Redsun Services Group Ltd (1971) AI Stock Analysis

• Market Cap: HK$157.70M
• Dividend Yield: N/A
• Average Volume (3M): 284.00K
• Price to Earnings (P/E): 73.1
• Beta (1Y): 0.75
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: HK$0.37 ▼(-2.89% Downside)

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.

Diversified revenue streams and partnerships

Multiple service lines (property management, cleaning, maintenance, security) and developer partnerships create recurring fee income and cross‑sell opportunities. Structural diversification reduces client concentration risk and supports a steadier contract pipeline across market cycles.

Broad service offering and market position

Scale across residential and commercial segments and an integrated service model create competitive advantages: operational synergies, higher client retention, and barriers to entry for small rivals. This structural positioning supports sustainable contract wins and margin durability.

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.

Revenue and margin pressure

Softening revenue and contracting gross margin signal competitive or cost pressures. Persisting over several quarters this reduces profitability and free cash generation, forcing price increases or cost cuts that could impair service levels and longer‑term client retention.

Declining return on equity / efficiency

A falling ROE reflects weaker capital efficiency, likely driven by margin compression or slower profitable growth. If sustained, this limits internal capital for expansion, pressures shareholder returns, and may require strategic changes to restore operating leverage.

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

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

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: Neutral
• Last Price: 0.38
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1971, the sentiment is Neutral. The current price of 0.38 is above the 20-day moving average (MA) of 0.38, below the 50-day MA of 0.39, and below the 200-day MA of 0.38, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 50.47 is Neutral, neither overbought nor oversold. The STOCH value of 95.83 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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%
2215	58 Neutral	HK$243.24M	7.12	4.11%	―	-7.17%	-22.01%
1971	52 Neutral	HK$157.70M	73.08	0.22%	―	8.56%	―
2168	50 Neutral	HK$167.98M	8.80	1.92%	―	-8.64%	―
6958	48 Neutral	HK$118.28M	-0.48	-24.03%	―	-0.04%	-104.98%

Redsun Services Group Ltd Corporate Events

Redsun Services Names New Chairman as Zeng Junkai Steps Down

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, effective 14 January 2026, to focus on personal commitments. The company stated that Zeng’s departure will not affect the board’s quorum or normal operations and noted there is no disagreement between him and the board. On the same date, the board appointed Jia Hongbo, currently joint company secretary and a long-serving senior member within the controlling shareholder Hong Yang Group, as executive director, chairman, chairman of the nomination committee and authorised representative. With nearly two decades of engineering management experience and more than a decade in corporate governance and company secretarial work, including handling IPO and ongoing compliance for Redsun entities, Jia’s elevation signals a continuity-focused leadership transition that reinforces governance expertise at the top of the company without disrupting existing board functions.

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 Sets Out Board and Committee Line-up

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 three independent non-executive directors, Ms. Wang Fen, Mr. Li Xiaohang and Mr. Zhao Xianbo, who collectively chair and sit on the audit, nomination and remuneration committees, reinforcing the company’s corporate governance framework and oversight structure for shareholders and other stakeholders.

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 Delays Dispatch of Circular on New Services Framework Agreements

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 circular, originally expected to be dispatched on or before January 5, 2026, along with the related proxy form and notice of an extraordinary general meeting, is now expected to be sent on or before January 30, 2026 due to the need for additional time to finalize certain information, potentially pushing back shareholder review and approval timelines for these related-party framework arrangements.

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 Ltd Announces New Agreements for Continued Services

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 transactions and are categorized as major transactions and continuing connected transactions under Hong Kong’s Listing Rules, requiring independent shareholder approval. The company has appointed an independent financial adviser to ensure the transactions are fair and in the best interest of shareholders.

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 Forms Nomination Committee to Strengthen Governance

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 the Hong Kong Stock Exchange’s Listing Rules, potentially enhancing the company’s governance and compliance framework.

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 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.

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.