Redsun Services Group Ltd (1971) AI Stock Analysis

• Market Cap: HK$174.30M
• Dividend Yield: N/A
• Average Volume (3M): 11.63K
• Price to Earnings (P/E): 11.2
• Beta (1Y): 0.89
• Revenue Growth: -5.39%
• EPS Growth: 8.07%
• Country: HK
• Employees: 2,878
• Sector: Real Estate
• Sector Strength: 72
• Industry: Real Estate - Services
• EPS (TTM): 0.04
• Shares Outstanding: 415,000,000
• 10 Day Avg. Volume: 9,500
• 30 Day Avg. Volume: 11,633
• PEG Ratio: -0.30
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.02
• 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: 54 Neutral
• Price Target: ―

Redsun Services Group Ltd's stock receives a score of 54, primarily influenced by its mixed financial performance and negative technical indicators. The company's strong balance sheet is overshadowed by declining revenues, margins, and cash flow challenges. Technical analysis suggests bearish trends, while the valuation is modest but lacks dividend appeal. No significant earnings call data or corporate events were provided to alter this assessment.

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 shows a mixed financial performance. The income statement reveals pressures on revenue growth and margins, with a decline in revenues and gross profit margin in 2024. The balance sheet remains strong with low leverage and ample equity, but the return on equity has decreased. Cash flow performance is concerning, with a significant decline in operating cash flow, indicating challenges in 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
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
	EBIT
91.65M	143.50M	135.09M	189.81M	106.00M
	EBITDA
113.76M	165.61M	162.06M	215.87M	112.77M
	Net Income Common Stockholders
14.39M	10.87M	91.99M	127.95M	69.75M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
560.57M	638.15M	546.35M	697.61M	826.24M
	Total Assets
1.66B	1.69B	1.58B	1.34B	1.11B
	Total Debt
31.07M	47.21M	59.96M	1.38M	1.36M
	Net Debt
-529.51M	-590.56M	-485.39M	-696.23M	-824.88M
	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
0.00	113.34M	-200.51M	185.85M	161.37M
	Operating Cash Flow
0.00	122.72M	-186.28M	202.05M	171.29M
	Investing Cash Flow
0.00	-7.79M	-21.04M	-98.61M	-52.25M
	Financing Cash Flow
0.00	-23.44M	54.41M	-60.29M	374.38M

Redsun Services Group Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.42
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1971, the sentiment is Positive. The current price of 0.42 is above the 20-day moving average (MA) of 0.37, above the 50-day MA of 0.39, and below the 200-day MA of 0.46, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 70.41 is Negative, neither overbought nor oversold. The STOCH value of 92.92 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
2669	76 Outperform	$17.14B	10.47		3.64%	―	―
3316	71 Outperform	HK$6.51B	10.99	36.29%	10.70%	25.93%	8.97%
6098	68 Neutral	HK$21.46B	10.93	4.96%	0.36%	1.31%	379.84%
1995	68 Neutral	HK$3.47B	6.72	9.70%	6.65%	2.68%	8.49%
1971	54 Neutral	HK$174.30M	11.20	1.61%	―	-5.39%	8.07%
Sector *	51 Neutral	$1.16B	3.28	-0.13%	9.52%	-1.86%	-126.37%
3319	46 Neutral	€4.06B	―	-29.17%	17.94%	-11.94%	-756.32%

Redsun Services Group Ltd Corporate Events

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.

Redsun Services Group Delays Circular Dispatch for Transfer Agreements

Redsun Services Group Limited has announced a delay in the dispatch of a circular related to its Parking Spaces Transfer Framework Agreement and Equity Transfer Agreements. The circular, initially expected by March 28, 2025, will now be dispatched by April 30, 2025, due to the need for additional time to finalize certain information. This delay may impact the timeline for shareholder engagement and decision-making processes related to these agreements.

Redsun Services Group Ltd Reports 2024 Annual Results with Mixed Financial Performance

Redsun Services Group Ltd reported a decrease in revenue by 3.6% to RMB1,026.7 million for the year ended 31 December 2024. Despite a decline in gross profit by 20.9%, the company saw an increase in profit attributable to equity shareholders by 32.1%. The group managed 322 projects with a contracted gross floor area of approximately 54.2 million square meters, marking a growth in its management portfolio.

Redsun Services Group Ltd Schedules Board Meeting for Annual Results

Redsun Services Group Ltd has announced a board meeting scheduled for March 25, 2025, to discuss and approve the company’s annual results for the year ending December 31, 2024. The meeting will also consider the recommendation of a final dividend payment, which could have implications for the company’s financial strategy and stakeholder returns.

Redsun Services Group Announces Major Acquisition of Parking Spaces and Equity Interests

Redsun Services Group Limited has announced a significant acquisition involving parking spaces and equity interests in target companies. This transaction, valued at over RMB230.92 million for parking spaces and RMB257.69 million for equity interests, marks a strategic expansion of the company’s asset portfolio. The acquisitions are categorized as very substantial and connected transactions under Hong Kong’s Listing Rules, necessitating shareholder approval. Upon completion, the financial results of the acquired entities will be consolidated into Redsun’s financial statements, potentially enhancing its market positioning and operational capabilities.