Redsun Services Upgraded (HKG:1971) Target $8.80

Redsun Services Upgraded (HKG:1971) Target $8.80

Redsun Services Upgraded (“Redsun Services” or the “Group”; stock code: 1971), a fast-growing comprehensive community services provider focused on the Yangtze River Delta, has earned CCB International’s optimistic view accolade owing to a recent M&A that will strengthen its Central China and Non-Residential Exposure.

The Group has also been given a “Buy” rating by CCB International with a target price at HK$8.8.

On 31 December 2020, Redsun Services announced it would be acquiring an 80% stake in Wuhan Huidehang Elite Property Service Co. (Wuhan Huidehang) for RMB216 million, implying 13x 2021 forward P/E.

In 2018, 2019 and the first 10 months of 2020, Wuhan Huidehang recorded RMB54 million, RMB55 million and RMB61 million in revenue and RMB11 million, RMB12 million and RMB15 million in net profit respectively. Forecast in 2021, 2022 and 2023, revenue will be RMB86 million, RMB99 million and RMB114 million, while guaranteed net profit will be RMB21 million, RMB24 million and RMB27 million respectively.

For the first 10 months of 2020, gross profit margin and net margin stood at a decent level of c.38% and 24% respectively. Wuhan Huidehang has 29 projects under management (27 in Wuhan alone), equivalent to 1.77m sqm GFA, with 42%, 24%, 20% and 14% in office, residential, public and retail properties respectively, which is enough to considerably strengthen Redsun Services’ exposure in Central China and supplement its non-residential exposure.

Also, the recent share increase of the Group’s major shareholder Mr. Zeng Huansha supports CCB International’s contention that the Group’s shares are undervalued. In the four consecutive trading days from 18 to 23 December 2020, Redsun Services’ major shareholder bought shares on the secondary market in a total consideration of HK$9.71 million, bringing his shareholding to 72.77%, a 0.48 percentage points increase.

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 endeavor to continue to “provide customers with high-quality services with sincerity” to 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 25th among the 2020 Top 100 Property Management Companies in terms of overall strength. Also, it has been selected as a constituent stock of the FTSE Global Micro Cap ex US Index by FTSE Russell in December 2020.

建銀國際看好弘陽服務新併購加強華中地區和非住宅的覆盖
發表「優於大市」研究報告 目標價為8.80港元

香港, 2021年1月5日 – (亞太商訊) – 深耕長三角地區、增長迅速的綜合社區服務供應商弘陽服務集團有限公司(「弘陽服務」或「集團」,股份代號1971)獲建銀國際看好其新併購項目將有助加強華中地區和非住宅的的覆盖,發表「優於大市」的研究報告,目標價為8.80港元。

2020年12月31日,弘陽服務宣佈將以人民幣2.16億元收購武漢匯得行精英物業服務有限公司(武漢匯得行)80%的股權,相當於2021年預測市盈率13倍。於2018、2019、及2020年首10個月,武漢匯得行實現營業收入達人民幣5,400萬元、人民幣5,500萬元及人民幣6,100萬元;淨利潤達人民幣1,100萬元、人民幣1,200萬元及人民幣1,500萬元;預測在2021、2022及2023年,營業收入將為人民幣8,600萬元、人民幣9,900萬元及人民幣1,140萬元,武漢匯得行並承諾淨利潤達人民幣2,100萬元、人民幣2,400萬元及人民幣2,700萬元。在2020年首10個月,毛利率及淨利率分別達38%及24%的可觀水平。武漢匯得行合共管理29個項目(武漢佔27個),相當於管理面積177萬平方米,其中辦公室、住宅、公共及零售物業分別佔42%、24%、20%及14%,有助增強弘陽服務在華中地區及非住宅項目的覆蓋。

此外,建銀國際認為弘陽服務大股東曾煥沙近期增持股份,正好支持公司股價被低估的觀點。於2020年12月18日至2020年12月23日的四個交易日中,弘陽服務大股東於市場共斥資約971萬港元,使其持股量增加0.48個百分點達72.77%。

有關弘陽服務集團有限公司
弘陽服務於2003年在南京成立,是一家深耕長三角地區、增長迅速的綜合社區服務供應商,以實現「讓生活更有溫度」為願景,一直奉行「以誠待客,卓越服務」服務客戶。集團在江蘇省物業管理市場建立區域領先地位,並在全國範圍內得到認可。自2017年以來,集團連續四年被中指院評為物業服務百強企業之一,並於2020年物業服務百強企業中排名第25位,另於同年12月獲富時羅素納入富時全球微型股指數。
The following two tabs change content below.
S. Jack Heffernan Ph.D. Funds Manager at HEFFX holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

Latest posts by S. Jack Heffernan Ph.D (see all)