RAINBOW(SZ:002419) EBSCN·2024-03-14 16:00Investment Rating - The report maintains a "Buy" rating for the company [19][20]. Core Insights - In 2023, the company achieved operating revenue of 12.086 billion yuan, a year-on-year decrease of 0.32%, while the net profit attributable to the parent company was 227 million yuan, representing a year-on-year increase of 88.75% [1][16]. - The company has been actively adjusting its offline stores and rapidly developing its online business, with digital membership exceeding 47 million and online sales reaching a GMV of 5.44 billion yuan in 2023 [3][18]. - The company’s gross margin increased by 1.46 percentage points to 38.26% in 2023, with a notable improvement in the fourth quarter [2][17]. Summary by Sections Financial Performance - The company reported a net profit of 227 million yuan in 2023, with a comprehensive diluted EPS of 0.19 yuan, up 88.75% year-on-year [1][4]. - The operating revenue for Q4 2023 was 2.835 billion yuan, a decrease of 2.34% year-on-year, with a net profit of 2 million yuan [16]. Cost Management - The comprehensive gross margin for 2023 was 38.26%, up 1.46 percentage points from the previous year, while the expense ratio decreased by 0.74 percentage points to 37.04% [2][17]. Store and Online Business Development - The company added one shopping center and reduced three department stores and three supermarkets in 2023, with a total of 41 shopping centers, 59 department stores, and 116 supermarkets by year-end [3]. - The online business saw significant growth, with a GMV of 5.44 billion yuan and a 10% increase in member sales [3][18]. Future Earnings Forecast - The report maintains EPS forecasts of 0.21 yuan for 2024, 0.23 yuan for 2025, and introduces a new forecast of 0.25 yuan for 2026 [3].