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

Redsun Services Group Ltd (1971) AI Stock Analysis

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HK:1971

Redsun Services Group Ltd

(1971)

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Neutral 52 (OpenAI - 5.2)
Rating:52Neutral
Price Target:
HK$0.37
▼(-2.89% Downside)
Action:ReiteratedDate:01/16/26
The score is mainly supported by balance-sheet strength (low leverage and solid equity), but it is pulled down by weak cash-flow conversion, softening revenue/margins, bearish technical positioning (below key moving averages with negative MACD), and an elevated P/E with no dividend yield support.
Positive Factors
Strong balance sheet
A strong equity base, low leverage and substantial cash reserves provide durable financial flexibility. This supports contract performance during downturns, enables selective M&A or investments in service capabilities, and reduces refinancing risk over the next several quarters.
Negative Factors
Operating cash flow deterioration
A marked drop in operating cash conversion and inconsistent free cash flow undermine the company’s self‑funding ability. Over months this weakens liquidity buffer, constrains reinvestment in service quality or growth, and may force external financing under adverse terms.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong balance sheet
A strong equity base, low leverage and substantial cash reserves provide durable financial flexibility. This supports contract performance during downturns, enables selective M&A or investments in service capabilities, and reduces refinancing risk over the next several quarters.
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...
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 ...

Redsun Services Group Ltd Financial Statement Overview

Summary
Mixed fundamentals: a strong balance sheet with low leverage and solid equity supports stability, but revenue/margin pressure and a notable deterioration in operating cash flow (including inconsistent/zero free cash flow) weaken overall financial quality.
Income Statement
65
Positive
Balance Sheet
75
Positive
Cash Flow
50
Neutral
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.07B1.03B1.06B1.10B1.13B767.85M
Gross Profit185.42M199.56M252.44M256.37M320.40M214.34M
EBITDA100.20M113.76M165.61M141.38M207.08M112.77M
Net Income2.23M14.39M10.87M91.99M127.95M69.75M
Balance Sheet
Total Assets1.58B1.66B1.69B1.58B1.34B1.11B
Cash, Cash Equivalents and Short-Term Investments478.04M560.57M638.15M546.35M697.61M826.24M
Total Debt24.20M31.07M47.21M59.96M1.38M1.36M
Total Liabilities641.94M749.24M795.31M689.96M530.52M387.19M
Stockholders Equity922.50M898.06M883.67M872.81M780.82M690.19M
Cash Flow
Free Cash Flow90.47M-56.00M113.34M-200.51M185.85M161.37M
Operating Cash Flow100.92M-41.78M122.72M-186.28M202.05M171.29M
Investing Cash Flow-14.47M-18.41M-7.79M-21.04M-98.61M-52.25M
Financing Cash Flow-10.00M-18.41M-23.44M54.41M-60.29M374.38M

Redsun Services Group Ltd Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.38
Price Trends
50DMA
0.36
Negative
100DMA
0.38
Negative
200DMA
0.38
Negative
Market Momentum
MACD
-0.01
Positive
RSI
40.29
Neutral
STOCH
66.67
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 0.34, above the 50-day MA of 0.36, and above the 200-day MA of 0.38, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 40.29 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 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%
58
Neutral
HK$238.65M4.784.36%-7.17%-22.01%
52
Neutral
HK$136.95M-3.820.24%8.56%
50
Neutral
HK$169.52M13.461.53%-8.64%
48
Neutral
HK$103.75M-0.45-27.25%-0.04%-104.98%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1971
Redsun Services Group Ltd
0.33
-0.09
-21.43%
HK:1755
S-Enjoy Service Group Co., Ltd.
2.80
0.00
0.00%
HK:1922
Yincheng Life Service Co., Ltd.
1.36
0.00
0.00%
HK:2168
Kaisa Prosperity Holdings Ltd.
1.10
-0.75
-40.54%
HK:2215
Dexin Services Group Ltd.
0.26
-0.62
-70.45%
HK:6958
Zhenro Services Group Limited
0.10
-0.03
-23.66%

Redsun Services Group Ltd Corporate Events

Redsun Services Names New Chairman as Zeng Junkai Steps Down
Jan 14, 2026
Redsun Services Group Limited has announced the resignation of non-executive director and chairman Zeng Junkai, who is also stepping down as chairman of the nomination committee, member of the audit committee and authorised representative, effecti...
Redsun Services Sets Out Board and Committee Line-up
Jan 14, 2026
Redsun Services Group Limited has announced the current composition of its board of directors and the allocation of roles across its key governance committees. The board consists of two executive directors, Mr. Jia Hongbo and Mr. Chen Yichun, and ...
Redsun Services Delays Dispatch of Circular on New Services Framework Agreements
Jan 5, 2026
Redsun Services Group Limited has announced a delay in sending a shareholder circular that will detail its new Parking Space Sales and Leasing Agency Services Framework Agreement and new Property Management Services Master Framework Agreement. The...
Redsun Services Group Ltd Announces New Agreements for Continued Services
Dec 8, 2025
Redsun Services Group Ltd has announced its intention to enter into new agreements for parking space sales and leasing agency services, and property management services, effective from December 2025. These agreements are a continuation of existing...
Redsun Services Group Forms Nomination Committee to Strengthen Governance
Dec 8, 2025
Redsun Services Group Limited has established a Nomination Committee as part of its governance structure, which will be composed of at least three members, primarily independent non-executive directors. This move aligns with the requirements of th...
Redsun Services Group Ltd Faces Receivership of Pledged Shares
Oct 23, 2025
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 conditi...
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: Jan 16, 2026