RAINBOW(002419) 光大证券·2024-11-06 01:57Investment Rating - The report maintains a "Buy" rating for the company [2][3][7] Core Views - The company is accelerating its store upgrade transformation, expecting a recovery in performance. The first SP@CE3.0 store opened in Shenzhen, achieving a sales increase of 196% year-on-year and 121% quarter-on-quarter on its opening day without promotional activities [2] - The company's performance has fallen below previous expectations, primarily due to pressure on its department store segment amid intense competition in the offline retail industry. As a result, profit forecasts for 2024, 2025, and 2026 have been revised down by 35%, 40%, and 42% to 121 million, 120 million, and 122 million yuan respectively [2][3] Financial Summary - For the first three quarters of 2024, the company reported a revenue of 9.047 billion yuan, a decrease of 2.22% year-on-year, and a net profit attributable to shareholders of 118 million yuan, down 47.32% year-on-year. The adjusted net profit was 62 million yuan, a decline of 48.66% year-on-year [3][4] - The comprehensive gross margin for the first three quarters of 2024 was 36.50%, a decrease of 0.99 percentage points year-on-year. The expense ratio for the same period was 34.52%, down 2.04 percentage points year-on-year [3][4] - The company’s revenue and net profit projections for 2024E, 2025E, and 2026E are 11.826 billion, 11.784 billion, and 11.886 billion yuan respectively, with net profits of 121 million, 120 million, and 122 million yuan [4][13]