RAINBOW(SZ:002419) Changjiang Securities·2025-04-10 11:45Investment Rating - The investment rating for the company is "Buy" and is maintained [8] Core Views - The company reported a revenue of 11.79 billion yuan for 2024, a year-on-year decline of 2.5%, and a net profit attributable to shareholders of 76.72 million yuan, down 66.2% year-on-year. The net profit after deducting non-recurring items was 13.93 million yuan, a decrease of 89.1% year-on-year. In the fourth quarter alone, revenue was 2.74 billion yuan, down 3.4% year-on-year, with a net loss attributable to shareholders of 41.63 million yuan compared to a profit of 2.04 million yuan in the same period last year [2][6] Summary by Sections Financial Performance - The company experienced a total sales revenue of 35.8 billion yuan in 2024, reflecting a year-on-year decline of 1.8%. The breakdown of sales includes shopping centers at 15 billion yuan (up 5.5%), department stores at 11.4 billion yuan (down 9.9%), and supermarkets at 8.5 billion yuan (down 3.3%) [12] - The total income from shopping centers, department stores, and supermarkets was 2.2 billion yuan, 2 billion yuan, and 7.4 billion yuan respectively, with year-on-year changes of +7%, -10%, and -3% [12] - The overall gross profit margin for the year was 36.9%, a decrease of 1.4 percentage points year-on-year [12] Business Transformation - The company is undergoing a transformation in its business model, focusing on digitalization and optimizing its operational structure. This includes the introduction of high-end brands and the optimization of store spaces, which has shown positive effects on profitability [12] - The company aims to enhance its long-term operational efficiency and overall competitiveness through these transformations, despite facing short-term profit fluctuations [12] Future Outlook - The company is expected to see earnings per share (EPS) of 0.10, 0.13, and 0.18 yuan for the years 2025 to 2027, indicating potential for profit recovery as new business models mature [12]