RAINBOW(002419) 申万宏源·2024-11-04 07:41Investment Rating - The report maintains a "Buy" rating for Tianhong Co., Ltd. (002419) [4][5][6] Core Views - The company reported a decline in revenue and net profit for the first three quarters of 2024, with revenue of 9.05 billion yuan, down 2.22% year-on-year, and a net profit of 118 million yuan, down 47.32% year-on-year [4][5] - Despite the pressure on profitability, the company is focusing on transforming its offline business and upgrading its supermarket stores, which has shown positive results in customer traffic and sales [5] - The company is accelerating its digital transformation by developing an AI model to enhance retail operations and customer experience [5] Summary by Sections Market Data - Closing price: 5.06 yuan - One-year high/low: 6.10/3.93 yuan - Price-to-book ratio: 1.4 - Dividend yield: 3.16% - Circulating A-share market value: 5,914 million yuan [1] Financial Data - Total revenue for 2024E is projected at 12.25 billion yuan, with a year-on-year growth rate of 1.3% [6] - Net profit for 2024E is expected to be 173 million yuan, a decrease of 23.5% year-on-year [6] - Gross margin for 2024E is projected at 37.2% [6] Performance Comparison - The company's stock price has shown a decline compared to the market index over the past year [3] Operational Highlights - The company has upgraded its store formats, resulting in an 8.8% increase in customer traffic and improved rental rates for shopping centers and department stores [5] - The gross margin has faced pressure, but effective cost control measures have been implemented, leading to a decrease in expense ratios [5] - The launch of the SP@CE3.0 store format has resulted in significant sales growth, with one store achieving over 1 million yuan in sales on its opening day [5]