Avg. Volume: 14,220,156
• 30 Day Avg. Volume: 11,390,184
• PEG Ratio: N/A
• Price to Book (P/B): 2.67
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -69.15
• 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$13.50
• Price Target Upside: -16.87% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 66 Neutral
• Price Target: HK$14.00 ▼(-13.79%Downside)

The overall stock score reflects strong financial performance and stability, significantly offset by technical indicators that suggest a lack of strong momentum and a negative valuation due to the high negative P/E ratio. The absence of earnings call insights and corporate events further consolidates the reliance on financial and valuation metrics.

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 makes money through its diverse revenue model that includes several key streams. Primarily, the company generates revenue by offering online courses and educational content to students, which are often subscription-based or charged per course. Additionally, it licenses its technology platforms to educational institutions, enabling them to deliver content and monitor student progress, for which it charges a service fee or a licensing fee. The company may also partner with third-party content creators or educational institutions to broaden its content offering, sharing revenue through these collaborations. Significant factors contributing to its earnings include the growing demand for online education and expansion into new educational markets.

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	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	6.53B	4.51B	600.53M	623.63M	1.08B
Gross Profit	1.69B	1.95B	390.85M	435.03M	493.09M
EBITDA	498.83M	1.09B	2.52M	-102.76M	-867.37M
Net Income	1.72B	971.29M	-70.98M	-253.99M	-742.00M
Balance Sheet
Total Assets	6.54B	3.85B	2.06B	3.29B	3.05B
Cash, Cash Equivalents and Short-Term Investments	4.59B	3.00B	1.59B	2.46B	2.23B
Total Debt	94.81M	51.00M	48.77M	313.83M	325.48M
Total Liabilities	1.57B	1.05B	418.38M	1.28B	1.19B
Stockholders Equity	4.97B	2.80B	1.64B	2.01B	1.86B
Cash Flow
Free Cash Flow	820.23M	1.25B	-938.40M	-1.03B	-601.28M
Operating Cash Flow	856.09M	1.26B	-918.07M	-913.67M	-521.43M
Investing Cash Flow	202.75M	-737.55M	-26.37M	659.11M	-1.43B
Financing Cash Flow	-14.77M	55.64M	-45.40M	1.41B	-135.49M

East Buy Holding Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.24
• 50DMA: Positive
• 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 16.24 is above the 20-day moving average (MA) of 12.86, above the 50-day MA of 12.59, and above the 200-day MA of 14.27, indicating a bullish trend. The MACD of 0.48 indicates Negative momentum. The RSI at 69.32 is Neutral, neither overbought nor oversold. The STOCH value of 75.18 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
1797	66 Neutral	HK$16.99B	63.02	-2.35%	―	11.24%	-114.61%
Sector *	64 Neutral	S$617.30M	14.58	0.69%	5.92%	2.72%	-27.37%
N1U0	―	€7.16B	19.51	10.21%	―	―	―
1773	―	HK$8.68B	11.65	27.25%	2.10%	―	―
0839	75 Outperform	HK$8.23B	23.60	1.91%	10.82%	12.33%	-80.20%
0667	75 Outperform	HK$16.23B	28.89	9.04%	2.98%	1.50%	82.34%
2469	67 Neutral	HK$7.86B	29.97	19.40%	―	-9.70%	23.51%

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.