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

• Market Cap: HK$612.17M
• Dividend Yield: 2.25%
• Average Volume (3M): 20.86K
• 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: 91
• Industry: Staffing & Employment Services
• EPS (TTM): -0.67
• Shares Outstanding: 156,699,870
• 10 Day Avg. Volume: 10,260
• 30 Day Avg. Volume: 20,856
• PEG Ratio: 0.03
• Price to Book (P/B): 0.46
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.77
• 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: HK$4.00
• Price Target Upside: 0.25% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 48 Neutral
• Price Target: HK$4.00 ▲(0.25%Upside)

The overall score reflects significant financial performance challenges, including negative earnings and cash flow strains. Technical analysis offers mixed signals without strong momentum, and valuation metrics are poor due to negative earnings.

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 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

Renrui Human Resources Technology Holdings Limited shows revenue growth but faces significant issues in profitability and cash flows. Negative net income and free cash flow highlight operational inefficiencies and liquidity concerns, requiring improvement.

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
EBITDA	140.40M	143.47M	73.59M	174.99M	236.04M
Net Income	-70.97M	41.05M	6.86M	101.67M	182.62M
Balance Sheet
Total Assets	2.65B	2.29B	2.13B	1.99B	1.77B
Cash, Cash Equivalents and Short-Term Investments	442.15M	346.09M	474.56M	852.65M	1.15B
Total Debt	490.17M	203.45M	137.72M	82.89M	58.56M
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: Positive
• Last Price: 3.99
• 50DMA: Positive
• 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:6919, the sentiment is Positive. The current price of 3.99 is above the 20-day moving average (MA) of 3.84, above the 50-day MA of 3.89, and below the 200-day MA of 4.13, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 59.87 is Neutral, neither overbought nor oversold. The STOCH value of 91.85 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	78 Outperform	HK$998.10M	6.90	10.74%	6.44%	16.07%	0.77%
6100	68 Neutral	HK$1.88B	12.45	4.48%	―	-10.48%	30250.00%
Sector *	65 Neutral	$10.85B	15.55	5.22%	1.89%	3.09%	-26.84%
0711	56 Neutral	HK$803.75M	―	-11.69%	5.01%	20.89%	-296.52%
6919	48 Neutral	HK$612.17M	10.94	-5.73%	2.25%	20.23%	-275.42%
1463	46 Neutral	HK$709.94M	357.14	-11.77%	―	2.77%	-322.58%
1645	41 Neutral	HK$563.98M	―	-13.40%	―	4.25%	-4.86%

Renrui Human Resources Technology Holdings Limited Corporate Events

Renrui Human Resources Announces Board and Committee Changes

Renrui Human Resources Technology Holdings Limited announced changes in its board and committee composition effective from July 8, 2025. Mr. Chen Rui resigned as a non-executive director and chairman of the Investment Committee due to LC Fund V, L.P. ceasing to be a substantial shareholder. Ms. Wang Xinjie, with a strong background in investment and corporate development, has been appointed as a non-executive director. Additionally, Ms. Chan Mei Bo Mabel and Mr. Leung Ming Shu have been assigned new roles within the Investment Committee, potentially impacting the company’s strategic direction and governance.

Renrui Human Resources Announces Board Composition and Roles

Renrui Human Resources Technology Holdings Limited has announced the composition of its board of directors and their respective roles within various board committees. This announcement may impact the company’s governance and strategic direction, potentially influencing its market positioning and stakeholder relationships.

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.