East Buy Holding Limited (1797) AI Stock Analysis

• Market Cap: HK$26.63B
• Dividend Yield: N/A
• Average Volume (3M): 24.18M
• Price to Earnings (P/E): 20.7
• Beta (1Y): 1.57
• 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): 0.25
• Shares Outstanding: 1,054,043,100
• 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$28.57
• Price Target Upside: 13.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.42
• Revenue Forecast (FY): HK$5.17B

• Rating: 62 Neutral
• Price Target: HK$27.00 ▲(6.97% Upside)
• Action: Reiterated Date: 02/06/26
• Date: Action: Reiterated 02/06/26

The score is driven primarily by solid financial fundamentals (rapid revenue growth and low leverage) but capped by weaker cash-flow quality and inconsistent profitability. Technicals are strong but show overbought conditions that raise short-term risk. Valuation is the biggest headwind due to the very high P/E and lack of dividend support.

Positive Factors

Revenue Growth

A 100.86% year-over-year revenue surge indicates strong product-market fit and scalable e-commerce/live-stream distribution. Durable top-line expansion provides a base for improved unit economics, funds reinvestment in channels, and supports multi-quarter growth momentum if execution holds.

Low Leverage / Strong Balance Sheet

A low debt-to-equity position gives the company flexibility to invest in inventory, technology and marketing without imminent refinancing pressure. This structural balance-sheet strength reduces default risk and supports sustained investment through medium-term growth cycles.

Improving Return on Equity

Material improvement in ROE signals management is generating higher returns from shareholder capital, reflecting operating efficiency gains. If sustained, higher ROE supports compounding value, funds strategic initiatives internally, and enhances shareholder capital productivity over quarters.

Negative Factors

Inconsistent Profitability and Margin Pressure

Inconsistent and generally low margins, alongside a declining gross profit margin, mean revenue growth may not reliably translate into durable earnings. Persistent margin pressure from cost or pricing dynamics can erode long-term profitability and reduce cash available for reinvestment.

Weak Cash Conversion

A low operating-cash-to-net-income ratio suggests earnings quality issues where reported profits do not convert to cash. Over the medium term, weak cash conversion constrains working capital, limits self-funded growth initiatives and may increase reliance on external financing.

Volatile Free Cash Flow

Significant recent declines and volatility in free cash flow reduce predictability of internal funding for capex and inventory. Even with high revenue growth, erratic FCF undermines budgeting, raises financing risk, and can impede consistent investment in sales channels over multiple quarters.

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

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East Buy Holding Limited Financial Statement Overview

Summary

Strong top-line growth (latest year revenue up 100.86%) and a low-leverage balance sheet support stability, but overall quality is held back by inconsistent profitability/margins and volatile cash flow with weak cash conversion (low operating cash flow to net income).

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	May 2024	May 2023	May 2022	May 2021	May 2020
Income Statement
Total Revenue	4.50B	4.39B	6.53B	3.88B	600.53M	623.63M
Gross Profit	1.50B	1.40B	1.69B	1.48B	390.85M	435.03M
EBITDA	427.74M	112.48M	498.83M	975.29M	-125.34M	-102.76M
Net Income	339.83M	5.74M	1.72B	971.29M	-533.95M	-1.66B
Balance Sheet
Total Assets	6.41B	6.09B	6.54B	3.85B	2.06B	3.29B
Cash, Cash Equivalents and Short-Term Investments	5.43B	5.02B	4.59B	3.00B	1.59B	2.46B
Total Debt	34.34M	50.78M	94.81M	51.00M	48.77M	313.83M
Total Liabilities	992.52M	974.55M	1.57B	1.05B	418.38M	1.28B
Stockholders Equity	5.42B	5.12B	4.97B	2.80B	1.64B	2.01B
Cash Flow
Free Cash Flow	538.85M	63.46M	820.23M	1.25B	-938.40M	-1.03B
Operating Cash Flow	541.81M	89.29M	856.09M	1.26B	-918.07M	-913.67M
Investing Cash Flow	-1.04B	195.50M	202.75M	-737.55M	-26.37M	659.11M
Financing Cash Flow	1.08M	-53.12M	-14.77M	55.64M	-45.40M	1.41B

East Buy Holding Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 25.24
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 25.24 is below the 20-day moving average (MA) of 26.18, above the 50-day MA of 24.49, and above the 200-day MA of 21.63, indicating a neutral trend. The MACD of -0.09 indicates Positive momentum. The RSI at 48.05 is Neutral, neither overbought nor oversold. The STOCH value of 68.32 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
9901	73 Outperform	HK$69.14B	46.85	9.39%	1.07%	7.07%	-2.52%
0667	67 Neutral	HK$12.48B	8.42	11.19%	3.15%	7.48%	87.88%
0839	65 Neutral	HK$7.92B	7.37	5.88%	9.49%	11.85%	100.46%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
1797	62 Neutral	HK$26.63B	20.68	6.45%	―	-33.04%	-98.87%
2469	54 Neutral	HK$2.72B	5.59	14.10%	―	-10.99%	-50.16%

East Buy Holding Limited Corporate Events

East Buy Swings Back to Profit as Livestreaming and Private-Label Strategy Drive Interim Results

East Buy Holding Limited reported a solid return to profitability for the six months ended 30 November 2025, with revenue rising 5.7% year-on-year to RMB2.31 billion and gross profit climbing 14.5% to RMB841.6 million. The group swung from a loss before tax of RMB72.5 million a year earlier to a profit before tax of RMB308.5 million, while profit for the period reached RMB239.0 million versus a loss of RMB96.5 million, reflecting improved operating efficiency and stronger margins. Earnings per share turned positive at RMB0.23 basic, and on a non-IFRS basis adjusted profit rose sharply to RMB257.6 million and adjusted EBITDA to RMB315.2 million, underscoring a marked recovery in core profitability. Management highlighted the continued execution of its customer-centric strategy, expansion of its private-label product portfolio, and multi-platform livestreaming presence, which together are reinforcing East Buy’s position in China’s livestreaming e-commerce segment and supporting longer-term growth prospects for both the company and its upstream agricultural partners.

The most recent analyst rating on (HK:1797) stock is a Hold with a HK$23.00 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 Schedules Board Meeting to Review Interim Results and Consider Dividend

East Buy Holding Limited has scheduled a board meeting for 28 January 2026 to review and approve the interim results of the company and its subsidiaries for the six months ended 30 November 2025. The board will also consider the possible declaration and payment of an interim dividend, a decision that could directly affect shareholder returns and signal management’s confidence in the company’s financial performance.

The most recent analyst rating on (HK:1797) stock is a Hold with a HK$20.00 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 Records RMB10 Million Connected Lease for Beijing Commercial Premises

East Buy Holding Limited has entered into a connected lease transaction under which subsidiary Metropolis Holding will lease a 439-square-metre commercial unit in Beijing’s Euro Plaza to tenant Dong Xiaozhen for 60 months starting 1 January 2026, at a monthly rent of about RMB220,323. The arrangement will be recognised as right-of-use assets of roughly RMB10 million in the group’s accounts under IFRS 16 and will be funded mainly from internal resources. As Metropolis Holding is an indirect connected party through ownership by executive director Mr. Yu, the deal falls under Hong Kong’s connected transaction rules, requiring reporting and announcement but is exempt from independent shareholders’ approval because the transaction size is between 0.1% and 5% of the applicable percentage ratios.

The most recent analyst rating on (HK:1797) stock is a Hold with a HK$20.00 price target. To see the full list of analyst forecasts on East Buy Holding Limited stock, see the HK:1797 Stock Forecast page.