HONG KONG, Aug 24, 2021 – (ACN Newswire via SEAPRWire.com) – Redsun Services Group Limited (“Redsun Services” or the “Group”) (stock code: 1971.HK), a fast growing comprehensive community services provider focusing on the Yangtze River Delta, is given “Buy” rating by CEB International with a target price of HK$6.0.
CEB International considers that the net profit of Redsun Services raised by 60.4% year-on-year to RMB 37.4 million in the first half of 2021, which is in line with their expectation. The main reasons include: 1) the increase of GFA under management; and 2) community value-added services grew strongly.
By the end of June this year, the total GFA under management of the group had reached 34.36 million sq.m., an increase of 83.5% year-on-year. Among them, third-party contribution of GFA under management accounted for 60%, an increase of 22.2 percentage points year-on-year.
By business segment, the revenue from property management services was RMB350 million, an increase of 55.2% year-on-year; revenue from value-added services to non-property owners was RMB84.8 million, an increase of 22.9% year-on-year; and revenue from community value-added services surged 230% year-on-year to RMB93.8 million. The strong growth of community value-added services was mainly due to the Group’s promotion of full-cycle and diversified services. Among them, the revenue from common area value-added services increased by 382%, revenue from property decoration service increased by 538% and the revenue from community convenience service increased by 181% year-on-year.
In addition, the gross profit margin of the Group widened 2.6ppt to 28.9% thanks to the increased revenue proportion from community value-added service with higher gross profit margin, and the scale efficiency, which slightly increased the gross profit margin of property management services by 0.2 percentage points.
About Redsun Services Group Limited
Established in Nanjing in 2003, Redsun Services Group Limited is a fast-growing comprehensive community service provider focusing on the Yangtze River Delta. With a vision of “making lives warmer,” the Group has provided and endeavors to continue to “provide customers with high-quality services with sincerity” to better serve its customers. The Group has established the regional leading position in the property management market of Jiangsu province and is well-recognised nationwide. The Group was recognized as one of the Top 100 Property Management Companies by CIA for four consecutive years since 2017 and ranked 19th among the 2021 Top 100 Property Management Companies in terms of overall strength. In December 2020, the Group was included by FTSE Russell in the FTSE Global Micro-Cap Index. In 2021, the Group was selected as a constituent of the Hang Seng Property Service and Management Index.
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