Daiwa: EAST BUY has emerged from operational difficulties, target price raised to 29 yuan

Daiwa published a research report stating that EAST BUY (01797.HK) turned profitable in the interim of the 2026 fiscal year as of the end of November last year, recording an adjusted net profit of RMB 257 million, mainly driven by economies of scale and growth in high-margin product sales, which improved the pace of expansion in its own brand gross margin and streamlined cost structure.

Daiwa indicated that its outlook on EAST BUY has turned more positive, believing that the company's operational situation has emerged from difficulties, with profitability exceeding expectations. It significantly raised the target price from HKD 13.5 to HKD 29 and increased the profit forecast for the fiscal years 2026 to 2027 by 42% to 97%, reiterating the "outperform" rating