SEHK:8319

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Expert Systems Holdings

Executive Summary

Expert Systems Holdings Limited, an investment holding company, provides information technology (IT) infrastructure solutions in Hong Kong and Macau.


Snowflake Analysis

Flawless balance sheet and fair value.

Share Price & News

How has Expert Systems Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 8319 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.8%

8319

4.5%

HK IT

2.7%

HK Market


1 Year Return

-23.3%

8319

-9.7%

HK IT

-6.5%

HK Market

Return vs Industry: 8319 underperformed the Hong Kong IT industry which returned -9.7% over the past year.

Return vs Market: 8319 underperformed the Hong Kong Market which returned -6.5% over the past year.


Shareholder returns

8319IndustryMarket
7 Day-2.8%4.5%2.7%
30 Day19.0%3.7%-0.7%
90 Day-18.8%-4.1%-5.3%
1 Year-19.9%-23.3%-8.0%-9.7%-3.3%-6.5%
3 Year-64.8%-66.3%-27.8%-31.2%-1.6%-11.7%
5 Yearn/a-15.6%-25.8%-11.4%-25.3%

Price Volatility Vs. Market

How volatile is Expert Systems Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Expert Systems Holdings undervalued compared to its fair value and its price relative to the market?

4.9x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 8319 (HK$0.07) is trading above our estimate of fair value (HK$0.05)

Significantly Below Fair Value: 8319 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 8319 is good value based on its PE Ratio (4.9x) compared to the IT industry average (14.3x).

PE vs Market: 8319 is good value based on its PE Ratio (4.9x) compared to the Hong Kong market (9.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 8319's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 8319 is good value based on its PB Ratio (0.6x) compared to the HK IT industry average (0.9x).


Next Steps

Future Growth

How is Expert Systems Holdings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

10.5%

Forecasted Software industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Expert Systems Holdings has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Expert Systems Holdings performed over the past 5 years?

9.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8319 has high quality earnings.

Growing Profit Margin: 8319's current net profit margins (2.4%) are lower than last year (2.7%).


Past Earnings Growth Analysis

Earnings Trend: 8319's earnings have grown by 9.2% per year over the past 5 years.

Accelerating Growth: 8319's earnings growth over the past year (1.3%) is below its 5-year average (9.2% per year).

Earnings vs Industry: 8319 earnings growth over the past year (1.3%) underperformed the IT industry 5.5%.


Return on Equity

High ROE: 8319's Return on Equity (11.6%) is considered low.


Next Steps

Financial Health

How is Expert Systems Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 8319's short term assets (HK$187.9M) exceed its short term liabilities (HK$96.2M).

Long Term Liabilities: 8319's short term assets (HK$187.9M) exceed its long term liabilities (HK$7.1M).


Debt to Equity History and Analysis

Debt Level: 8319 is debt free.

Reducing Debt: 8319 has no debt compared to 5 years ago when its debt to equity ratio was 5.2%.

Debt Coverage: 8319 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 8319 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Expert Systems Holdings's current dividend yield, its reliability and sustainability?

6.09%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 8319's dividend (6.09%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.5%).

High Dividend: 8319's dividend (6.09%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.2%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether 8319's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 8319's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (29.8%), 8319'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

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

4.3yrs

Average board tenure


CEO

Andy Lau (49yo)

4.25yrs

Tenure

HK$2,520,000

Compensation

Mr. Wai Kwok Lau, also known as Andy, has been the Chief Executive Officer of Expert Systems Holdings Limited since March 15, 2016 and has been its Compliance Officer since March 15, 2016 and Executive Dir ...


CEO Compensation Analysis

Compensation vs Market: Andy's total compensation ($USD325.12K) is above average for companies of similar size in the Hong Kong market ($USD226.43K).

Compensation vs Earnings: Andy's compensation has increased by more than 20% in the past year.


Board Members

NamePositionTenureCompensationOwnership
Wai Kwok Lau
CEO, Compliance Officer & Executive Director4.25yrsHK$2.52m12.5% HK$6.7m
Tsz Yan Lau
General Sales Manager of Outside Sales Department & Executive Director4.25yrsHK$1.14mno data
Cheuk Wah So
General Sales Manager of Outside Sales Department & Executive Director4.25yrsHK$977.00kno data
Siu Sum Chu
Non-Executive Director4.25yrsno data28.36% HK$15.2m
Chu Kee Wong
Chairman4.25yrsHK$150.00k6.41% HK$3.4m
Kin Mei Chan
Non-Executive Director4.58yrsHK$150.00k0.84% HK$450.2k
Yu Chiu Au
Independent Non-Executive Director4.25yrsHK$150.00kno data
Fuk Wing Chung
Independent Non-Executive Director4.25yrsHK$150.00kno data
Man Fu Ko
Independent Non-Executive Director4.25yrsHK$150.00kno data
Wai Sing Mak
Independent Non-Executive Director4.25yrsHK$150.00kno data

4.3yrs

Average Tenure

58yo

Average Age

Experienced Board: 8319'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

Company Information

Expert Systems Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Expert Systems Holdings Limited
  • Ticker: 8319
  • Exchange: SEHK
  • Founded: 1985
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: HK$53.600m
  • Shares outstanding: 800.00m
  • Website: https://www.expertsystems.com.hk

Number of Employees


Location

  • Expert Systems Holdings Limited
  • Yen Sheng Centre
  • 22nd Floor
  • Kwun Tong
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
8319SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDApr 2016

Biography

Expert Systems Holdings Limited, an investment holding company, provides information technology (IT) infrastructure solutions in Hong Kong and Macau. The company’s IT infrastructure solutions include server and storage consolidation, virtualization, backup and recovery, disaster recovery, software-defined data center, hyper-convergence, confidential mail, email and file archive, enterprise content management and collaboration, and high performance computing services; and directory and email services setup, upgrade, and migration services. Its IT infrastructure solutions also comprise networking and wireless infrastructure and management, campus and enterprise networking, unified communication, network optimization, and software-defined networking and Wan services, as well as PC migration, edge management, virtual desktop infrastructure, enterprise mobility management, point of sales, managed printing, and passbook printing services. In addition, the company offers private and public cloud, hybrid and multiple cloud, cross cloud architecture, and hybrid cloud extension services; and IoT, data, cloud, Web and email, endpoint and mobile, system, and network security services, as well as finance leasing services. It serves medium-sized, multinational, and local business enterprises in various industries, such as banking, finance, insurance, telecommunications, information technology, and media; fashion, jewelry, and accessories; property and construction; and entertainment, hotel, and travel, as well as government, education institutions, and NGOs. Expert Systems Holdings Limited was founded in 1985 and is headquartered in Kwun Tong, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/03 13:37
End of Day Share Price2020/06/02 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


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.