EAST BUY (01797) continued its recent strong momentum, rising over 12% in early trading, with its stock price having soared more than 230% cumulatively since early July. As of press time, the stock was up 12.69% to HK$39.42, with trading volume reaching HK$1.114 billion.

On the news front, EAST BUY is scheduled to release its full-year results for the fiscal year ended May 31, 2025, on August 22 (next Friday). Previously, New Oriental released its Q4 FY25 results, and according to calculations by Huaxi Securities based on earnings announcements and conference calls, EAST BUY's Q4 FY25 revenue was approximately $150 million, down about 30% year-over-year, with the decline narrowing sequentially. Non-GAAP operating profit was approximately RMB 79 million, corresponding to an operating margin of about 7%, showing sequential improvement.

The firm noted that after experiencing the spin-off of Yuhui Travel and the departure of top anchor Dunton, the company's profitability has continued to improve. The firm suggested focusing on the company's transformation from anchor-driven to product-driven business model.

Additionally, Guosen Securities highlighted that EAST BUY's "Sam's Club model" has attracted attention. The current consumer market exhibits characteristics of diversified supply, transparent information, and rational demand. Against this backdrop, companies that can provide high-value products and possess mature membership systems (such as Sam's Club, Haidilao, EAST BUY, etc.) are expected to have more prominent advantages.

EAST BUY has recently shown marginal operational improvements, with successful expansion into new product categories and enhanced growth quality in its self-operated business. The firm believes that EAST BUY's marginal operational improvements serve as validation of the growth logic for this type of enterprise to a certain extent.