RAINBOW(SZ:002419) EBSCN·2024-04-28 01:32Investment Rating - The report maintains a "Buy" rating for the company [2][17][25] Core Views - The company experienced a 1.30% year-on-year decrease in revenue for Q1 2024, with a net profit attributable to shareholders declining by 28.34% [1][15] - The overall gross margin for Q1 2024 was 36.95%, down by 0.11 percentage points compared to the previous year [1][31] - The company has actively engaged in various marketing activities and made progress in its digital industrialization business, with sales reaching 9.88 billion yuan, a 1.1% increase year-on-year [2][28] Summary by Sections Financial Performance - Q1 2024 revenue was 3.34 billion yuan, a decrease of 1.30% year-on-year, while the net profit was 149 million yuan, translating to an EPS of 0.13 yuan, down 28.34% year-on-year [15][30] - The company’s gross margin decreased by 0.11 percentage points to 36.95%, and the expense ratio decreased by 0.87 percentage points to 31.09% [1][16] Business Operations - The company has been adapting to new consumer demands and trends, improving operational capabilities, particularly in shopping centers, where comparable store profit increased by 120% year-on-year [2][28] - The supermarket business is undergoing internal reforms, optimizing the supply chain and enhancing operational precision, with gradual improvements being observed [2][28] Future Outlook - The company has adjusted its earnings per share (EPS) forecasts for 2024, 2025, and 2026 downwards by 25%, 25%, and 27% respectively, now projecting EPS of 0.16, 0.17, and 0.18 yuan [2][17] - The digital industrialization business is progressing well, with new contracts signed and several patents filed [2][28]