RAINBOW(SZ:002419) Shenwan Hongyuan Securities·2025-10-29 14:49Investment Rating - The report maintains a "Buy" rating for Tianhong Co., Ltd. [2][7] Core Insights - The company reported lower-than-expected performance for Q3 2025, with total revenue of 2.869 billion yuan, a year-on-year decrease of 2.01%, and a net profit attributable to shareholders of -91.23 million yuan, a year-on-year decline of 156.90% [7] - The company is optimizing its store structure and accelerating the transformation of its retail business, with a focus on upgrading over 20 shopping centers and introducing various smart technology stores [7] - The company has achieved a gross margin of 35.52% in Q3 2025, a slight increase of 0.11 percentage points year-on-year, while the expense ratio rose to 38.10% [7] Financial Data and Profit Forecast - For 2025, the company expects total revenue of 11.927 billion yuan, with a year-on-year growth rate of 1.2% [6] - The net profit attributable to shareholders is forecasted to be 132 million yuan for 2025, representing a year-on-year increase of 72.4% [6] - The company’s gross margin is projected to be 37.0% in 2025, with a return on equity (ROE) of 3.2% [6]