Solomon Systech Flags 60–65% Profit Drop on Price Pressure and Higher R&D Spend

Solomon Systech (International) Ltd. ( (HK:2878) ) has provided an update.

Solomon Systech (International) Ltd. has warned that its unaudited consolidated profit attributable to shareholders for 2025 is expected to fall sharply to between US$3.5 million and US$4.0 million, down about 60% to 65% from US$10.1 million in 2024. The decline is mainly attributed to a drop in average selling prices for its products, which compressed gross profit, and higher research and development expenses linked to new product development.

Despite the profit contraction, the company reported a stable increase in shipment volumes in its New Display IC business, underlining continued market demand for its core technologies. Management stressed that the group retains sufficient resources to fund ongoing R&D projects, positioning the company to sustain its long-term competitiveness even as shareholders and potential investors are urged to exercise caution ahead of the final audited 2025 results.

The most recent analyst rating on (HK:2878) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Solomon Systech (International) Ltd. stock, see the HK:2878 Stock Forecast page.

More about Solomon Systech (International) Ltd.

Solomon Systech (International) Ltd. is a Hong Kong-listed semiconductor company focused on display integrated circuits, particularly in the New Display IC segment. The group designs and supplies IC products used across various display applications, with a strategic emphasis on maintaining shipment growth while investing in research and development to support long-term competitiveness.

Average Trading Volume: 2,268,568

Technical Sentiment Signal: Strong Sell

Current Market Cap: HK$974.1M

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