Goldman Sachs has released a research report stating that EAST BUY (01797) valuation remains high relative to its growth prospects and industry peers, maintaining a "Sell" rating while raising the target price from HK$12.4 to HK$13.6.

Goldman Sachs noted that EAST BUY continues to benefit from brand support from its parent company, New Oriental (09901). After the departure of its well-known anchor, the company has demonstrated stable operational performance, with recovery in gross merchandise value (GMV), revenue, and profitability, and is steadily expanding its self-brand product portfolio.

In response to EAST BUY's profit warning issued on July 23 and New Oriental's fiscal fourth-quarter 2026 results, Goldman Sachs has adjusted its forecasts for EAST BUY. The investment bank raised its revenue forecasts for fiscal years 2026, 2027, and 2028 by 4%, 15%, and 16%, respectively, reflecting higher GMV, particularly from new Douyin livestream accounts and other e-commerce channels. However, due to increased sales and marketing expenses, net profit forecasts were lowered by 11%, 7%, and 4% for the same periods. Adjusted net profit forecasts were revised down by 8% for 2026, and up by 2% and 4% for 2027 and 2028, respectively, to account for higher share-based compensation expenses.