CMB International Securities has released a research report indicating that EAST BUY (01797) has issued a positive profit alert for its fiscal year 2026. The company expects second-half revenue growth to accelerate to over 50%, with net profit increasing nearly 200% year-on-year, validating the effectiveness of its transformation. The brokerage has upgraded the stock to an "Overweight" rating with a target price of HK$27, expressing optimism about EAST BUY's continued deepening of its private-label strategy and expansion into offline retail.

The report notes that the company's total revenue for fiscal year 2026 is projected at RMB 5.6 to 5.8 billion, representing a 27.3% to 31.8% increase year-on-year. Net profit is estimated at RMB 520 to 550 million, a significant surge of 85.7 to 90.7 times compared to the RMB 60 million reported in fiscal year 2025. The acceleration is particularly pronounced in the second half, with revenue expected to reach RMB 3.3 to 3.5 billion, up 50% to 59.1% year-on-year, and net profit of RMB 281 to 311 million, a 172.8% to 201.9% year-on-year increase. The second-half net profit margin is forecasted at approximately 8% to 9.4%, slightly below the first-half margin of 10.3%, which may reflect initial costs related to the expansion of the livestreaming matrix, investments in private-label products, and the opening of physical stores.

Continued Deepening of Private-Label and Multi-Channel Strategy

Furthermore, the report points out that the collective departure of key anchors in April did not significantly drag down the second-half fiscal year performance. Revenue growth has steadily accelerated to over 50%, validating that the growth engine has shifted from a "super anchor traffic" model to a "private-label products plus multi-channel matrix" system. With this transition, EAST BUY has now fully moved past the risk of losing its top livestreaming talent.