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

• Market Cap: HK$685.64M
• Dividend Yield: 2.26%
• Average Volume (3M): 14.12K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.11
• Revenue Growth: 14.29%
• EPS Growth: -200.37%
• Country: HK
• Employees: 1,168
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): 0.29
• Shares Outstanding: 156,699,870
• 10 Day Avg. Volume: 9,200
• 30 Day Avg. Volume: 14,116
• PEG Ratio: 0.03
• Price to Book (P/B): 0.47
• Price to Sales (P/S): 0.10
• P/FCF Ratio: -4.95
• 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: 46 Neutral
• Price Target: HK$4.50 ▲(13.07% Upside)

The overall stock score is primarily influenced by financial performance challenges, including negative profitability and cash flow strains. Technical analysis indicates bearish momentum, further impacting the score. Valuation reflects potential undervaluation but is hindered by negative earnings.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for services and effective market penetration, supporting long-term business expansion.

Business Model

The flexible staffing model provides stable revenue streams and adaptability to market changes, enhancing resilience and client retention.

Cash Flow Management

Improvement in cash flow management suggests better operational efficiency and potential for future investment in growth initiatives.

Negative Factors

Profitability Challenges

Negative profitability indicates operational inefficiencies and poses a risk to financial sustainability, affecting long-term growth potential.

Cash Flow Strains

Negative operating cash flow highlights liquidity concerns, limiting the company's ability to invest in growth and meet financial obligations.

Balance Sheet Health

Decreased equity ratio indicates increased financial leverage, which can heighten financial risk and constrain future borrowing capacity.

Renrui Human Resources Technology Holdings Limited Business Overview & Revenue Model

Company Description

Renrui Human Resources Technology Holdings Limited, an investment holding company, provides human resources services in China. The company operates through Comprehensive Flexible Staffing, Professional Recruitment, and Other Human Resources Solutions segments. It provides general outsourcing services, digital technology and cloud services, and digital operation and customer services; and professional recruitment, business process outsourcing, corporate training, labour dispatch services, and other miscellaneous services. The company was founded in 2010 and is headquartered in Chengdu, China.

How the Company Makes Money

Renrui Human Resources Technology Holdings Limited generates revenue primarily through its various HR service offerings. The company earns money from recruitment process outsourcing (RPO) services, where it manages the recruitment process for clients, charging fees based on successful placements and service contracts. Additionally, the company generates income from staffing services by providing temporary and permanent staff to organizations, receiving placement fees and margins on employee salaries. Renrui also has a technology segment that includes subscription fees from its HR software solutions, which provide clients with tools for managing workforce data, payroll, and employee engagement. Key partnerships with major corporations and integration with technology platforms enable Renrui to enhance its service offerings and expand its market reach, contributing significantly to its revenue streams.

Renrui Human Resources Technology Holdings Limited Financial Statement Overview

Summary

Renrui Human Resources Technology Holdings Limited shows revenue growth but faces significant profitability challenges and cash flow strains. The balance sheet displays moderate leverage, yet negative net income impacts overall financial health. Despite some improvement in cash flow management, persistent operational inefficiencies and negative earnings highlight the need for strategic improvements.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.60B	5.47B	4.47B	3.64B	4.74B	2.83B
Gross Profit	446.12M	498.83M	422.50M	184.70M	251.79M	270.86M
EBITDA	159.65M	140.40M	143.47M	73.59M	174.99M	236.04M
Net Income	-51.75M	-70.97M	41.05M	-7.30M	101.67M	182.62M
Balance Sheet
Total Assets	2.08B	2.65B	2.29B	2.13B	1.99B	1.77B
Cash, Cash Equivalents and Short-Term Investments	407.72M	442.15M	346.09M	474.56M	852.65M	1.15B
Total Debt	262.12M	490.17M	203.45M	137.72M	82.89M	58.56M
Total Liabilities	827.80M	1.23B	786.83M	678.29M	715.19M	533.86M
Stockholders Equity	1.24B	1.20B	1.28B	1.25B	1.25B	1.23B
Cash Flow
Free Cash Flow	-191.90M	-114.61M	-158.47M	105.29M	-126.76M	146.04M
Operating Cash Flow	-187.42M	-106.00M	-151.89M	118.91M	-89.96M	155.61M
Investing Cash Flow	291.27M	28.27M	38.78M	-328.11M	-126.16M	-200.22M
Financing Cash Flow	15.73M	190.06M	43.22M	-91.34M	-108.93M	-16.67M

Renrui Human Resources Technology Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.98
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6919, the sentiment is Positive. The current price of 3.98 is below the 20-day moving average (MA) of 4.11, below the 50-day MA of 4.36, and below the 200-day MA of 4.30, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 67.96 is Neutral, neither overbought nor oversold. The STOCH value of 97.14 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
2180	73 Outperform	HK$1.11B	7.31	11.29%	36.73%	17.49%	9.67%
6100	72 Outperform	HK$1.91B	12.39	―	―	-10.48%	30250.00%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1463	52 Neutral	HK$718.56M	-2.15	-89.45%	―	12.16%	-16700.00%
1645	48 Neutral	HK$2.07B	-107.31	-6.34%	―	-2.88%	44.39%
6919	46 Neutral	HK$685.64M	-11.88	-4.09%	2.26%	14.29%	-200.37%
0711	45 Neutral	HK$792.24M	15.52	2.28%	1.93%	0.97%	―