Renrui Human Resources Technology Holdings (SEHK:6919) - Share price, News & Analysis

Q: What is the Fair Price of 6919 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

6919 (HK$5.71) is trading above our estimate of [[fair value]] (HK$5.16)

6919 fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	4/6
Past Performance	1/6
Financial Health	5/6
Dividends	2/6

6919 Stock Overview

Renrui Human Resources Technology Holdings Limited, an investment holding company, provides human resources services in China.

Rewards

Price-To-Earnings ratio (7.6x) is below the Hong Kong market (8.7x)

Earnings are forecast to grow 39.13% per year

Risk Analysis

High level of non-cash earnings

Dividend of 3.94% is not well covered by earnings

Profit margins (2.1%) are lower than last year (6.5%)

Renrui Human Resources Technology Holdings Competitors

ManpowerGroup Greater China

SEHK:2180

HK$2.0b

Omnibridge Holdings

SEHK:8462

HK$54.0m

KOS International Holdings

SEHK:8042

HK$48.0m

Hongcheng Environmental Technology

SEHK:2265

HK$700.0m

Price History & Performance

Summary of all time highs, changes and price drops for Renrui Human Resources Technology Holdings
Historical stock prices
Current Share Price	HK$5.71
52 Week High	HK$10.22
52 Week Low	HK$4.23
Beta	-0.34
1 Month Change	5.55%
3 Month Change	-5.15%
1 Year Change	-39.38%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-78.49%

Recent News & Updates

Jun 12

Renrui Human Resources Technology Holdings (HKG:6919) Is Paying Out Less In Dividends Than Last Year

Renrui Human Resources Technology Holdings Limited ( HKG:6919 ) is reducing its dividend to HK$0.24 on the 12th of...

May 12

Renrui Human Resources Technology Holdings' (HKG:6919) Dividend Will Be Reduced To HK$0.24

Renrui Human Resources Technology Holdings Limited ( HKG:6919 ) has announced it will be reducing its dividend payable...

Shareholder Returns

	6919	HK Professional Services	HK Market
7D	2.5%	2.4%	1.5%
1Y	-39.4%	-14.1%	-20.8%

Return vs Industry: 6919 underperformed the Hong Kong Professional Services industry which returned -16% over the past year.

Return vs Market: 6919 underperformed the Hong Kong Market which returned -20.6% over the past year.

Price Volatility

Is 6919's price volatile compared to industry and market?
6919 volatility
6919 Average Weekly Movement	5.8%
Professional Services Industry Average Movement	7.1%
Market Average Movement	6.5%
10% most volatile stocks in HK Market	12.8%
10% least volatile stocks in HK Market	3.2%

Stable Share Price: 6919 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 6919's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2010	1,135	Jianguo Zhang	https://www.renruihr.com

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.

Renrui Human Resources Technology Holdings Fundamentals Summary

How do Renrui Human Resources Technology Holdings's earnings and revenue compare to its market cap?
6919 fundamental statistics
Market Cap	HK$894.76m
Earnings (TTM)	HK$117.44m
Revenue (TTM)	HK$5.47b

7.6x

P/E Ratio

0.2x

P/S Ratio

Is 6919 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
6919 income statement (TTM)
Revenue	CN¥4.74b
Cost of Revenue	CN¥4.46b
Gross Profit	CN¥283.20m
Other Expenses	CN¥181.53m
Earnings	CN¥101.67m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Aug 22, 2022

Earnings per share (EPS)	0.65
Gross Margin	5.98%
Net Profit Margin	2.15%
Debt/Equity Ratio	0.4%

How did 6919 perform over the long term?

See historical performance and comparison

Dividends

3.9%

Current Dividend Yield

29%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 6919 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 6919?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 6919. This is calculated by dividing 6919's market cap by their current preferred multiple.
What is 6919's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	CN¥774.58m

6919 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	0.2x

Price to Earnings Ratio vs Peers

How does 6919's PE Ratio compare to its peers?

6919 PE Ratio vs Peers

The above table shows the PE ratio for 6919 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	6.6x
2180 ManpowerGroup Greater China	12.5x	n/a	HK$2.0b
8462 Omnibridge Holdings	4.7x	n/a	HK$54.0m
8042 KOS International Holdings	2.1x	n/a	HK$48.0m
2265 Hongcheng Environmental Technology	7.1x	n/a	HK$700.0m
6919 Renrui Human Resources Technology Holdings	7.6x	39.1%	HK$894.8m

Price-To-Earnings vs Peers: 6919 is expensive based on its Price-To-Earnings Ratio (7.6x) compared to the peer average (6.6x).

Price to Earnings Ratio vs Industry

How does 6919's PE Ratio compare vs other companies in the Asian Professional Services Industry?

Price-To-Earnings vs Industry: 6919 is expensive based on its Price-To-Earnings Ratio (7.6x) compared to the Hong Kong Professional Services industry average (7.6x)

Price to Earnings Ratio vs Fair Ratio

What is 6919's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

6919 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	7.6x
Fair PE Ratio	9.1x

Price-To-Earnings vs Fair Ratio: 6919 is good value based on its Price-To-Earnings Ratio (7.6x) compared to the estimated Fair Price-To-Earnings Ratio (9.1x).

Share Price vs Fair Value

What is the Fair Price of 6919 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6919 (HK$5.71) is trading above our estimate of fair value (HK$5.16)

Significantly Below Fair Value: 6919 is trading above our estimate of fair value.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

How is Renrui Human Resources Technology Holdings forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

39.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6919's forecast earnings growth (39.1% per year) is above the savings rate (1.6%).

Earnings vs Market: 6919's earnings (39.1% per year) are forecast to grow faster than the Hong Kong market (16.7% per year).

High Growth Earnings: 6919's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 6919's revenue (16.8% per year) is forecast to grow faster than the Hong Kong market (9.9% per year).

High Growth Revenue: 6919's revenue (16.8% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 6919's Return on Equity is forecast to be low in 3 years time (13.4%).

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Past Performance

How has Renrui Human Resources Technology Holdings performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

22.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 6919 has a high level of non-cash earnings.

Growing Profit Margin: 6919's current net profit margins (2.1%) are lower than last year (6.5%).

Past Earnings Growth Analysis

Earnings Trend: 6919 has become profitable over the past 5 years, growing earnings by 22.7% per year.

Accelerating Growth: 6919's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 6919 had negative earnings growth (-44.3%) over the past year, making it difficult to compare to the Professional Services industry average (15.3%).

Return on Equity

High ROE: 6919's Return on Equity (8%) is considered low.

Discover strong past performing companies

Financial Health

How is Renrui Human Resources Technology Holdings's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 6919's short term assets (CN¥1.7B) exceed its short term liabilities (CN¥657.6M).

Long Term Liabilities: 6919's short term assets (CN¥1.7B) exceed its long term liabilities (CN¥57.6M).

Debt to Equity History and Analysis

Debt Level: 6919 has more cash than its total debt.

Reducing Debt: 6919 had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: 6919's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 6919 earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is Renrui Human Resources Technology Holdings's current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

3.94%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 6919's dividend (3.94%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.84%).

High Dividend: 6919's dividend (3.94%) is low compared to the top 25% of dividend payers in the Hong Kong market (8.33%).

Stability and Growth of Payments

Stable Dividend: Too early to tell whether 6919's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 6919's dividend payments are increasing as they only just started paying a dividend.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (29.4%), 6919's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: 6919 is paying a dividend but the company has no free cash flows.

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Management

How experienced are the management team and are they aligned to shareholders interests?

3.4yrs

Average management tenure

CEO

Jianguo Zhang (58 yo)

no data

Tenure

Mr. Jianguo Zhang has been Executive Chairman and Executive Director of Renrui Human Resources Technology Holdings Limited since March 2019 and also serves as its Chief Executive Officer. Mr. Zhang had bee...

Leadership Team

Experienced Management: 6919's management team is considered experienced (3.4 years average tenure).

Board Members

Experienced Board: 6919's board of directors are considered experienced (4 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/08/17 00:00
End of Day Share Price	2022/08/17 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31