SEHK:8353

Stock Analysis Report

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Executive Summary

Anacle Systems Limited engages in the software development, and provision of enterprise application software and energy management solutions in Singapore, Malaysia, the People's Republic of China, and internationally. More Details


Snowflake Analysis

Flawless balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 8353 is more volatile than 90% of Hong Kong stocks over the past 3 months, typically moving +/- 19% a week.

Volatility Over Time: 8353's weekly volatility (19%) has been stable over the past year, but is still higher than 75% of Hong Kong stocks.


Market Performance


7 Day Return

6.4%

8353

4.1%

HK Software

2.2%

HK Market


1 Year Return

13.7%

8353

167.4%

HK Software

7.2%

HK Market

Return vs Industry: 8353 underperformed the Hong Kong Software industry which returned 167.4% over the past year.

Return vs Market: 8353 exceeded the Hong Kong Market which returned 7.2% over the past year.


Shareholder returns

8353IndustryMarket
7 Day6.4%4.1%2.2%
30 Day66.0%17.8%8.4%
90 Day59.6%43.7%15.6%
1 Year13.7%13.7%168.6%167.4%11.4%7.2%
3 Year-36.2%-36.2%224.9%221.3%-3.4%-13.5%
5 Yearn/a366.2%355.5%65.4%37.4%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Anacle Systems 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: 8353 (HK$0.42) is trading below our estimate of fair value (HK$10.52)

Significantly Below Fair Value: 8353 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 8353 is good value based on its PE Ratio (11.8x) compared to the HK Software industry average (22.2x).

PE vs Market: 8353 is poor value based on its PE Ratio (11.8x) compared to the Hong Kong market (11.5x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 8353's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 8353 is overvalued based on its PB Ratio (2.1x) compared to the HK Software industry average (0.9x).


Next Steps

Future Growth

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

30.1%

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 Anacle Systems 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 Anacle Systems performed over the past 5 years?

-34.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8353 has a large one-off loss of SGD993.3K impacting its November 30 2020 financial results.

Growing Profit Margin: 8353 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 8353 has become profitable over the past 5 years, growing earnings by -34.7% per year.

Accelerating Growth: 8353 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 8353 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Software industry (-7.4%).


Return on Equity

High ROE: 8353's Return on Equity (16.8%) is considered low.


Next Steps

Financial Health

How is Anacle Systems's financial position?


Financial Position Analysis

Short Term Liabilities: 8353's short term assets (SGD14.8M) exceed its short term liabilities (SGD3.6M).

Long Term Liabilities: 8353's short term assets (SGD14.8M) exceed its long term liabilities (SGD1.8M).


Debt to Equity History and Analysis

Debt Level: 8353 is debt free.

Reducing Debt: 8353 has no debt compared to 5 years ago when its debt to equity ratio was 0.9%.

Debt Coverage: 8353 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 8353 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 8353's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 8353'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 8353's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 8353's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 8353's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

5.4yrs

Average board tenure


CEO

Alex Lau (47 yo)

14.92yrs

Tenure

S$312,148

Compensation

Mr. E. Choon Lau, also known as Alex, is Co-founder of Anacle Systems Limited. Mr. Lau has been Chief Executive Officer of Anacle Systems Limited since February 21, 2006 and served as its Chief Technology ...


CEO Compensation Analysis

Compensation vs Market: Alex's total compensation ($USD234.84K) is about average for companies of similar size in the Hong Kong market ($USD229.46K).

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


Board Members

NamePositionTenureCompensationOwnership
E. Choon Lau
Co-Founder14.92yrsS$312.15k11.42%
SGD 18.9m
Swee Heng Ong
Co-Founder14.92yrsS$271.51k5.7%
SGD 9.4m
Yoke Sin Chong
Non-Executive Director0.25yrno datano data
Suan Hiang Lee
Chairman6.58yrsS$25.00kno data
Alwi Bin Abdul Hafiz
Independent Non-Executive Director4.17yrsS$25.00kno data
Man Wai Li
Independent Non-Executive Director4.17yrsS$25.00kno data
Poh Kam Wong
Non-Executive Director13.25yrsS$25.00kno data
Elango Subramanian
Independent Non-Executive Director4.17yrsS$25.00kno data

5.4yrs

Average Tenure

60.5yo

Average Age

Experienced Board: 8353's board of directors are considered experienced (5.4 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

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


Key Information

  • Name: Anacle Systems Limited
  • Ticker: 8353
  • Exchange: SEHK
  • Founded: 2006
  • Industry: Application Software
  • Sector: Software
  • Market Cap: HK$165.651m
  • Shares outstanding: 399.16m
  • Website: https://www.anacle.com

Number of Employees


Location

  • Anacle Systems Limited
  • 3 Fusionopolis Way
  • No. 14-21 Symbiosis
  • Singapore
  • 138633
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
8353SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDDec 2016

Biography

Anacle Systems Limited engages in the software development, and provision of enterprise application software and energy management solutions in Singapore, Malaysia, the People's Republic of China, and inte...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/17 10:11
End of Day Share Price2021/01/15 00:00
Earnings2020/11/30
Annual Earnings2020/05/31


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.