Stock Track | EAST BUY Soars 12.92% as "Sam's Club Model" and Operational Improvements Fuel Investor Optimism

Stock Track
Aug 15

EAST BUY (01797) saw its stock price surge by 12.92% in early trading on Friday, continuing its remarkable upward trajectory. The company's shares have skyrocketed more than 230% since early July, with today's rally pushing the stock to HK$39.42 and generating a substantial trading volume of HK$1.114 billion.

The surge comes ahead of EAST BUY's full-year results announcement scheduled for August 22. Recent analysis based on New Oriental's Q4 FY25 results suggests that EAST BUY's Q4 revenue, while down 30% year-over-year to approximately $150 million, shows a narrowing decline. More importantly, the company's non-GAAP operating profit reached around RMB 79 million, corresponding to an improved operating margin of about 7%.

Investors are particularly excited about EAST BUY's transformation from an anchor-driven to a product-driven business model, which has contributed to improved profitability. Additionally, the company's "Sam's Club model" has garnered significant attention, with analysts highlighting its potential advantages in the current consumer market characterized by diversified supply and rational demand. EAST BUY's recent marginal operational improvements and successful expansion into new product categories further bolster investor confidence in the company's growth prospects.

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