RAINBOW(SZ:002419) Changjiang Securities·2025-05-20 05:15Investment Rating - The investment rating for the company is "Buy" and is maintained [9]. Core Insights - The company reported a revenue of 3.27 billion yuan in Q1 2025, a year-on-year decline of 2.2%, while the net profit attributable to the parent company was 150 million yuan, reflecting a year-on-year increase of 1.2%. The net profit after deducting non-recurring items was 130 million yuan, showing a year-on-year growth of 6.2% [2][6]. Summary by Sections Financial Performance - In Q1 2025, the company experienced a slight decline in revenue despite a 13.8% increase in customer traffic. The sales revenue reached 10.06 billion yuan, up 1.8% year-on-year. However, the revenue from self-operated comparable stores fell by 2.7% [12]. - The company operates 46 shopping centers, 59 department stores, and 108 supermarkets, with a net change of 1, 0, and -2 stores respectively. The overall store layout remains stable [12]. - The gross profit margin for Q1 was 36.2%, a decrease of 0.7 percentage points year-on-year, while the supermarket gross margin increased by 0.7 percentage points to 23.5%, contributing to a 20% year-on-year increase in supermarket profit [12]. Business Transformation - The company is actively pursuing digital transformation and enhancing operational efficiency through AI and retail technology upgrades. The revenue from its digital operations grew by 22.9% in 2024 and 30.5% in Q1 2025 [12]. - The company is focusing on optimizing its business structure and accelerating the transformation of its retail operations, which is expected to improve profitability in the medium to long term [12]. Earnings Forecast - The earnings per share (EPS) is projected to reach 0.11 yuan, 0.15 yuan, and 0.19 yuan for the years 2025, 2026, and 2027 respectively, indicating potential profit elasticity as new business formats mature [12].