Executive Summary
Expert Systems Holdings Limited, an investment holding company, provides information technology (IT) infrastructure solutions in Hong Kong and Macau. More Details
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet and undervalued.
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 is more volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 11% a week.
Volatility Over Time: 8319's weekly volatility (11%) has been stable over the past year, but is still higher than 75% of Hong Kong stocks.
Market Performance
7 Day Return
1.9%
8319
-3.0%
HK IT
2.2%
HK Market
1 Year Return
36.3%
8319
12.3%
HK IT
7.2%
HK Market
Return vs Industry: 8319 exceeded the Hong Kong IT industry which returned 12.5% over the past year.
Return vs Market: 8319 exceeded the Hong Kong Market which returned 7.5% over the past year.
Shareholder returns
| 8319 | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.9% | -3.0% | 2.2% |
| 30 Day | 12.4% | 5.6% | 8.4% |
| 90 Day | 4.8% | 10.7% | 15.6% |
| 1 Year | 41.7%36.3% | 14.5%12.3% | 11.4%7.2% |
| 3 Year | -23.6%-29.7% | -10.9%-15.5% | -3.4%-13.5% |
| 5 Year | n/a | 41.3%26.4% | 65.4%37.4% |
Long-Term 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
2 weeks ago | Simply Wall St
Should We Be Excited About The Trends Of Returns At Expert Systems Holdings (HKG:8319)?1 month ago | Simply Wall St
Expert Systems Holdings Limited (HKG:8319) Insiders Increased Their Holdings1 month ago | Simply Wall St
Should You Rely On Expert Systems Holdings's (HKG:8319) Earnings Growth?Valuation
Is Expert Systems Holdings undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 8319 (HK$0.11) is trading below our estimate of fair value (HK$6.51)
Significantly Below Fair Value: 8319 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 8319 is good value based on its PE Ratio (5.6x) compared to the HK IT industry average (13.4x).
PE vs Market: 8319 is good value based on its PE Ratio (5.6x) compared to the Hong Kong market (11.5x).
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 (0.8x) compared to the HK IT industry average (1.2x).
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?
36.3%
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
- Examine whether Expert Systems Holdings is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
- Expert Systems Holdings competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Software industry.
Past Performance
How has Expert Systems Holdings performed over the past 5 years?
29.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 8319 has high quality earnings.
Growing Profit Margin: 8319's current net profit margins (3.1%) are higher than last year (2.4%).
Past Earnings Growth Analysis
Earnings Trend: 8319's earnings have grown significantly by 29.7% per year over the past 5 years.
Accelerating Growth: 8319's earnings growth over the past year (39.9%) exceeds its 5-year average (29.7% per year).
Earnings vs Industry: 8319 earnings growth over the past year (39.9%) exceeded the IT industry -7.6%.
Return on Equity
High ROE: 8319's Return on Equity (14.1%) 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$215.4M) exceed its short term liabilities (HK$112.2M).
Long Term Liabilities: 8319's short term assets (HK$215.4M) exceed its long term liabilities (HK$5.7M).
Debt to Equity History and Analysis
Debt Level: 8319 is debt free.
Reducing Debt: 8319 had no debt 5 years ago.
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?
4.13%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 8319's dividend (4.13%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.13%).
High Dividend: 8319's dividend (4.13%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.66%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, 8319 has been paying a dividend for less than 10 years.
Growing Dividend: 8319's dividend payments have increased, but the company has only paid a dividend for 2 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (23.2%), 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?
4.8yrs
Average board tenure
CEO
Andy Lau (50 yo)
4.83yrs
Tenure
HK$2,774,000
Compensation
Mr. Wai Kwok Lau, also known as Andy, has been the Chief Executive Officer of Expert Systems Holdings Limited since March 15, 2016 and has been its Compliance Officer since March 15, 2016 and Executive Dir...
CEO Compensation Analysis
Compensation vs Market: Andy's total compensation ($USD357.77K) is above average for companies of similar size in the Hong Kong market ($USD230.12K).
Compensation vs Earnings: Andy's compensation has been consistent with company performance over the past year.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, Compliance Officer & Executive Director | 4.83yrs | HK$2.77m | 12.5% HK$ 10.9m | |
| General Sales Manager of Outside Sales Department & Executive Director | 4.83yrs | HK$1.34m | no data | |
| General Sales Manager of Outside Sales Department & Executive Director | 4.83yrs | HK$1.09m | no data | |
| Non-Executive Director | 4.83yrs | HK$19.00k | 28.36% HK$ 24.7m | |
| Chairman | 4.83yrs | HK$169.00k | 6.66% HK$ 5.8m | |
| Non-Executive Director | 5.17yrs | HK$169.00k | 0.84% HK$ 732.5k | |
| Independent Non-Executive Director | 4.83yrs | HK$154.00k | no data | |
| Independent Non-Executive Director | 4.83yrs | HK$154.00k | no data | |
| Independent Non-Executive Director | 4.83yrs | HK$154.00k | no data | |
| Independent Non-Executive Director | 4.83yrs | HK$154.00k | no data |
4.8yrs
Average Tenure
59yo
Average Age
Experienced Board: 8319's board of directors are considered experienced (4.8 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.
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$87.200m
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 8319 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Ordinary Shares | HK | HKD | Apr 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 serve...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/16 10:24 |
| End of Day Share Price | 2021/01/15 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2020/03/31 |
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.