East Buy Holding Limited (1797) AI Stock Analysis

• Market Cap: HK$22.38B
• Dividend Yield: N/A
• Average Volume (3M): 24.18M
• Price to Earnings (P/E): 7080.0
• Beta (1Y): 1.31
• 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: 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$10.20
• Price Target Upside: -49.70% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: HK$20.00 ▼(-1.38% Downside)

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.

East Buy Holding Limited Business Overview & Revenue Model

Company Description

East Buy Holding Limited (1797) is a prominent player in the e-commerce sector, primarily focusing on the retail of consumer electronics and lifestyle products. The company operates through various online platforms, catering to a diverse customer base by providing a wide range of products including mobile devices, home appliances, and fashion items. East Buy Holding Limited aims to enhance the online shopping experience through competitive pricing, efficient logistics, and a customer-centric approach, establishing a strong presence in the digital marketplace.

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: 20.28
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• 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 20.28 is below the 20-day moving average (MA) of 22.82, below the 50-day MA of 24.04, and above the 200-day MA of 17.74, indicating a neutral trend. The MACD of -0.99 indicates Positive momentum. The RSI at 32.75 is Neutral, neither overbought nor oversold. The STOCH value of 15.23 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$8.23B	23.60	1.91%	10.82%	12.33%	-80.20%
9901	73 Outperform	€75.03B	25.71	9.39%	―	7.07%	-2.52%
2469	64 Neutral	HK$6.60B	31.68	13.58%	―	-10.99%	-50.16%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
0667	61 Neutral	HK$14.36B	20.43	11.36%	3.44%	7.48%	87.88%
1797	49 Neutral	HK$22.38B	7,080.00	0.08%	―	-33.04%	-98.87%

East Buy Holding Limited Corporate Events

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.

The most recent analyst rating on (HK:1797) stock is a Sell with a HK$10.20 price target. To see the full list of analyst forecasts on East Buy Holding Limited stock, see the HK:1797 Stock Forecast page.

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.

The most recent analyst rating on (HK:1797) stock is a Hold with a HK$26.00 price target. To see the full list of analyst forecasts on East Buy Holding Limited stock, see the HK:1797 Stock Forecast page.

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.

The most recent analyst rating on (HK:1797) stock is a Sell with a HK$9.00 price target. To see the full list of analyst forecasts on East Buy Holding Limited stock, see the HK:1797 Stock Forecast page.

East Buy Holding Limited Reports Annual Results with Decline in Revenue and Profit

East Buy Holding Limited announced its annual results for the year ended May 31, 2025, reporting a significant decline in revenue and profit compared to the previous year. The company completed the disposal of its education business in March 2024, impacting its financial performance. Despite the drop in profit, East Buy continues to focus on its core business of private label products and livestreaming e-commerce, aiming to enhance its market position by offering high-quality products and improving supply chain efficiency.

The most recent analyst rating on (HK:1797) stock is a Hold with a HK$14.00 price target. To see the full list of analyst forecasts on East Buy Holding Limited stock, see the HK:1797 Stock Forecast page.

East Buy Renews EDU Framework Agreement with New Oriental

East Buy Holding Limited has renewed its EDU Framework Agreement with New Oriental, a controlling shareholder, to continue providing goods such as agricultural products and beverages. This renewal, effective from August 22, 2025, to May 31, 2026, sets annual transaction caps and adheres to the reporting and announcement requirements under the Hong Kong Listing Rules, exempting it from circular and independent shareholder approval. The agreement reflects expected growth in demand from New Oriental and aims to accommodate the introduction of new products as East Buy’s product line expands.

The most recent analyst rating on (HK:1797) stock is a Hold with a HK$14.00 price target. To see the full list of analyst forecasts on East Buy Holding Limited stock, see the HK:1797 Stock Forecast page.

East Buy Holding Limited Announces Key Management Changes

East Buy Holding Limited has announced the resignation of Mr. Cheung Kai Cheong Willie from his roles as company secretary, authorized representative, and process agent. In his place, Ms. Song Jie and Ms. Ma Wing Yee have been appointed as joint company secretaries, with Ms. Ma also serving as the authorized representative and process agent. Ms. Song brings extensive experience in capital market communication, corporate governance, and investor relations, while Ms. Ma has over 10 years of experience in corporate governance and company secretarial practice. These changes are expected to enhance the company’s corporate governance and compliance capabilities.

The most recent analyst rating on (HK:1797) stock is a Hold with a HK$14.00 price target. To see the full list of analyst forecasts on East Buy Holding Limited stock, see the HK:1797 Stock Forecast page.