EAST BUY (01797) rebounded nearly 4% in the morning session, after a cumulative decline of nearly 13% over the previous two trading days. As of the time of writing, the stock price has risen by 2.55%, currently reported at 16.08 Hong Kong dollars, with a transaction amount of 82.8761 million Hong Kong dollars.
Citi released a Research Report stating that EAST BUY is in a favorable position to fully capture the surge in demand for seasonal gifts during the Spring Festival, due to factors such as the company's potential to leverage the power of the WeChat social commerce platform; having a first-mover advantage with new gifting features within WeChat's large ecosystem; and WeChat's friendly measure of lowering the technology service fee threshold from 5% to 2%. However, with the expansion of the merchant base and increasing competition, post-holiday sentiments may return to normal.
