Stock Track | EAST BUY Plummets 9.08% After Dramatic Intraday Reversal, Erasing Earlier 20% Gain

Stock Track
Aug 19

EAST BUY (01797.HK) experienced a rollercoaster trading session on Tuesday, plummeting 9.08% by the afternoon after an impressive surge of over 20% earlier in the day. The stock's dramatic reversal caught investors off guard, as the initial rally gave way to a sharp sell-off in the latter part of the trading session.

The volatile movement comes just days before EAST BUY is set to release its annual results for the fiscal year ending May 31, 2025, scheduled for Friday, August 22. Market participants are closely watching the upcoming earnings report, which could provide crucial insights into the company's financial health and future prospects.

Analysts have weighed in on EAST BUY's recent performance and business model. Huaxi Securities estimates that the company's fourth-quarter revenue was $150 million, representing a year-on-year decline of approximately 30%, though the rate of decline has narrowed quarter-on-quarter. The firm also projects a non-GAAP operating profit of around RMB 79 million, corresponding to an operating profit margin of about 7%, showing improvement from the previous quarter. Meanwhile, Guosen Securities highlighted EAST BUY's "Sam's Club Paradigm" and noted the company's recent operational improvements, including successful expansion into new categories and enhanced growth quality in its self-operated business.

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