According to the app of WiseNews Finance, East Buy (01797) fell more than 4% in the morning session, and as of press time, it fell 4.17%, at HKD 14.42, with a turnover of HKD 99.5866 million.
According to bocom intl's research report, the company's profit margin may hit bottom in the third quarter of the 2024 fiscal year (as of February 29, 2024). The third quarter of the 2024 fiscal year is the stage of the company's strategic adjustment, increasing the promotion of self-operated products, leading to a decline in the gross margin of self-operated products. After the Spring Festival, the operation gradually returned to its normal pace, the special live broadcast made more progress, and it is expected that the company's profitability in the fourth quarter will improve compared to the third quarter. However, considering that the self-operated products still aim for scale growth in the short term, there are still uncertainties in the investment intensity.
The bank pointed out that the company's main account traffic growth faces challenges, and the GMV scale is partially diverted by shelves and other channels. After the "Little Composition" incident, the main account of East Buy experienced a brief decline in the number of fans, which has now stabilized at a level of thirty million. However, it does reflect the situation of pressure on the growth of newly added traffic, and the company's long-term development faces challenges in expanding the circle.