Redsun Services Group Ltd (1971) AI Stock Analysis

• Market Cap: HK$151.48M
• Dividend Yield: N/A
• Average Volume (3M): 31.07K
• Price to Earnings (P/E): 10.4
• Beta (1Y): 0.73
• Revenue Growth: -5.39%
• EPS Growth: 8.07%
• Country: HK
• Employees: 2,878
• Sector: Real Estate
• Sector Strength: 56
• Industry: Real Estate - Services
• EPS (TTM): 0.04
• Shares Outstanding: 415,000,000
• 10 Day Avg. Volume: 65,400
• 30 Day Avg. Volume: 31,066
• PEG Ratio: 0.03
• Price to Book (P/B): 0.17
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.02
• 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

• Rating: 52 Neutral
• Price Target: HK$0.50 ▲(25.00%Upside)

Redsun Services Group Ltd's overall stock score is driven by mixed financial performance, with a strong balance sheet but weak cash flow and income statement. Technical analysis indicates bearish trends, and valuation metrics suggest moderate attractiveness. The absence of dividend yield and lack of positive earnings call or corporate events further weigh down the score.

Redsun Services Group Ltd Business Overview & Revenue Model

Company Description

Redsun Services Group Ltd (1971) is a comprehensive service provider primarily engaged in the property management industry. The company offers a wide range of services, including property management, value-added services to property developers, and community value-added services. Redsun Services Group Ltd operates predominantly in the Chinese market, focusing on residential properties while also catering to various commercial projects, enhancing living and working environments through its tailored solutions.

How the Company Makes Money

Redsun Services Group Ltd generates revenue primarily through property management fees collected from property owners and developers. This includes fees for basic property management services such as cleaning, security, landscaping, and maintenance. Additionally, the company earns income from providing value-added services to property developers, which can include consulting and pre-delivery services. Community value-added services, such as home decoration, maintenance, and community events, also contribute to Redsun's revenue streams. Strategic partnerships with real estate developers and a strong market presence in China are significant factors that bolster the company's earnings.

Redsun Services Group Ltd Financial Statement Overview

Summary

Redsun Services Group Ltd has a mixed financial performance. The income statement shows challenges with declining revenues and profit margins. The balance sheet remains robust with strong equity and low leverage, but cash flow is concerning with significant declines in operating cash flow and free cash flow. Overall, financial stability is maintained, but cash flow issues need urgent attention.

Income Statement

Redsun Services Group Ltd has experienced fluctuating revenues over recent years, with a slight decline in 2024 compared to 2023. The gross profit margin has also decreased from previous years, indicating some pressure on cost efficiency. However, the company has maintained profitability with positive net income, albeit at a lower margin compared to earlier periods. The trend suggests some challenges in sustaining revenue growth and profit margins.

Balance Sheet

The balance sheet shows a strong equity base with a healthy equity ratio, reflecting financial stability. The debt-to-equity ratio remains low, indicating prudent leverage practices. The return on equity has decreased over time, which may suggest a need for improved efficiency in utilizing equity to generate profits. Overall, the balance sheet remains robust with a substantial cash reserve.

Cash Flow

The cash flow statement highlights a significant decline in operating cash flow in 2024, suggesting challenges in cash generation from operations. Free cash flow has also been inconsistent, with zero reported for the latest year. The company needs to address these cash flow issues to ensure liquidity and support future investments. The operating cash flow to net income ratio has dropped significantly, indicating potential issues in translating profits into cash.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.03B	1.06B	1.10B	1.13B	767.85M
Gross Profit	199.56M	252.44M	256.37M	320.40M	214.34M
EBITDA	113.76M	165.61M	162.06M	215.87M	112.77M
Net Income	14.39M	10.87M	91.99M	127.95M	69.75M
Balance Sheet
Total Assets	1.66B	1.69B	1.58B	1.34B	1.11B
Cash, Cash Equivalents and Short-Term Investments	560.57M	638.15M	546.35M	697.61M	826.24M
Total Debt	31.07M	47.21M	59.96M	1.38M	1.36M
Total Liabilities	749.24M	795.31M	689.96M	530.52M	387.19M
Stockholders Equity	898.06M	883.67M	872.81M	780.82M	690.19M
Cash Flow
Free Cash Flow	-56.00M	113.34M	-200.51M	185.85M	161.37M
Operating Cash Flow	-41.78M	122.72M	-186.28M	202.05M	171.29M
Investing Cash Flow	-18.41M	-7.79M	-21.04M	-98.61M	-52.25M
Financing Cash Flow	-18.41M	-23.44M	54.41M	-60.29M	374.38M

Redsun Services Group Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.40
• 50DMA: Negative
• 100DMA: Negative
• 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:1971, the sentiment is Negative. The current price of 0.4 is below the 20-day moving average (MA) of 0.41, above the 50-day MA of 0.39, and below the 200-day MA of 0.45, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 44.78 is Neutral, neither overbought nor oversold. The STOCH value of 57.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1971.

Redsun Services Group Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2215	62 Neutral	HK$734.30M	16.11	5.41%	―	-4.12%	-38.34%
Sector *	54 Neutral	$1.18B	3.56	0.13%	6.38%	-2.13%	-128.06%
1971	52 Neutral	HK$151.48M	10.40	1.61%	―	-5.39%	8.07%
2168	51 Neutral	HK$246.58M	14.76	1.67%	―	-5.11%	―
6958	41 Neutral	HK$132.80M	―	-24.52%	―	-4.77%	-194.39%

Redsun Services Group Ltd Corporate Events

Redsun Services Group Ltd Successfully Passes All Resolutions at AGM

Redsun Services Group Ltd announced that all ordinary resolutions were passed at its Annual General Meeting held on June 25, 2025. The resolutions included the adoption of financial statements, re-election of directors, and authorization for the board to fix remuneration and appoint auditors. Additionally, mandates were given to the directors to repurchase and issue shares. The unanimous approval of these resolutions reflects strong shareholder support and positions the company for continued operational stability.

Redsun Services Group Secures Approval for Key Resolutions at EGM

Redsun Services Group Limited announced the successful passage of ordinary resolutions during their Extraordinary General Meeting held on May 21, 2025. The resolutions, which received unanimous approval, pertain to the Parking Spaces Transfer Framework Agreement and the Equity Transfer Agreements, indicating a strategic move to enhance operational capabilities and streamline asset management. This development could potentially strengthen Redsun Services Group’s market position and provide clarity and direction for stakeholders involved.

Redsun Services Group Ltd to Hold EGM for Strategic Agreements

Redsun Services Group Ltd has announced an extraordinary general meeting (EGM) scheduled for May 21, 2025, to discuss and potentially approve two key resolutions. These include the Parking Spaces Transfer Framework Agreement and the Equity Transfer Agreements, both of which are significant for the company’s strategic operations and require shareholder approval. The outcomes of these agreements could impact the company’s operational capabilities and market positioning.

Redsun Services Group Ltd Announces Annual General Meeting and Key Resolutions

Redsun Services Group Ltd has announced its upcoming annual general meeting scheduled for June 25, 2025, in Hong Kong. The meeting will cover several key resolutions, including the adoption of the company’s audited financial statements for 2024, re-election of board members, and the reappointment of the company’s auditor. Additionally, the board seeks approval for mandates to repurchase shares and issue new shares, which could impact the company’s market operations and shareholder value.