Redsun Services Group Ltd (1971) AI Stock Analysis

• Market Cap: HK$170.15M
• Dividend Yield: N/A
• Average Volume (3M): 284.00K
• Price to Earnings (P/E): 78.8
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: HK$0.50 ▲(21.95% Upside)

The overall stock score of 59 reflects a mixed outlook. The strong balance sheet and positive technical indicators are offset by concerns over high valuation and weak cash flow performance. The lack of earnings call data and corporate events means these factors did not influence the score.

Positive Factors

Strong Balance Sheet

A robust balance sheet with low leverage and ample equity provides financial stability, allowing the company to weather economic fluctuations and invest in growth opportunities.

Diverse Revenue Streams

Diverse revenue streams from various services reduce dependency on a single income source, enhancing resilience against sector-specific downturns and supporting long-term growth.

Strategic Partnerships

Strategic partnerships expand market reach and service capabilities, fostering competitive advantages and supporting sustainable revenue growth over time.

Negative Factors

Declining Cash Flow

Declining cash flow indicates challenges in converting profits into cash, potentially impacting liquidity and limiting the company's ability to fund operations and growth initiatives.

Revenue Growth Pressure

Pressure on revenue growth suggests challenges in market expansion or competition, which could affect long-term profitability and market position if not addressed.

Margin Decline

A declining margin indicates cost pressures or pricing challenges, which can erode profitability and require strategic adjustments to maintain competitive advantage.

Redsun Services Group Ltd Business Overview & Revenue Model

Company Description

Redsun Services Group Limited, an investment holding company, provides community services in Jiangsu Province, China. The company offers property management services, such as security, cleaning, greening and gardening, facility management, customer services, and repairs and maintenance to property owners, residents, and tenants covering residential, commercial, and other properties; and to a variety of commercial properties comprising shopping malls, home improvement and furnishings malls, hotels, and theme parks, as well as to other properties consisting of office buildings and schools. It also provides value-added services to non-property owners, including consulting services to other property management companies; preliminary planning and design consultancy services to property developers for property development projects; sales assistance services to property developers at property sales venues and display units, including visitor reception, cleaning, security inspection, and maintenance; and other value-added services to property developers, such as inspection services. In addition, the company offers community value-added services to residential property owners and residents, which include property brokerage, property decoration, community convenience services, assets management, and common area value-added services. Further, it provides household, decoration, software maintenance, and pension services. The company was founded in 2003 and is headquartered in Nanjing, China. Redsun Services Group Limited is a subsidiary of Redsun Services Group (Holdings) Limited.

How the Company Makes Money

Redsun Services Group Ltd generates revenue through multiple streams, primarily from its property management services, which include managing residential complexes, commercial properties, and mixed-use developments. The company charges management fees based on the size and complexity of the properties it oversees. Additionally, Redsun earns income from ancillary services such as cleaning, maintenance, and security, which are often contracted separately. These services are typically billed on a per-service basis or through long-term contracts with clients. The company's strategic partnerships with real estate developers and property owners also contribute to its revenue, as they provide a steady pipeline of contracts and projects. Furthermore, Redsun's focus on expanding its service offerings and geographic reach helps to drive revenue growth in the competitive market.

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. The company needs to address these issues to enhance profitability and cash flow stability in the future.

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: Positive
• Last Price: 0.41
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 0.41 is above the 20-day moving average (MA) of 0.40, above the 50-day MA of 0.37, and above the 200-day MA of 0.39, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 59.70 is Neutral, neither overbought nor oversold. The STOCH value of 61.11 is Neutral, 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
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
1971	59 Neutral	HK$170.15M	78.85	0.22%	―	8.56%	―
2215	53 Neutral	HK$275.36M	8.06	4.11%	―	-7.17%	-22.01%
2168	51 Neutral	HK$220.38M	11.55	1.92%	―	-8.64%	―
6958	46 Neutral	HK$117.24M	-0.47	-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.