Shares of EAST BUY (01797) climbed more than 6% in Hong Kong trading on Thursday, reaching HK$21.44 at the time of writing, with transaction volume hitting HK$324 million.

The surge comes after the company released its annual results for the fiscal year ended May 31, 2026. Revenue for the period rose 29.8% year-on-year to RMB 5.701 billion, and when excluding the impact of the "With Hui Tong Xing" livestream, the growth rate accelerates to 36.3%.

The company swung to an operating profit of RMB 663 million, a sharp turnaround from a loss of RMB 110 million in the prior fiscal year. Net profit for the year stood at RMB 544 million, a staggering 8,684.8% increase compared to RMB 6.19 million in FY2025. Adjusted net profit also jumped 262.2% to RMB 629 million from RMB 174 million in the previous year.

Private-label products have emerged as the core growth engine for EAST BUY. During the fiscal year, revenue from self-operated products totaled RMB 4.8 billion, up 37.4% year-on-year, now accounting for over 80% of total revenue. Gross merchandise value (GMV) from private-label goods reached RMB 5.4 billion, representing approximately 52.6% of overall GMV.

Analysts at Huatai Securities believe the company's Douyin sales data continues to show rapid growth, with strong demand for private-label products driving profit expansion. The company's market-expansion strategy is also gaining traction, maintaining high user engagement, while potential collaboration with New Oriental Group offline could deliver sustained growth in the coming fiscal years. The brokerage has raised its FY27-28 forecasts and initiated a new FY29 projection.