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1996

Redsun Properties Group SZSC:1996 Stock Report

Last Price

HK$1.05

Market Cap

HK$3.5b

7D

-17.3%

1Y

-57.5%

Updated

18 Sep, 2022

Data

Company Financials +
1996 fundamental analysis
Snowflake Score
Valuation4/6
Future Growth4/6
Past Performance0/6
Financial Health3/6
Dividends0/6

1996 Stock Overview

Redsun Properties Group Limited, together with its subsidiaries, engages in the property development business in the People’s Republic of China.

Redsun Properties Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Redsun Properties Group
Historical stock prices
Current Share PriceHK$1.05
52 Week HighHK$2.85
52 Week LowHK$1.04
Beta-0.24
1 Month Change-7.90%
3 Month Change-57.83%
1 Year Change-57.49%
3 Year Change-57.66%
5 Year Changen/a
Change since IPO-61.11%

Recent News & Updates

Shareholder Returns

1996HK Real EstateHK Market
7D-17.3%-0.6%-2.9%
1Y-57.5%-28.4%-24.2%

Return vs Industry: 1996 underperformed the Hong Kong Real Estate industry which returned -28.4% over the past year.

Return vs Market: 1996 underperformed the Hong Kong Market which returned -24.2% over the past year.

Price Volatility

Is 1996's price volatile compared to industry and market?
1996 volatility
1996 Average Weekly Movement9.1%
Real Estate Industry Average Movement5.6%
Market Average Movement6.4%
10% most volatile stocks in HK Market12.9%
10% least volatile stocks in HK Market3.0%

Stable Share Price: 1996 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: 1996's weekly volatility (9%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19992,787Huansha Zenghttps://www.rsunproperty.hk

Redsun Properties Group Limited, together with its subsidiaries, engages in the property development business in the People’s Republic of China. It operates through three segments: Property Development, Commercial Property Investment and Operations, and Hotel Operations. The company focuses on the development of residential properties; and development, operation, and management of commercial and other properties.

Redsun Properties Group Fundamentals Summary

How do Redsun Properties Group's earnings and revenue compare to its market cap?
1996 fundamental statistics
Market CapHK$3.51b
Earnings (TTM)-HK$207.16m
Revenue (TTM)HK$29.54b

0.1x

P/S Ratio

-16.9x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
1996 income statement (TTM)
RevenueCN¥26.31b
Cost of RevenueCN¥22.14b
Gross ProfitCN¥4.18b
Other ExpensesCN¥4.36b
Earnings-CN¥184.50m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.055
Gross Margin15.87%
Net Profit Margin-0.70%
Debt/Equity Ratio90.6%

How did 1996 perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is 1996 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales 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 1996?

Other financial metrics that can be useful for relative valuation.

1996 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/Revenue1.5x
Enterprise Value/EBITDA16.3x
PEG Ration/a

Price to Sales Ratio vs Peers

How does 1996's PS Ratio compare to its peers?

1996 PS Ratio vs Peers
The above table shows the PS ratio for 1996 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average0.3x
185 Zensun Enterprises
0.3xn/aHK$3.5b
978 China Merchants Land
0.08xn/aHK$2.9b
798 China Electronics Optics Valley Union Holding
0.7xn/aHK$3.3b
1966 China SCE Group Holdings
0.07x2.4%HK$2.7b
1996 Redsun Properties Group
0.1x13.4%HK$3.5b

Price-To-Sales vs Peers: 1996 is good value based on its Price-To-Sales Ratio (0.1x) compared to the peer average (0.3x).


Price to Earnings Ratio vs Industry

How does 1996's PE Ratio compare vs other companies in the HK Real Estate Industry?

Price-To-Sales vs Industry: 1996 is good value based on its Price-To-Sales Ratio (0.1x) compared to the Hong Kong Real Estate industry average (0.9x)


Price to Sales Ratio vs Fair Ratio

What is 1996's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

1996 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.1x
Fair PS Ratio0.4x

Price-To-Sales vs Fair Ratio: 1996 is good value based on its Price-To-Sales Ratio (0.1x) compared to the estimated Fair Price-To-Sales Ratio (0.4x).


Share Price vs Fair Value

What is the Fair Price of 1996 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1996 (HK$1.05) is trading below our estimate of fair value (HK$1.09)

Significantly Below Fair Value: 1996 is trading below fair value, but not by a significant amount.


Analyst Price Targets

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

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.


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Future Growth

How is Redsun Properties Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

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


96.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1996 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.6%).

Earnings vs Market: 1996 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: 1996 is expected to become profitable in the next 3 years.

Revenue vs Market: 1996's revenue (13.4% per year) is forecast to grow faster than the Hong Kong market (9.9% per year).

High Growth Revenue: 1996's revenue (13.4% per year) is forecast to grow slower 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


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Past Performance

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

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-7.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 1996 is currently unprofitable.

Growing Profit Margin: 1996 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 1996 is unprofitable, and losses have increased over the past 5 years at a rate of 7.3% per year.

Accelerating Growth: Unable to compare 1996's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 1996 is unprofitable, making it difficult to compare its past year earnings growth to the Real Estate industry (-10.4%).


Return on Equity

High ROE: 1996 has a negative Return on Equity (1.54%), as it is currently unprofitable.


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Financial Health

How is Redsun Properties Group's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 1996's short term assets (CN¥90.2B) exceed its short term liabilities (CN¥71.3B).

Long Term Liabilities: 1996's short term assets (CN¥90.2B) exceed its long term liabilities (CN¥18.1B).


Debt to Equity History and Analysis

Debt Level: 1996's net debt to equity ratio (58.1%) is considered high.

Reducing Debt: 1996's debt to equity ratio has reduced from 151.9% to 90.6% over the past 5 years.

Debt Coverage: 1996's debt is not well covered by operating cash flow (1.3%).

Interest Coverage: 1996's interest payments on its debt are not well covered by EBIT (2x coverage).


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate 1996's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 1996's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 1996's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1996's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: 1996 is not paying a notable dividend for the Hong Kong market.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as 1996 has not reported any payouts.


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Management

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

2.1yrs

Average management tenure


CEO

Huansha Zeng (54 yo)

0.25yr

Tenure

CN¥1,129,000

Compensation

Mr. Huansha Zeng has been Chairman and Executive Director of Redsun Properties Group Limited since December 21, 2017 and also serves as Chief Executive Officer from June 30, 2022 and was re-designated as t...


CEO Compensation Analysis

Compensation vs Market: Huansha's total compensation ($USD161.50K) is below average for companies of similar size in the Hong Kong market ($USD423.99K).

Compensation vs Earnings: Huansha's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: 1996's management team is considered experienced (2.1 years average tenure).


Board Members

Experienced Board: 1996's board of directors are considered experienced (4.3 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.


Ownership Breakdown

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


Top Shareholders

Top 10 shareholders own 72.92% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
71.88%
Hong Yang Group Company Limited
2,400,000,000CN¥2.5b0%no data
0.61%
BlackRock, Inc.
20,406,000CN¥21.4m-0.08%no data
0.31%
Dimensional Fund Advisors LP
10,312,914CN¥10.8m-0.1%no data
0.046%
State Street Global Advisors, Inc.
1,521,427CN¥1.6m0.66%no data
0.032%
Northern Trust Global Investments
1,073,000CN¥1.1m0%no data
0.016%
American Century Investment Management Inc
541,000CN¥568.1k0%no data
0.014%
BNY Mellon Asset Management
478,874CN¥502.8k-93.4%no data
0.012%
Schroder Investment Management Limited
410,000CN¥430.5k0%no data
0.001%
Invesco Great Wall Fund Management Co. Ltd
34,000CN¥35.7k0%no data
0.00009%
Dacheng Fund Management Company Limited
3,000CN¥3.2k0%no data

Company Information

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


Key Information

  • Name: Redsun Properties Group Limited
  • Ticker: 1996
  • Exchange: SZSC
  • Founded: 1999
  • Industry: Real Estate Development
  • Sector: Real Estate
  • Implied Market Cap: HK$3.506b
  • Shares outstanding: 3.34b
  • 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
0RJDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2018

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/18 00:00
End of Day Share Price2022/09/16 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.