Company Performance: EAST BUY (01797.HK) reported a turnover increase of 5.7% year-on-year, reaching HK$2.312 billion for the interim results ending November 2025.

Profitability: The company returned to profitability with a net profit of HK$239 million, compared to a loss of HK$96.799 million in the same period last year.

Earnings Per Share: The earnings per share (EPS) for the period was HK$0.23.

Dividends: No dividend was declared for this interim period.

Market Performance: The HSI experienced a strong start, reaching a 4.5-year high of 27,981 before settling at 27,975, with a midday increase of 148 points or 0.5%. The HSCEI also rose by 43 points, while the HSTECH saw a slight decline.

Chinese Property Developers Rally: Several Chinese property developers surged in stock prices after being exempted from submitting monthly "Three Red Lines" reports, with notable increases of 26-34% for companies like CHINA AOYUAN and LOGAN GROUP.

Mixed Results in Other Sectors: While property managers and some tech stocks saw gains, companies like SANDS CHINA and GALAXY ENT experienced declines, with SANDS CHINA dropping 7.3% despite a rise in its adjusted property EBITDA.

Commodity and Tech Stock Movements: Gold and silver prices reached new highs, positively impacting ZIJIN MINING, while tech giants like TENCENT and BIDU-SW saw minor increases, contrasting with losses from BABA-W and BILIBILI-W.

Revenue and Profit Performance: NEW ORIENTAL-S reported a 15% revenue growth for the second fiscal quarter, surpassing expectations and guidance, leading to an increase in full fiscal year revenue guidance to US$5.3-5.5 billion.

Future Projections: The company has set a revenue growth guidance of 11-14% for the third fiscal quarter, with analysts raising their non-GAAP EPS forecasts for FY2026/2027 by 6% and 7%, respectively.

Market Reaction: Following the positive results and guidance upgrades, BofA Securities raised the target price for NEW ORIENTAL-S' US stock and H-shares, while maintaining a 'Buy' rating, indicating improved investor confidence.

Key Business Drivers: The growth is primarily driven by the K12 business and a reduction in the decline of the overseas test preparation sector, contributing to the overall positive outlook for the company.

Market Overview: The HSI opened 199 points lower at 27,627, with the HSCEI and HSTECH also experiencing declines of 60 points and 46 points, respectively.

Sands China Ltd Performance: Sands China Ltd saw a significant drop of 7.43% at open, despite a 16.4% YoY increase in net revenue for Q4 2025, as its adjusted property EBITDA fell short of forecasts.

Tech Stocks Movement: Major tech stocks like Tencent and Alibaba opened down by 1-1.4%, while Kuaishou saw a slight increase of 2.61%.

Gold and Mining Stocks: Gold and silver prices surged, leading to mixed performances among mining stocks, with some like SD Gold and Zhaojin Mining opening higher, while others like Chinagoldintl experienced a decline.

Market Overview: The HSI closed down 39 points (0.2%) at 26,447, while the HSCEI fell 24 points (0.3%) to 9,070. The HSTECH saw a slight increase of 8 points (0.15%) to 5,691, with a total half-day turnover of HKD127.653 billion.

AI-Related Stocks Performance: Stocks like GDS-SW and UNISOUND experienced declines of 3.2% and 5.2%, respectively, while INSILICO and MINIMAX-WP surged by 5.5% and 6.6%.

Chip Sector Movements: SMIC, ASMPT, and HUA HONG SEMI saw gains of 3-4%, while INNOSCIENCE and BIREN TECH faced declines of 5.6% and 3.6%.

Tech Stocks Activity: BIDU-SW rose by 3.3% following a target price increase from Morgan Stanley and Citi, while other notable movements included a decline in LENOVO GROUP and a slight increase in KUAISHOU-W.