<News Alert> HKTV (1137 HK) – Shut down of EESE website; negative to stock sentiment
- I.T decided to shut down its e-commerce website EESE due to commercial consideration
- EESE is HKTV’s first e-commerce solution business client
- Limited financial impact, but negative to sentiment as investors may question on the sustainability of this new business model
What’s New
– News reported that Hong Kong fashion group I.T decided to close down its e-commerce website EESE on 12 July due to commercial consideration.
– EESE was launched in 4Q21, powered by Shoalter Technology. It is HKTV’s first e-commerce solution business client.
Our View:
– The news could be negative to HKTV’s stock sentiment.
– Financial impact should be minimal in the near term, given Shoalter business contributed less than 1% revenue in FY21.
– While the shutdown of EESE should be I.T’s business decision, the news could lead investors to question on the sustainability of this new business model.
– We will reach out to the company for more updates.
– We currently rate BUY on the counter with TP of HK$12.5.
