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. More Details


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

8319IndustryMarket
7 Day1.9%-3.0%2.2%
30 Day12.4%5.6%8.4%
90 Day4.8%10.7%15.6%
1 Year41.7%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 Yearn/a41.3%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

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

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

NamePositionTenureCompensationOwnership
Wai Kwok Lau
CEO, Compliance Officer & Executive Director4.83yrsHK$2.77m12.5%
HK$ 10.9m
Tsz Yan Lau
General Sales Manager of Outside Sales Department & Executive Director4.83yrsHK$1.34mno data
Cheuk Wah So
General Sales Manager of Outside Sales Department & Executive Director4.83yrsHK$1.09mno data
Siu Sum Chu
Non-Executive Director4.83yrsHK$19.00k28.36%
HK$ 24.7m
Chu Kee Wong
Chairman4.83yrsHK$169.00k6.66%
HK$ 5.8m
Kin Mei Chan
Non-Executive Director5.17yrsHK$169.00k0.84%
HK$ 732.5k
Yu Chiu Au
Independent Non-Executive Director4.83yrsHK$154.00kno data
Fuk Wing Chung
Independent Non-Executive Director4.83yrsHK$154.00kno data
Man Fu Ko
Independent Non-Executive Director4.83yrsHK$154.00kno data
Wai Sing Mak
Independent Non-Executive Director4.83yrsHK$154.00kno 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

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 serve...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/16 10:24
End of Day Share Price2021/01/15 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


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.