Expert Systems Holdings Ltd. (8319) AI Stock Analysis

• Market Cap: HK$90.77M
• Dividend Yield: 7.26%
• Average Volume (3M): 120.67K
• Price to Earnings (P/E): 6.5
• Beta (1Y): -0.10
• Revenue Growth: -9.11%
• EPS Growth: -8.90%
• 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: 98,000
• 30 Day Avg. Volume: 120,666
• PEG Ratio: 2.06
• 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

• Rating: 60 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The stock's overall score is primarily influenced by its financial performance and valuation. While the company faces revenue and profitability challenges, its stable balance sheet and attractive valuation metrics provide some support. Technical analysis indicates weak momentum, which could limit short-term price appreciation.

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 through several key streams. Primarily, the company earns income from the sale of its proprietary AI software solutions, which are licensed to businesses seeking to leverage advanced analytics and automation capabilities. Additionally, Expert Systems provides consultancy services that help clients implement and optimize these technologies, creating a supplementary revenue stream. The company also engages in partnerships with other technology firms and organizations, enhancing its market reach and enabling co-development of innovative solutions, which can further contribute to its earnings. Furthermore, the company may benefit from ongoing maintenance and support contracts, providing a recurring revenue source from existing clients.

Expert Systems Holdings Ltd. Financial Statement Overview

Summary

The company faces challenges with declining revenue and low profitability margins, which could impact future growth. 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. Overall, the company needs to address revenue growth and profitability to enhance financial performance.

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	910.54M	900.70M	990.96M	886.54M	682.19M	533.94M
Gross Profit	148.15M	150.74M	152.67M	139.34M	104.95M	72.01M
EBITDA	25.40M	38.64M	41.25M	46.04M	31.39M	27.64M
Net Income	14.09M	13.96M	15.37M	19.65M	15.22M	21.72M
Balance Sheet
Total Assets	511.56M	573.39M	506.25M	495.20M	539.76M	257.98M
Cash, Cash Equivalents and Short-Term Investments	174.96M	245.14M	219.13M	197.40M	201.36M	154.13M
Total Debt	75.23M	81.22M	72.79M	74.80M	66.93M	5.85M
Total Liabilities	316.96M	375.59M	314.14M	309.85M	368.88M	135.98M
Stockholders Equity	171.12M	176.70M	169.68M	163.96M	151.88M	122.00M
Cash Flow
Free Cash Flow	33.10M	36.51M	35.39M	56.30M	24.53M	63.38M
Operating Cash Flow	34.15M	36.92M	36.69M	58.99M	25.89M	63.59M
Investing Cash Flow	7.32M	7.90M	3.89M	-3.76M	-9.28M	-1.72M
Financing Cash Flow	-18.65M	-18.31M	-16.78M	-14.93M	-11.65M	-5.16M

Expert Systems Holdings Ltd. Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8319, the sentiment is Negative. The current price of 0.11 is below the 20-day moving average (MA) of 0.12, below the 50-day MA of 0.11, and above the 200-day MA of 0.11, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 29.11 is Positive, neither overbought nor oversold. The STOCH value of 37.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
0318	75 Outperform	102.91M	9.77	0.00%	―	4.19%	-52.73%
8033	73 Outperform	80.71M	5.55	4.66%	7.63%	-1.57%	-18.62%
8319	60 Neutral	HK$90.77M	6.49	8.06%	7.26%	-9.11%	-8.90%
8606	51 Neutral	117.11M	-73.64	-6.27%	―	5.01%	82.54%
1949	46 Neutral	194.88M	-1.75	-87.34%	―	-78.41%	-3511.76%
0465	44 Neutral	107.38M	-1.36	-29.00%	―	-18.19%	4.52%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%