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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 54 (OpenAI - 4o)
Rating:54Neutral
Price Target:
HK$0.50
▲(31.58% Upside)
The overall stock score is primarily influenced by the mixed financial performance, with strong balance sheet metrics but weak cash flow and income statement results. Technical analysis suggests bearish trends, and the high P/E ratio indicates potential overvaluation. The absence of a dividend yield further impacts the valuation negatively.

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

Redsun Services Group Ltd Business Overview & Revenue Model

Company DescriptionRedsun 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 MoneyRedsun 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. The company needs to address these issues to enhance profitability and cash flow stability in the future.
Income Statement
65
Positive
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
75
Positive
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
50
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.03B1.06B1.10B1.13B767.85M
Gross Profit199.56M252.44M256.37M320.40M214.34M
EBITDA113.76M165.61M162.06M215.87M112.77M
Net Income14.39M10.87M91.99M127.95M69.75M
Balance Sheet
Total Assets1.66B1.69B1.58B1.34B1.11B
Cash, Cash Equivalents and Short-Term Investments560.57M638.15M546.35M697.61M826.24M
Total Debt31.07M47.21M59.96M1.38M1.36M
Total Liabilities749.24M795.31M689.96M530.52M387.19M
Stockholders Equity898.06M883.67M872.81M780.82M690.19M
Cash Flow
Free Cash Flow-56.00M113.34M-200.51M185.85M161.37M
Operating Cash Flow-41.78M122.72M-186.28M202.05M171.29M
Investing Cash Flow-18.41M-7.79M-21.04M-98.61M-52.25M
Financing Cash Flow-18.41M-23.44M54.41M-60.29M374.38M

Redsun Services Group Ltd Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.38
Price Trends
50DMA
0.38
Negative
100DMA
0.39
Negative
200DMA
0.41
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
43.63
Neutral
STOCH
55.56
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 below the 20-day moving average (MA) of 0.39, below the 50-day MA of 0.38, and below the 200-day MA of 0.41, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 43.63 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 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
59
Neutral
458.94M13.445.65%-7.17%-22.01%
54
Neutral
HK$157.70M73.080.22%8.56%
51
Neutral
144.21M-0.58-28.03%-0.04%-104.98%
51
Neutral
306.68M16.070.00%-8.64%0.00%
65
Neutral
$2.17B12.193.79%4.94%3.15%1.96%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1971
Redsun Services Group Ltd
0.38
-0.13
-25.49%
HK:1755
S-Enjoy Service Group Co., Ltd.
2.80
-0.28
-9.09%
HK:1922
Yincheng Life Service Co., Ltd.
1.36
0.00
0.00%
HK:2168
Kaisa Prosperity Holdings Ltd.
1.99
0.34
20.61%
HK:2215
Dexin Services Group Ltd.
0.50
-1.10
-68.75%
HK:6958
Zhenro Services Group Limited
0.14
-0.06
-30.00%

Redsun Services Group Ltd Corporate Events

Redsun Services Group Ltd Reports Revenue Growth Amidst Profit Decline
Aug 26, 2025

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
Aug 14, 2025

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.

Redsun Services Group Ltd Successfully Passes All Resolutions at AGM
Jun 25, 2025

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.

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: Sep 16, 2025