Redsun Services Group Ltd (1971) AI Stock Analysis

• Market Cap: HK$105.82M
• Dividend Yield: N/A
• Average Volume (3M): 284.00K
• Price to Earnings (P/E): 49.0
• Beta (1Y): 0.79
• Revenue Growth: 8.56%
• EPS Growth: N/A
• Country: HK
• Employees: 2,878
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 0.06
• Shares Outstanding: 415,000,000
• 10 Day Avg. Volume: 847,000
• 30 Day Avg. Volume: 284,000
• PEG Ratio: 0.35
• Price to Book (P/B): 0.18
• Price to Sales (P/S): 0.16
• P/FCF Ratio: -2.92
• 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: Hold
• Number of Analyst Covering: 0

• Rating: 49 Neutral
• Price Target: HK$0.50 ▲(92.31% Upside)

The overall stock score of 49 reflects significant challenges. The most impactful factor is the weak technical analysis, indicating bearish market sentiment. Financial performance is mixed, with a strong balance sheet but concerns over cash flow and revenue growth. The high P/E ratio suggests potential overvaluation, further impacting the score.

Redsun Services Group Ltd Business Overview & Revenue Model

Company Description

Redsun Services Group Ltd, established in 1971, operates in the integrated property management services sector. It provides a range of comprehensive services including property management, community value-added services, and commercial operational services. The company is dedicated to enhancing the living and working environment of its clients through innovative and quality service solutions.

How the Company Makes Money

Redsun Services Group Ltd generates revenue primarily through its property management services, which include basic property management, property maintenance, and customer services for residential and commercial properties. Additionally, the company earns from community value-added services such as utility management, landscaping, and security services. Commercial operational services also contribute to its revenue, where the company manages and operates retail and office spaces, ensuring optimal tenant satisfaction and property utilization. Key partnerships with property developers and strategic collaborations with service providers enhance its service offerings and market reach, further supporting its revenue streams.

Redsun Services Group Ltd Financial Statement Overview

Summary

Redsun Services Group Ltd shows a mixed financial performance. The balance sheet is strong with low leverage and ample equity, but the income statement reflects pressures on revenue growth and margins. Cash flow performance is a concern, with declining operational cash generation.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.07B	1.03B	1.06B	1.10B	1.13B	767.85M
Gross Profit	185.42M	199.56M	252.44M	256.37M	320.40M	214.34M
EBITDA	100.20M	113.76M	165.61M	141.38M	207.08M	112.77M
Net Income	2.23M	14.39M	10.87M	91.99M	127.95M	69.75M
Balance Sheet
Total Assets	1.58B	1.66B	1.69B	1.58B	1.34B	1.11B
Cash, Cash Equivalents and Short-Term Investments	478.04M	560.57M	638.15M	546.35M	697.61M	826.24M
Total Debt	24.20M	31.07M	47.21M	59.96M	1.38M	1.36M
Total Liabilities	641.94M	749.24M	795.31M	689.96M	530.52M	387.19M
Stockholders Equity	922.50M	898.06M	883.67M	872.81M	780.82M	690.19M
Cash Flow
Free Cash Flow	90.47M	-56.00M	113.34M	-200.51M	185.85M	161.37M
Operating Cash Flow	100.92M	-41.78M	122.72M	-186.28M	202.05M	171.29M
Investing Cash Flow	-14.47M	-18.41M	-7.79M	-21.04M	-98.61M	-52.25M
Financing Cash Flow	-10.00M	-18.41M	-23.44M	54.41M	-60.29M	374.38M

Redsun Services Group Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.26
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 0.26 is below the 20-day moving average (MA) of 0.33, below the 50-day MA of 0.36, and below the 200-day MA of 0.40, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 12.36 is Positive, neither overbought nor oversold. The STOCH value of 10.42 is Positive, 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
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
2215	58 Neutral	HK$468.12M	13.71	4.11%	―	-7.17%	-22.01%
2168	52 Neutral	HK$263.53M	13.81	1.92%	―	-8.64%	―
1971	49 Neutral	HK$105.82M	49.04	0.22%	―	8.56%	―
6958	46 Neutral	HK$125.54M	―	-24.03%	―	-0.04%	-104.98%

Redsun Services Group Ltd Corporate Events

Redsun Services Group Ltd Faces Receivership of Pledged Shares

Redsun Services Group Ltd announced that a significant portion of its shares, pledged as security for a restructuring deal, has been placed under receivership. Despite this development, the company asserts that its operations and financial condition remain unaffected, and it is actively seeking legal advice to address the situation.

The most recent analyst rating on (HK:1971) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Redsun Services Group Ltd stock, see the HK:1971 Stock Forecast page.

Redsun Services Group Ltd Reports Revenue Growth Amidst Profit Decline

Redsun Services Group Ltd reported a revenue increase of 9.7% to RMB510.4 million for the first half of 2025, driven mainly by a rise in property management services. However, the company faced a decline in gross profit and profit attributable to equity shareholders, with decreases of 11.1% and 33.2% respectively, compared to the same period in 2024. The company also saw a slight increase in GFA under management but experienced a decrease in contracted GFA. No interim dividend was recommended for the period.

The most recent analyst rating on (HK:1971) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Redsun Services Group Ltd stock, see the HK:1971 Stock Forecast page.

Redsun Services Group Announces Upcoming Board Meeting for Interim Results

Redsun Services Group Ltd has announced a board meeting scheduled for August 26, 2025, to discuss and approve the interim results for the first half of the year ending June 30, 2025. The meeting will also consider the recommendation of an interim dividend, which could impact the company’s financial strategy and shareholder returns.