Summary of East Buy (1797.HK) Earnings Review Company Overview - Company: East Buy (1797.HK) - Industry: E-commerce, specifically focusing on private label and live streaming sales Key Financial Results - 2HFY25 Performance: - GMV: Rmb3.9 billion, down -55% YoY, 15% below expectations - 3P GMV: Decreased by -63% YoY, 40% below expectations due to high return rates - 1P GMV: Increased by 5% YoY, in line with expectations - Revenue: Rmb2.2 billion, down -46% YoY, in line with expectations - Adjusted Net Profit: Rmb198 million, down -34% YoY, but 90% above expectations - Gross Profit Margin (GPM): 5.1% NPM, improved due to lower operating expenses [1][2][17] - FY25 Full Year Results: - GMV: Rmb8.7 billion, down -39% YoY - Revenue: Rmb4.4 billion, down -33% YoY - Adjusted Net Income: Rmb173 million, with a 30% increase in net profit from continuing operations to Rmb135 million when excluding one-off impacts [2] Operational Highlights - Product Range Expansion: Increased from 488 to 732 SPUs, including nutritional foods, pet foods, and clothing - East Buy App: Contributed 16% of GMV and 25% of revenue in FY25, with paid members reaching 264k, a 16% increase from the previous period [3][19] - Multi-Platform Strategy: Over 70% of FY25 GMV came from Douyin, with plans to explore offline channels [20] Forecast Adjustments - FY26-27E GMV Forecasts: Reduced by 1-3%, but revenue forecasts raised by 0-10% due to higher contributions from 1P private-label products [4] - Adjusted Net Profit Margin: Revised up by +0.2pp/+1.0pp for FY26-27E [4] Valuation and Price Target - Current Price: HK$31.62 - Target Price: HK$9.00, based on a 15x CY26E target P/E - Valuation Concerns: Current valuation remains high at 3x P/GMV and 59x P/E for FY26E, compared to peers [16][34] Risks and Investment Thesis - Risks: GMV pressure, especially in the 3P live-streaming segment, and elevated valuation relative to growth prospects - Investment Rating: Sell due to unclear near-term growth outlook and high valuation [37] Additional Insights - Private Label Products: Accounted for 44% of GMV and 80% of revenue in FY25, with strong momentum in nutritious products [19] - East Buy App Growth: Expected to contribute 21% of GMV in FY26E, with a target of 560k paid members by 2027E [19][23] - DAUs and WAUs Stability: Despite stable user engagement metrics, the app's growth potential remains uncertain [30] This summary encapsulates the key financial metrics, operational highlights, and strategic outlook for East Buy, providing a comprehensive overview for potential investors and stakeholders.
东方甄选-业绩回顾_2025 财年上半年商品交易总额（GMV）未达预期，每股收益（EPS）因运营支出控制超预期；自营（1P）与第三方（3P）表现分化；因估值过高，建议卖出