Expert Systems Holdings Ltd. (8319) AI Stock Analysis

• Market Cap: HK$99.61M
• Dividend Yield: 6.47%
• Average Volume (3M): 65.00K
• Price to Earnings (P/E): 7.1
• Beta (1Y): -0.10
• Revenue Growth: 3.21%
• EPS Growth: -12.00%
• Country: HK
• Employees: 1,004
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): <0.01
• Shares Outstanding: 803,280,000
• 10 Day Avg. Volume: 48,000
• 30 Day Avg. Volume: 65,000
• PEG Ratio: -0.69
• Price to Book (P/B): 0.48
• Price to Sales (P/S): 0.09
• P/FCF Ratio: 2.33
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: HK$0.15 ▲(26.67% Upside)

The stock's overall score is driven by strong technical indicators and attractive valuation metrics, suggesting potential upside. However, financial performance challenges, particularly in revenue growth and profitability, temper the overall outlook.

Positive Factors

Cash Generation

The positive growth in free cash flow suggests the company is enhancing its ability to generate cash, which is crucial for funding operations and investments.

Stable Equity

Stable equity and moderate leverage indicate a balanced financial structure, supporting long-term sustainability and resilience against market fluctuations.

Efficient Cash Utilization

A high free cash flow to net income ratio reflects efficient cash management, enabling the company to effectively reinvest in growth opportunities.

Negative Factors

Declining Revenue

Declining revenue indicates challenges in maintaining sales momentum, which could hinder long-term growth and market competitiveness.

Low Profitability Margins

Low profitability margins can limit the company's ability to reinvest in business development and withstand competitive pressures, affecting long-term viability.

Revenue Growth Challenges

Challenges in revenue growth and profitability can impede the company's capacity to scale operations and expand market share over time.

Expert Systems Holdings Ltd. Business Overview & Revenue Model

Company Description

Expert Systems Holdings Ltd. (8319) is a technology company specializing in artificial intelligence and advanced analytics solutions. The company operates primarily in the software development sector, focusing on providing innovative tools and services that enhance decision-making processes across various industries, including finance, healthcare, and logistics. Its core products include AI-driven data analytics platforms that empower businesses to optimize their operations and improve customer engagement.

How the Company Makes Money

Expert Systems Holdings Ltd. generates revenue through multiple streams, primarily by offering subscription-based access to its software platforms and services. The company charges clients for licensing its proprietary AI technology, which can be customized to meet specific industry needs. Additionally, Expert Systems Holdings earns income from consulting services, where it collaborates with businesses to implement AI solutions and optimize their data usage. Significant partnerships with key players in the technology and analytics sectors further boost the company’s revenue, as they enable cross-selling opportunities and enhance market reach.

Expert Systems Holdings Ltd. Financial Statement Overview

Summary

The company faces challenges with declining revenue and low profitability margins, impacting future growth. However, the balance sheet shows moderate leverage and stable equity, providing some financial stability. Cash flow metrics indicate improved cash generation, but the conversion of income to cash remains a concern.

Income Statement

The company shows a declining revenue trend with a negative growth rate of -1.08% in the latest year, indicating potential challenges in maintaining sales momentum. Gross profit margin is moderate at 16.74%, while net profit margin is low at 1.55%, suggesting limited profitability. EBIT and EBITDA margins are stable but not particularly strong, reflecting operational efficiency challenges.

Balance Sheet

The debt-to-equity ratio is moderate at 0.46, indicating a balanced approach to leveraging. Return on equity is relatively low at 7.90%, suggesting limited returns for shareholders. The equity ratio is not explicitly calculated, but the balance sheet shows a stable equity base relative to total assets.

Cash Flow

Free cash flow growth is positive at 10.31%, indicating improved cash generation. However, the operating cash flow to net income ratio is low at 0.13, suggesting potential issues in converting profits into cash. The free cash flow to net income ratio is high at 0.99, indicating efficient cash utilization relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.13B	900.70M	990.96M	886.54M	682.19M	533.94M
Gross Profit	190.67M	150.74M	152.67M	139.34M	104.95M	72.01M
EBITDA	32.78M	38.64M	41.25M	46.04M	31.39M	27.64M
Net Income	17.63M	13.96M	15.37M	19.65M	15.22M	21.72M
Balance Sheet
Total Assets	573.39M	573.39M	506.25M	495.20M	539.76M	257.98M
Cash, Cash Equivalents and Short-Term Investments	245.14M	245.14M	219.13M	197.40M	201.36M	154.13M
Total Debt	81.22M	81.22M	72.79M	74.80M	66.93M	5.85M
Total Liabilities	375.59M	375.59M	314.14M	309.85M	368.88M	135.98M
Stockholders Equity	176.70M	176.70M	169.68M	163.96M	151.88M	122.00M
Cash Flow
Free Cash Flow	36.51M	36.51M	35.39M	56.30M	24.53M	63.38M
Operating Cash Flow	36.92M	36.92M	36.69M	58.99M	25.89M	63.59M
Investing Cash Flow	1.75M	7.90M	3.89M	-3.76M	-9.28M	-1.72M
Financing Cash Flow	-23.51M	-18.31M	-16.78M	-14.93M	-11.65M	-5.16M

Expert Systems Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.12
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8319, the sentiment is Neutral. The current price of 0.12 is below the 20-day moving average (MA) of 0.12, above the 50-day MA of 0.12, and above the 200-day MA of 0.11, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 46.03 is Neutral, neither overbought nor oversold. The STOCH value of 18.42 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	71 Outperform	HK$99.61M	7.13	7.12%	6.47%	3.21%	-12.00%
0318	69 Neutral	HK$108.33M	10.28	2.10%	―	4.19%	-52.73%
8033	66 Neutral	HK$78.86M	5.42	6.73%	8.06%	-1.57%	-18.62%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
0465	53 Neutral	HK$155.62M	-1.97	-29.34%	―	-18.19%	4.52%
8606	48 Neutral	HK$91.09M	―	-1.95%	―	5.01%	82.54%
1949	46 Neutral	HK$167.04M	―	-83.97%	―	-78.41%	-3511.76%