Renrui Human Resources Technology Holdings Limited (6919) AI Stock Analysis

• Market Cap: HK$586.16M
• Dividend Yield: 2.35%
• Average Volume (3M): 32.99K
• Price to Earnings (P/E): 10.9
• Beta (1Y): -0.08
• Revenue Growth: 20.23%
• EPS Growth: -275.42%
• Country: HK
• Employees: 1,168
• Sector: Industrials
• Sector Strength: 84
• Industry: Staffing & Employment Services
• EPS (TTM): -0.67
• Shares Outstanding: 156,699,870
• 10 Day Avg. Volume: 22,550
• 30 Day Avg. Volume: 32,993
• PEG Ratio: -0.92
• Price to Book (P/B): 0.47
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.57
• 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

• Rating: 54 Neutral
• Price Target: HK$4.00 ▲(4.44%Upside)

Renrui Human Resources Technology Holdings Limited's overall stock score is primarily impacted by substantial revenue growth offset by severe profitability and cash flow issues. The technical analysis indicates neutral market sentiment, and the valuation is weakened by negative earnings, though partially mitigated by a modest dividend yield.

Renrui Human Resources Technology Holdings Limited Business Overview & Revenue Model

Company Description

Renrui Human Resources Technology Holdings Limited (6919) is a leading HR solutions provider in China, specializing in the provision of flexible staffing services. The company offers a comprehensive range of services including recruitment process outsourcing, business process outsourcing, and other human resources related services. It serves a diverse client base across various industries, helping organizations meet their staffing needs efficiently.

How the Company Makes Money

Renrui Human Resources Technology Holdings Limited primarily generates revenue through its flexible staffing services, which involve providing temporary staff to client companies and charging a service fee. The company also earns income from recruitment process outsourcing, where it handles the entire recruitment process for its clients, and business process outsourcing, where it manages specific business functions for companies. Additionally, Renrui may have strategic partnerships with enterprises that require large-scale staffing solutions, further contributing to its revenue streams.

Renrui Human Resources Technology Holdings Limited Financial Statement Overview

Summary

Despite a revenue growth of 22.40% from 2023 to 2024, Renrui Human Resources Technology Holdings Limited faces significant profitability challenges with a net profit margin of -12.97%. The balance sheet shows moderate leverage, but the negative net income impacts the overall financial health. Cash flow strains are evident with negative operating and free cash flows, although there is some improvement in cash management.

Income Statement

Renrui Human Resources Technology Holdings Limited has shown a volatile income statement with significant challenges in profitability. The company experienced a substantial revenue growth of 22.40% from 2023 to 2024, but net income turned negative in 2024, resulting in a net profit margin of -12.97%. The gross profit margin improved slightly to 9.11% in 2024, but negative EBIT and EBITDA margins indicate operational inefficiencies. The declining profitability and negative earnings are concerning despite revenue growth.

Balance Sheet

The balance sheet reflects moderate stability with a debt-to-equity ratio of 0.41 in 2024, indicating a manageable level of debt relative to equity. However, the equity ratio decreased to 45.15%, suggesting a higher reliance on liabilities. The company's return on equity is negative due to the negative net income, highlighting a lack of profitability. Overall, the balance sheet shows a reasonable debt level but challenges in generating returns for shareholders.

Cash Flow

The cash flow statement reveals significant strains in cash management, with a negative operating cash flow of -105,999,000 in 2024. The free cash flow also remains negative, although it improved by 27.68% compared to 2023. The operating cash flow to net income ratio is positive, indicating some cash generation from operations despite net losses. The cash flow statement suggests improvement in cash flow management, but the negative free cash flow and operating cash flow present liquidity concerns.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
5.47B	4.47B	3.64B	4.74B	2.83B
	Gross Profit
498.83M	422.50M	184.70M	251.79M	270.86M
	EBIT
-23.27M	82.79M	23.72M	116.82M	198.54M
	EBITDA
140.40M	143.47M	73.59M	174.99M	236.04M
	Net Income Common Stockholders
-70.97M	41.05M	6.86M	101.67M	182.62M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
442.15M	346.09M	474.56M	852.65M	1.15B
	Total Assets
2.65B	2.29B	2.13B	1.99B	1.77B
	Total Debt
490.17M	203.45M	137.72M	82.89M	58.56M
	Net Debt
92.47M	-81.43M	-216.72M	-555.49M	-908.66M
	Total Liabilities
1.23B	786.83M	678.29M	715.19M	533.86M
	Stockholders Equity
1.20B	1.28B	1.25B	1.25B	1.23B
Cash Flow		Free Cash Flow
-114.61M	-158.47M	105.29M	-126.76M	146.04M
	Operating Cash Flow
-106.00M	-151.89M	118.91M	-89.96M	155.61M
	Investing Cash Flow
28.27M	38.78M	-328.11M	-126.16M	-200.22M
	Financing Cash Flow
190.06M	43.22M	-91.34M	-108.93M	-16.67M

Renrui Human Resources Technology Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.83
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6919, the sentiment is Negative. The current price of 3.83 is below the 20-day moving average (MA) of 3.86, below the 50-day MA of 3.93, and below the 200-day MA of 4.21, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 45.73 is Neutral, neither overbought nor oversold. The STOCH value of 65.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:6919.

Renrui Human Resources Technology Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6100	71 Outperform	HK$1.86B	12.06	4.48%	―	-10.48%	30250.00%
6862	69 Neutral	$80.93B	15.40	42.85%	10.77%	1.35%	4.06%
1526	63 Neutral	HK$1.67B	5.18	24.13%	4.29%	-3.85%	-19.28%
Sector *	57 Neutral	$1.32B	4.07	-2.93%	11.10%	3.37%	-51.35%
6088	55 Neutral	HK$16.16B	13.48	6.27%	―	5.75%	18.75%
6919	54 Neutral	HK$586.16M	10.94	-5.73%	2.35%	20.23%	-275.42%

Renrui Human Resources Technology Holdings Limited Corporate Events

Renrui Human Resources Expands Through Strategic Framework Agreements

Renrui Human Resources Technology Holdings Limited has entered into three framework agreements with Beyondsoft Corporation and Ruibo Gongchuang to enhance its service offerings. These agreements, effective from June 20, 2025, to December 31, 2027, involve the transfer and subcontracting of technical services, provision of HR recruitment and payroll management services, and SaaS services. This strategic collaboration is expected to strengthen Renrui’s operational capabilities and market position, leveraging Beyondsoft’s expertise and client base.

Renrui Human Resources Secures Shareholder Approval for Key Resolutions at AGM

Renrui Human Resources Technology Holdings Limited announced that all resolutions proposed at its Annual General Meeting on June 10, 2025, were approved by shareholders. Key resolutions included the re-election of directors, authorization for the board to fix directors’ remuneration, re-appointment of PricewaterhouseCoopers as auditor, and granting of mandates to issue and repurchase shares. This approval reflects shareholder confidence in the company’s governance and strategic direction, potentially strengthening its market position and operational capabilities.

Renrui Human Resources Announces 2025 AGM Details and Key Resolutions

Renrui Human Resources Technology Holdings Limited has announced the details of its upcoming Annual General Meeting (AGM) scheduled for June 10, 2025, in Shanghai. The meeting will address several key resolutions, including the adoption of the company’s financial statements for 2024, the re-election of certain directors, and the re-appointment of PricewaterhouseCoopers as the company’s auditor. Additionally, the AGM will consider authorizing the board to allot and issue new shares, which could impact the company’s capital structure and shareholder value.

Renrui Human Resources Gains Shareholder Approval for Strategic Disposal

Renrui Human Resources Technology Holdings Limited announced that its shareholders have approved an ordinary resolution at an extraordinary general meeting held on April 17, 2025. The resolution involves the confirmation, approval, and ratification of a Disposal, an Asset Purchase Agreement, and a Supplemental Agreement between the Seller and Buyer, facilitating the implementation of related transactions. This approval signifies a strategic move for the company, potentially impacting its operational focus and market positioning.

Renrui Human Resources Reports 2024 Financial Results Amid IT Talent Demand Surge

Renrui Human Resources Technology Holdings Limited reported its annual results for 2024, showing a significant revenue increase of 22.4% to RMB 5,473.3 million, driven by the rising demand for IT talents. Despite this growth, the company faced a loss of RMB 58.2 million due to an impairment provision related to its subsidiary, Shanghai Sirui, which did not meet performance expectations. The company has expanded its IT talent pool by 25% and its flexible staffing employees by 14.8%, aligning with the macroeconomic policies and digital transformation trends in China.

Renrui Human Resources Schedules EGM to Approve Key Transactions

Renrui Human Resources Technology Holdings Limited has announced an Extraordinary General Meeting (EGM) scheduled for April 17, 2025, to consider and approve the Disposal, Asset Purchase Agreement, and Supplemental Agreement. This meeting is significant for the company as it involves ratifying key transactions that could impact its operational strategy and shareholder interests.