Expert Systems Holdings Ltd. (8319) AI Stock Analysis

• Market Cap: HK$89.16M
• Dividend Yield: 7.39%
• Average Volume (3M): 160.00K
• Price to Earnings (P/E): 6.3
• Beta (1Y): -0.10
• Revenue Growth: -8.25%
• EPS Growth: -14.22%
• Country: HK
• Employees: 1,004
• Sector: Technology
• Sector Strength: 69
• Industry: Information Technology Services
• EPS (TTM): 0.02
• Shares Outstanding: 803,280,000
• 10 Day Avg. Volume: 354,000
• 30 Day Avg. Volume: 160,000
• PEG Ratio: -0.22
• Price to Book (P/B): 0.49
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.40
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Expert Systems Holdings Ltd. exhibits strong financial performance and attractive valuation metrics, which are key strengths. However, technical analysis signals caution with bearish momentum indicators, suggesting short-term challenges. The stock's low P/E ratio and high dividend yield reinforce its appeal to value and income investors, but market sentiment remains a concern.

Expert Systems Holdings Ltd. Business Overview & Revenue Model

Company Description

Expert Systems Holdings Limited, an investment holding company, provides information technology (IT) infrastructure solutions services to enterprises and institutions in Hong Kong, China, Macau, and internationally. It offers infrastructure and cloud products, such as system/server/storage, next gen/HCI, high performance computing, software defined data center, middleware, and application software products; cyber security and networking products, including data and cloud security, endpoint security, and networking products; artificial intelligence, container orchestration, and devops products; and laptop/PC/workstation, printing/imaging, thin client, and mobility products. The company also provides IT life cycle, digital transformation, project management and deployment, maintenance and support, and consulting and application management services. Further, it offers IT infrastructure management services, including IT hardware maintenance, helpdesk, IT outsourcing, and workflow automation services. The company was founded in 1985 and is headquartered in Kwun Tong, Hong Kong.

How the Company Makes Money

Expert Systems Holdings Ltd. generates revenue primarily through the sale of IT infrastructure products and services. The company earns by providing customized technology solutions and consultancy services to businesses, leveraging partnerships with leading technology vendors. Their revenue streams are diversified across product sales, which include hardware and software, and services encompassing system integration, maintenance, and support. Key factors contributing to the company's earnings include its strategic partnerships with global IT brands, enabling it to offer a wide range of products and solutions tailored to meet the specific needs of its clients.

Expert Systems Holdings Ltd. Financial Statement Overview

Summary

Expert Systems Holdings Ltd. demonstrates strong growth and financial stability, with consistent revenue increases and effective cash flow management. The company's financial health is robust, but close attention to operational efficiency and leverage is advised to maintain this trajectory.

Income Statement

The company has shown consistent revenue growth, with a notable increase from 2020 to 2024. Gross profit margin and net profit margin are steady, reflecting efficient cost management, although EBIT and EBITDA margins have slightly decreased, indicating some pressure on operational efficiency.

Balance Sheet

The balance sheet is strong with a healthy equity ratio and negative net debt, showing robust liquidity. However, the debt-to-equity ratio has increased slightly over time, indicating a rise in leverage, which could pose risks if not managed carefully.

Cash Flow

Cash flow statements highlight a strong free cash flow, supported by positive operating cash flow trends. The free cash flow to net income ratio is positive, suggesting efficient conversion of income into cash, though there has been a decline in operating cash flow in the latest year.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
910.54M	990.96M	886.54M	682.19M	533.94M	467.29M
	Gross Profit
148.15M	152.67M	139.34M	104.95M	72.01M	58.38M
	EBIT
20.14M	23.10M	25.75M	25.33M	19.37M	12.00M
	EBITDA
25.40M	41.25M	46.04M	31.39M	27.64M	15.51M
	Net Income Common Stockholders
14.09M	15.37M	19.65M	15.22M	21.72M	10.70M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
87.22M	219.13M	197.40M	201.36M	154.13M	95.40M
	Total Assets
154.78M	506.25M	495.20M	539.76M	257.98M	220.38M
	Total Debt
4.05M	72.79M	74.80M	66.93M	5.85M	7.26M
	Net Debt
-83.18M	-146.12M	-121.99M	-91.53M	-146.26M	-88.14M
	Total Liabilities
93.13M	314.14M	309.85M	368.88M	135.98M	116.87M
	Stockholders Equity
61.09M	169.68M	163.96M	151.88M	122.00M	103.51M
Cash Flow		Free Cash Flow
33.10M	35.39M	56.30M	24.53M	63.38M	435.00K
	Operating Cash Flow
34.15M	36.69M	58.99M	25.89M	63.59M	1.02M
	Investing Cash Flow
7.91M	3.89M	-3.76M	-9.28M	-1.72M	166.00K
	Financing Cash Flow
-16.82M	-16.78M	-14.93M	-11.65M	-5.16M	-4.86M

Expert Systems Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.11
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8319, the sentiment is Positive. The current price of 0.11 is above the 20-day moving average (MA) of 0.10, above the 50-day MA of 0.11, and above the 200-day MA of 0.11, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 73.48 is Negative, neither overbought nor oversold. The STOCH value of 76.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8319.

Expert Systems Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8319	69 Neutral	HK$89.16M	6.34	8.45%	7.39%	-8.25%	-14.22%
1686	65 Neutral	HK$15.68B	16.28	19.23%	1.88%	12.91%	5.31%
Sector *	60 Neutral	$11.39B	10.52	-6.21%	2.95%	7.68%	-11.12%
1683	51 Neutral	HK$629.86M	106.67	-9.39%	―	-35.62%	-377.27%
8060	46 Neutral	HK$29.70M	―	-1.91%	―	0.60%	86.53%
8178	39 Underperform	HK$227.12M	―		―	―	―