全渠道多业态协同发力，优化供应链提升经营效率

Investment Rating - The report maintains a "Buy" rating for Tianhong Co., Ltd. [9] Core Views - The company reported Q1 2024 results that met expectations, with revenue of 3.34 billion yuan, a year-on-year decrease of 1.3%, and a net profit attributable to shareholders of 149 million yuan, down 28.34% year-on-year. Excluding one-time gains from the previous year, the net profit showed a growth of 3.47% year-on-year [9] - The company is optimizing its store network and upgrading its three main business formats, having closed four independent supermarkets and expanded into 34 cities across seven provinces, operating a total of 41 shopping centers, 59 department stores, and 112 supermarkets [9] - The multi-channel strategy is driving sales growth, with total sales reaching 9.88 billion yuan in Q1 2024, a year-on-year increase of 1.1%. The digital business is expanding rapidly, with significant contributions from marketing activities during key holidays [9] - The gross profit margin for Q1 2024 was 36.95%, with a slight decrease of 0.11 percentage points year-on-year. The company managed to reduce its expense ratio to 31.09%, down 0.87 percentage points year-on-year, indicating effective cost control [9] Financial Summary - For 2024, the company expects total revenue of 12.534 billion yuan, with a year-on-year growth rate of 3.7%. The net profit attributable to shareholders is projected to be 209 million yuan, reflecting a decrease of 8.0% year-on-year [10] - The earnings per share for 2024 is estimated at 0.18 yuan, with a projected price-to-earnings ratio of 28 times [10] - The company’s return on equity (ROE) is expected to be 4.9% in 2024, with a gross margin of 38.3% [10]