SEHK:1996

Stock Analysis Report

Redsun Properties Group

Executive Summary

Redsun Properties Group Limited operates as a property company in the People’s Republic of China.

Snowflake

Fundamentals

Acceptable track record with mediocre balance sheet.

Share Price & News

How has Redsun Properties Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.8%

1996

-1.9%

HK Real Estate

-0.6%

HK Market


1 Year Return

-6.3%

1996

9.8%

HK Real Estate

0.9%

HK Market

Return vs Industry: 1996 underperformed the Hong Kong Real Estate industry which returned 9.8% over the past year.

Return vs Market: 1996 underperformed the Hong Kong Market which returned 0.9% over the past year.


Shareholder returns

1996IndustryMarket
7 Day0.8%-1.9%-0.6%
30 Day2.8%2.8%0.8%
90 Day-0.4%-8.9%-5.7%
1 Year-2.4%-6.3%13.9%9.8%4.6%0.9%
3 Yearn/a36.9%22.6%15.8%4.2%
5 Yearn/a58.3%32.8%17.8%-1.9%

Price Volatility Vs. Market

How volatile is Redsun Properties Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Redsun Properties Group undervalued compared to its fair value and its price relative to the market?

5.04x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1996 (HK$2.55) is trading above our estimate of fair value (HK$1.29)

Significantly Below Fair Value: 1996 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1996 is good value based on its PE Ratio (5x) compared to the Real Estate industry average (6.3x).

PE vs Market: 1996 is good value based on its PE Ratio (5x) compared to the Hong Kong market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1996's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1996 is overvalued based on its PB Ratio (0.6x) compared to the HK Real Estate industry average (0.5x).


Next Steps

Future Growth

How is Redsun Properties Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

3.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1996's forecast earnings growth (3.4% per year) is above the savings rate (2%).

Earnings vs Market: 1996's earnings (3.4% per year) are forecast to grow slower than the Hong Kong market (11.1% per year).

High Growth Earnings: 1996's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if 1996's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 1996's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 1996's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Redsun Properties Group performed over the past 5 years?

6.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 1996's earnings have grown by 6.9% per year over the past 5 years.

Accelerating Growth: 1996's earnings growth over the past year (25.1%) exceeds its 5-year average (6.9% per year).

Earnings vs Industry: 1996 earnings growth over the past year (25.1%) exceeded the Real Estate industry -12.8%.


Return on Equity

High ROE: 1996's Return on Equity (9.4%) is considered low.


Return on Assets

ROA vs Industry: 1996's Return on Assets is below or equal to the Real Estate industry average last year.


Return on Capital Employed

ROCE Improving: 1996's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Redsun Properties Group's financial position?


Financial Position Analysis

Short Term Liabilities: 1996's short term assets (CN¥69.3B) exceeds its short term liabilities (CN¥53.2B)

Long Term Liabilities: 1996's short term assets (69.3B) exceeds its long term liabilities (18.2B)


Debt to Equity History and Analysis

Debt Level: 1996's debt to equity ratio (188.5%) is considered high

Reducing Debt: Insufficient data to determine if 1996's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 1996's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 1996's interest payments on its debt are well covered by EBIT (3.7x coverage).


Balance Sheet

Inventory Level: 1996 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1996's debt is covered by short term assets (assets are 2.4x debt).


Next Steps

Dividend

What is Redsun Properties Group's current dividend yield, its reliability and sustainability?

3.98%

Current Dividend Yield


Dividend Yield vs Market

company4.0%marketbottom25%2.3%markettop25%6.2%industryaverage4.5%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 1996's dividend (3.98%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.28%).

High Dividend: 1996's dividend (3.98%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.22%).

Stable Dividend: Too early to tell whether 1996's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 1996's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (20.6%), 1996's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Redsun Properties Group's salary, the management and board of directors tenure and is there insider trading?

1.3yrs

Average management tenure


CEO

Jie He (55yo)

1.6yrs

Tenure

0

Mr. Jie He has been Chief Executive Officer and Executive Director of Redsun Properties Group Limited since March 15, 2018. In addition, Mr. He also serves as a director of the following subsidiaries of th ...


Management Age and Tenure

1.3yrs

Average Tenure

43.5yo

Average Age

Experienced Management: 1996's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Age and Tenure

1.5yrs

Average Tenure

51yo

Average Age

Experienced Board: 1996's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


Insider Trading

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


Ownership Breakdown


Management Team

  • Wai Pang Lui (45yo)

    VP & Executive Director

    • Tenure: 0.3yrs
  • Chunhua Ge (53yo)

    Vice Chief Executive Officer

    • Tenure: 1.6yrs
  • Jie Jia (35yo)

    Chief Financial Officer

    • Tenure: 1.6yrs
  • Lok Yim (32yo)

    Company Secretary

    • Tenure: 1.3yrs
  • Huansha Zeng (51yo)

    Chairman

    • Tenure: 1.8yrs
  • Jie He (55yo)

    CEO & Executive Director

    • Tenure: 1.6yrs
  • Guangping Shen (34yo)

    Financial Controller

    • Tenure: 0.9yrs
  • Li Yonggang (42yo)

    Joint Company Secretary

    • Tenure: 0.5yrs

Board Members

  • Po Fung Au Yeung (51yo)

    Independent Non-Executive Director

    • Tenure: 1.3yrs
  • John Leung (59yo)

    Independent Non-Executive Director

    • Tenure: 1.3yrs
  • Louis Lee (51yo)

    Independent Non-Executive Director

    • Tenure: 1.3yrs
  • Liang Zhang (45yo)

    Non-Executive Director

    • Tenure: 1.6yrs
  • Wai Pang Lui (45yo)

    VP & Executive Director

    • Tenure: 0.3yrs
  • Daqiang Jiang (42yo)

    Non-Executive Director

    • Tenure: 1.6yrs
  • Huansha Zeng (51yo)

    Chairman

    • Tenure: 1.8yrs
  • Jie He (55yo)

    CEO & Executive Director

    • Tenure: 1.6yrs

Company Information

Redsun Properties Group Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Redsun Properties Group Limited
  • Ticker: 1996
  • Exchange: SEHK
  • Founded: 1999
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Market Cap: HK$8.433b
  • Shares outstanding: 3.32b
  • Website: https://www.rsunproperty.hk

Number of Employees


Location

  • Redsun Properties Group Limited
  • Redsun Tower, Building 12, Phase 2
  • 6th Floor, Zhongjun Plaza
  • Shanghai
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1996SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJul 2018
1996SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJul 2018

Biography

Redsun Properties Group Limited operates as a property company in the People’s Republic of China. The company operates in three segments: Property Development, Commercial Property Investment and Operation, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 12:57
End of Day Share Price2019/10/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.