EAST BUY (01797) surged more than 4% again, following a substantial gain of over 14% yesterday. At the time of writing, the stock was up 4.2%, trading at HK$26.3, with a turnover of HK$362 million.

The catalyst for the movement was the company's recent release of its financial results for the six months ended November 30, 2025. The group reported total revenue of RMB 2.312 billion, a 5.7% increase year-over-year. Profit attributable to the company's owners reached RMB 239 million, marking a significant turnaround from a loss in the same period last year.

Gross profit for the period amounted to RMB 841.6 million, climbing 14.5% year-over-year, which outpaced the revenue growth rate. The gross profit margin improved from 33.6% to 36.4%.

Citi issued a research report assigning EAST BUY a target price of HK$33 with a "Buy" rating. The report noted that while the Gross Merchandise Value (GMV) declined by 14.6% to RMB 4.1 billion due to a business spin-off, core revenue—excluding the impact of the "Yu Hui Tong Xing" unit—grew 17% to RMB 2.31 billion, supported by an expanded product mix and strong performance of its dedicated app.

Furthermore, through stringent operational controls, the company reduced its headcount by 26% and cut total staff compensation by 35%, further solidifying its profitability.