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Redsun Services Group Ltd (HK:1971)
:1971
Hong Kong Market
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Redsun Services Group Ltd (1971) AI Stock Analysis

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HK:1971

Redsun Services Group Ltd

(1971)

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Neutral 46 (OpenAI - 5.2)
Rating:46Neutral
Price Target:
HK$0.37
▼(-3.16% Downside)
Action:Reiterated
Date:05/07/26
The score is held down primarily by weakening fundamentals: 2025 shifted into losses and cash flow has been materially negative in the last two years. A conservatively levered balance sheet provides some stability, but technicals show only weak-to-neutral momentum and valuation is constrained by negative earnings and no stated dividend yield.
Positive Factors
Conservative balance sheet
Very low leverage and a conservatively levered balance sheet give Redsun durable financial flexibility. Large equity and low debt reduce near-term solvency risk, allowing the company time to restructure operations or access capital without immediate distress despite recent earnings weakness.
Negative Factors
Negative operating and free cash flow
Sustained negative operating and free cash flow undermines internal funding ability and raises near-term liquidity and refinancing risk. If negative cash conversion persists, the company may need external financing or asset sales, constraining investments and hindering recovery plans over the next several months.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Very low leverage and a conservatively levered balance sheet give Redsun durable financial flexibility. Large equity and low debt reduce near-term solvency risk, allowing the company time to restructure operations or access capital without immediate distress despite recent earnings weakness.
Read all positive factors

Redsun Services Group Ltd (1971) vs. iShares MSCI Hong Kong ETF (EWH)

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, custome...

Redsun Services Group Ltd Financial Statement Overview

Summary
Profitability deteriorated sharply with 2025 turning to operating and net losses amid multi-year revenue contraction and margin compression. The balance sheet remains a clear strength with low leverage and strong equity, but cash flow is the weakest area with negative operating and free cash flow in 2024–2025, raising funding and liquidity risk if it persists.
Income Statement
42
Neutral
Balance Sheet
78
Positive
Cash Flow
28
Negative
BreakdownDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue951.44M1.03B1.06B1.10B1.13B
Gross Profit209.82M199.56M252.44M256.37M320.40M
EBITDA106.36M113.76M165.61M141.38M207.08M
Net Income-38.52M14.39M10.87M91.99M127.95M
Balance Sheet
Total Assets1.87B1.66B1.69B1.58B1.34B
Cash, Cash Equivalents and Short-Term Investments415.13M560.57M638.15M546.35M697.61M
Total Debt17.27M31.07M47.21M59.96M1.38M
Total Liabilities934.30M749.24M795.31M689.96M530.52M
Stockholders Equity859.06M898.06M883.67M872.81M780.82M
Cash Flow
Free Cash Flow-140.36M-56.00M113.34M-200.51M185.85M
Operating Cash Flow-119.88M-41.78M122.72M-186.28M202.05M
Investing Cash Flow-13.71M-18.41M-7.79M-21.04M-98.61M
Financing Cash Flow-15.51M-18.41M-23.44M54.41M-60.29M

Redsun Services Group Ltd Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.38
Price Trends
50DMA
0.36
Positive
100DMA
0.37
Negative
200DMA
0.37
Negative
Market Momentum
MACD
<0.01
Positive
RSI
46.56
Neutral
STOCH
43.06
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 0.38 is above the 20-day moving average (MA) of 0.36, above the 50-day MA of 0.36, and above the 200-day MA of 0.37, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 46.56 is Neutral, neither overbought nor oversold. The STOCH value of 43.06 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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
$2.17B12.193.79%4.94%3.15%1.96%
48
Neutral
HK$106.86M-0.45-31.59%-4.58%1.46%
47
Neutral
HK$166.44M13.111.53%-7.13%-14.57%
46
Neutral
HK$149.40M-3.730.24%-7.38%-374.13%
42
Neutral
HK$214.78M-1.054.36%-5.08%-682.55%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1971
Redsun Services Group Ltd
0.36
-0.02
-4.00%
HK:1755
S-Enjoy Service Group Co., Ltd.
2.80
0.00
0.00%
HK:2168
Kaisa Prosperity Holdings Ltd.
1.08
-0.45
-29.41%
HK:2215
Dexin Services Group Ltd.
0.23
-0.57
-70.75%
HK:6958
Zhenro Services Group Limited
0.10
-0.01
-11.97%

Redsun Services Group Ltd Corporate Events

Redsun Services Sets June 2026 AGM to Renew Mandates and Board Seats
Apr 24, 2026
Redsun Services Group Limited has called its annual general meeting for 25 June 2026 in Hong Kong, where shareholders will review and adopt the audited consolidated financial statements for the year ended 31 December 2025 and the accompanying dire...
Redsun Services Clarifies EGM Poll Amid Pledged Share Voting Restrictions
Apr 14, 2026
Redsun Services Group Limited has disclosed the poll results of its extraordinary general meeting held on 14 April 2026, where an ordinary resolution was subject to complex voting restrictions. Because the controlling shareholder&#8217;s 72.77% st...
Controlling Shareholders Move to Reshape Board at Redsun Services Group
Apr 7, 2026
Redsun Services Group Limited has received a shareholder requisition calling for an extraordinary general meeting to overhaul its board. The move is led by two requisitioning shareholders who jointly hold about 68.67% of the company&#8217;s issued...
Redsun Services Swings to 2025 Loss as Revenue Falls and Portfolio Shrinks
Mar 24, 2026
Redsun Services Group reported a 7.3% year-on-year decline in revenue to RMB951.4 million for 2025, as its core property management income fell 8% and value-added services to non-property owners slumped nearly 60%. Community value-added services w...
Redsun Services Calls EGM to Approve New Property Management Framework
Mar 20, 2026
Redsun Services Group Limited has convened an extraordinary general meeting in Hong Kong on 14 April 2026 for shareholders to vote on approving a new Property Management Services Master Framework Agreement and its related annual caps. The resoluti...
Redsun Services Flags RMB36–40 Million Net Loss for 2025
Mar 18, 2026
Redsun Services Group Limited has warned that it expects to swing from a net profit of about RMB14 million in 2024 to a net loss attributable to equity holders of between RMB36 million and RMB40 million for the year ended 31 December 2025. The det...
Redsun Services Flags 2025 Loss on Impairments Amid Property Sector Strains
Mar 17, 2026
Redsun Services Group Limited has warned that it expects to swing to a net loss of about RMB32 million to RMB36 million for the year ended 31 December 2025, compared with a net profit of RMB15 million a year earlier. The preliminary figures are ba...
Redsun Services Sets March Board Meeting to Approve 2025 Results and Consider Final Dividend
Mar 12, 2026
Redsun Services Group Limited has scheduled a board meeting for 24 March 2026 to review and approve its audited annual results for the year ended 31 December 2025. The board will also consider the publication of these results and discuss whether t...
Redsun Services CFO to Resign in February 2026
Feb 10, 2026
Redsun Services Group Limited has announced a leadership change in its finance function, with chief financial officer Hu Chunhuang resigning effective 10 February 2026 to pursue personal goals. The board emphasized that Hu has no disagreements wit...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 07, 2026