Red Star Macalline Group Corporation Ltd Class H (1528) AI Stock Analysis

• Market Cap: HK$11.32B
• Dividend Yield: N/A
• Average Volume (3M): 7.07M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.93
• Revenue Growth: -25.49%
• EPS Growth: -19.64%
• Country: HK
• Employees: 11,553
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): -0.31
• Shares Outstanding: 741,285,640
• 10 Day Avg. Volume: 6,844,986
• 30 Day Avg. Volume: 7,065,394
• PEG Ratio: -0.05
• Price to Book (P/B): 0.15
• Price to Sales (P/S): 0.93
• P/FCF Ratio: 49.71
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.05
• Revenue Forecast (FY): HK$8.56B

• Rating: 46 Neutral
• Price Target: HK$1.00 ▼(-19.35% Downside)
• Action: Reiterated Date: 01/14/26
• Date: Action: Reiterated 01/14/26

The score is held down primarily by deteriorating financial performance, with sustained losses and shrinking revenue outweighing the benefit of improving positive cash flow and manageable leverage. Technicals are also weak with the stock below key longer-term moving averages and a negative MACD. Valuation is a further headwind because losses result in a negative P/E and no dividend yield data provides offsetting support.

Positive Factors

Improving operating and free cash flow

Sustained positive operating and free cash flow provides durable liquidity to fund working capital, mall operations and digital investments without relying solely on equity raises. This cash generation cushions the business through cyclical retail downturns and supports gradual deleveraging or targeted reinvestment.

Manageable leverage (debt-to-equity ~0.6)

A moderate debt-to-equity ratio and a sizable equity base give the company structural financial flexibility versus more highly leveraged peers. This allows continued investment in stores, malls and e-commerce, and provides buffer to absorb near-term losses while pursuing operational recovery initiatives.

Diversified revenue model: retail, leasing, e-commerce

Multiple revenue streams—brick-and-mortar sales, recurring mall leasing income, brand partnerships and e-commerce—create structural resilience. Recurring leasing revenue can partially offset retail volatility, while e-commerce expansion broadens customer reach and supports long-term revenue recovery.

Negative Factors

Multi-year revenue decline and swing to losses

Prolonged revenue contraction and the transition to sustained net losses weaken scale economics and margin leverage. If the top-line trend persists, it risks eroding mall traffic, supplier partnerships and pricing power, forcing cost cuts or asset sales that could impair long-term competitiveness.

Weak earnings quality with non-operating/impairment hits

Large non-operating losses and impairment-style charges undermine sustainable profitability metrics and distort performance signals. Persistent one-off or non-cash losses can reduce retained capital, hamper return-on-equity recovery, and complicate management’s ability to plan stable long-term investments.

Operating cash flow small versus debt (low coverage)

Limited cash flow coverage relative to debt constrains the company's ability to deleverage and invest concurrently. Over the medium term this raises refinancing and liquidity risk, may force prioritization of debt service over growth capex, and reduces headroom to absorb renewed market weakness.

Red Star Macalline Group Corporation Ltd Class H Business Overview & Revenue Model

Company Description

Red Star Macalline Group Corporation Ltd. operates and manages home improvement and furnishing shopping malls in Mainland China. The company operates through five segments: Owned/Leased Portfolio Shopping Malls; Managed Shopping Malls; Construction and Design; Related Home Decoration and Sales of Merchandise; and Others. As of December 31, 2021, it operated 95 portfolio shopping malls and 278 managed shopping malls; 10 home furnishing shopping malls through strategic cooperation; and 485 home improvement material stores/industry streets. The company also engages in the leasing of floor areas to the tenants; and retail sale of home furnishing merchandise, as well as provision of related decorating services. In addition, it offers home decoration, design, and internet retail. Further, the company provides site leasing management, warehouse logistics, industrial investment, exhibition, advertisement, accounts receivable financing, and enterprise management and consultancy services. Additionally, it offers network technology, loan, import and export, engineering design, supply chain and brand management, cultural and artistic exchange, and information science and technology development services, as well as engages in e-commerce activities. The company was formerly known as Shanghai Red Star Macalline Home Living and Decorating Company Limited and changed its name to Red Star Macalline Group Corporation Ltd. in 2011. The company was founded in 1992 and is headquartered in Shanghai, the People's Republic of China. Red Star Macalline Group Corporation Ltd. is a subsidiary of Red Star Macalline Holding Group Company Limited.

How the Company Makes Money

Red Star Macalline generates revenue through multiple streams, primarily from the sale of furniture and home decor products in its retail stores and online platforms. The company operates a large number of shopping malls and stores across China, which serve as key revenue-generating locations. Additionally, Red Star Macalline earns income from leasing space to third-party retailers within its malls. The company also benefits from partnerships with various brands and suppliers, allowing it to offer a diverse range of products while maintaining a competitive edge in pricing. Furthermore, the company invests in e-commerce initiatives, which have become increasingly important in driving sales and reaching a broader customer base.

Red Star Macalline Group Corporation Ltd Class H Financial Statement Overview

Summary

Income statement weakness is the main drag: multi-year revenue declines and a shift from profits (2020–2022) to sizable losses (2023–TTM) indicate deteriorating earnings quality. The balance sheet is moderately levered with improved debt-to-equity (~0.6 TTM), but negative returns since 2023 elevate risk if losses persist. Cash flow is a relative positive with positive operating/free cash flow in TTM and FCF rebounding, though coverage versus debt remains limited.

Income Statement

The earnings profile has weakened materially. Revenue has been shrinking for multiple years and fell sharply in TTM (Trailing-Twelve-Months). The company moved from positive profitability in 2020–2022 to sizable losses in 2023–2024, with an even larger net loss in TTM. While gross profit margin is very high in TTM, the business is not converting that into bottom-line results, indicating heavy non-operating costs and/or impairment-type hits and poor earnings quality. Key positive: margins were solid historically and the cost structure appears capable of producing profits in better conditions, but the current loss-making trend dominates.

Balance Sheet

The balance sheet looks moderately levered but not extreme for the sector. Debt-to-equity has improved versus 2020–2021 and sits around ~0.6 in TTM, supported by a sizable equity base. Total assets remain large and relatively stable. The main weakness is persistent negative returns to shareholders since 2023, reflecting that capital is not currently generating profits, which raises risk if losses continue. Overall, leverage is manageable, but profitability stress is the key balance-sheet concern.

Cash Flow

Cash generation is a relative bright spot recently. Operating cash flow and free cash flow are positive in TTM, and free cash flow rebounded strongly versus the prior year. Cash flow also meaningfully exceeds reported net income (given the net loss), suggesting non-cash charges are a major driver of accounting losses. The weakness is that operating cash flow is still small relative to the debt load (low coverage), implying limited near-term de-leveraging capacity without a profit recovery. Cash flow is improving, but not yet strong enough to comfortably offset earnings volatility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.82B	7.82B	11.51B	14.14B	15.51B	14.24B
Gross Profit	6.08B	4.99B	7.03B	8.84B	15.51B	8.76B
EBITDA	1.08B	-1.55B	433.16M	4.47B	5.79B	6.12B
Net Income	-4.24B	-2.98B	-2.41B	678.57M	1.96B	1.73B
Balance Sheet
Total Assets	113.39B	118.64B	124.19B	129.48B	135.19B	131.55B
Cash, Cash Equivalents and Short-Term Investments	3.74B	3.30B	3.10B	3.55B	7.14B	6.76B
Total Debt	26.82B	39.71B	38.23B	38.23B	44.51B	49.78B
Total Liabilities	67.39B	67.33B	69.04B	71.48B	77.66B	80.45B
Stockholders Equity	43.19B	48.20B	49.62B	54.45B	53.98B	48.62B
Cash Flow
Free Cash Flow	1.07B	146.45M	2.32B	3.64B	2.99B	1.26B
Operating Cash Flow	1.36B	216.37M	2.36B	3.88B	5.38B	4.16B
Investing Cash Flow	-94.80M	631.16M	701.36M	687.70M	-126.81M	-4.85B
Financing Cash Flow	-1.59B	-242.64M	-3.17B	-8.06B	-5.05B	-181.90M

Red Star Macalline Group Corporation Ltd Class H Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.24
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1528, the sentiment is Neutral. The current price of 1.24 is below the 20-day moving average (MA) of 1.37, below the 50-day MA of 1.31, and below the 200-day MA of 1.41, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 48.77 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1528.

Red Star Macalline Group Corporation Ltd Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6049	78 Outperform	HK$17.72B	4.67	15.52%	4.43%	6.54%	3.26%
3316	74 Outperform	HK$6.06B	5.00	38.46%	6.94%	21.11%	9.61%
2869	70 Outperform	HK$13.08B	5.12	11.53%	2.78%	-0.95%	14.89%
6098	66 Neutral	HK$20.33B	5.03	3.73%	4.94%	7.23%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
6666	51 Neutral	HK$12.22B	4.44	185.17%	―	4.74%	-21.33%
1528	46 Neutral	HK$11.32B	-1.13	-9.38%	―	-25.49%	-19.64%

Red Star Macalline Group Corporation Ltd Class H Corporate Events

Red Star Macalline Signs New Contract Management Deal With Yangzhou Affiliate

Red Star Macalline Group Corporation Ltd. has approved a supplemental contract management agreement under which it will provide contract management services to Yangzhou RSHFP from 1 January 2026 to 31 December 2028 for a commercial property with a gross floor area of 89,656.73 square metres in Yangzhou, Jiangsu Province. As Yangzhou RSHFP is associated with connected persons Mr. Che and Mr. Xu, the arrangement constitutes continuing connected transactions under Hong Kong Listing Rules, but the aggregated annual caps for these contract management transactions remain below the 0.1% threshold, meaning they are fully exempt from independent shareholders’ approval, annual review and detailed disclosure requirements, with the interested directors abstaining from the board vote.

The most recent analyst rating on (HK:1528) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Red Star Macalline Group Corporation Ltd Class H stock, see the HK:1528 Stock Forecast page.

Red Star Macalline Calls January 2026 EGM to Vote on Capital Reduction and Governance Changes

Red Star Macalline Group Corporation Ltd. has called its first extraordinary general meeting of 2026 for 16 January in Shanghai, where shareholders will vote on a series of operational and capital-related resolutions. Items on the agenda include approving estimated provisions of financial assistance, setting the expected scale of related-party transactions with financial institutions for 2026, authorizing the cancellation of repurchased A shares and the corresponding reduction of registered capital, and amending the company’s Articles of Association, changes that together could affect the group’s capital structure, governance framework and its future financial dealings with related parties and lenders. The company also outlined the technical arrangements for H-share holders’ eligibility, proxy voting and poll procedures, underlining regulatory compliance and shareholder participation in these key corporate actions.

The most recent analyst rating on (HK:1528) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Red Star Macalline Group Corporation Ltd Class H stock, see the HK:1528 Stock Forecast page.

Red Star Macalline Plans RMB10 Million Financial Support for Managed Mall Partners in 2026

Red Star Macalline Group Corporation Ltd. has announced plans for its board to authorize the provision of up to RMB10 million in new financial assistance in 2026 to partners of its managed shopping malls, mainly by extending loans to help them meet short-term capital needs such as prepayment of rents and deposits for tenants. The proposed assistance, which will be subject to shareholder approval at an extraordinary general meeting due to regulatory prudence and potential high gearing ratios of some partners, is designed not to affect the company’s normal operations and will be granted only to non-related partners that pass strict internal qualification checks, signaling a targeted effort to support mall partners’ liquidity and stabilize the company’s managed mall ecosystem.

The most recent analyst rating on (HK:1528) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Red Star Macalline Group Corporation Ltd Class H stock, see the HK:1528 Stock Forecast page.

Red Star Macalline Adjusts Shopping Mall Operations in 2025

Red Star Macalline Group Corporation Ltd. announced its operating statistics for the first three quarters of 2025, revealing significant changes in its shopping mall operations. The company closed four Portfolio Shopping Malls and 29 Managed Shopping Malls, while opening one new Managed Shopping Mall. Additionally, several malls were transferred between Portfolio and Managed categories, reflecting strategic adjustments in its management approach. These changes highlight the company’s efforts to optimize its mall operations and adapt to market demands, potentially impacting its market positioning and stakeholder interests.

Red Star Macalline Reports Significant Revenue Decline and Operating Losses

Red Star Macalline Group Corporation Ltd reported its unaudited financial results for the nine months ending September 30, 2025, revealing a significant decline in revenue to RMB 4.97 billion from RMB 6.11 billion in the previous year. The company faced substantial operating losses of RMB 3.34 billion, primarily due to decreased revenue and increased financial expenses, impacting its profitability and market positioning.

Red Star Macalline Announces Upcoming Board Meeting for Q3 Results

Red Star Macalline Group Corporation Ltd. has announced a board meeting scheduled for October 30, 2025, to review and approve the company’s third-quarter results for the period ending September 30, 2025. This meeting is crucial for stakeholders as it will provide insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and investor confidence.