Solomon Systech (International) Ltd. (HK:2878)
:2878
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Solomon Systech (International) Ltd.
(2878)
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Rating:55Neutral
Price Target:
HK$0.48
▲(8.41% Upside)
Action:Reiterated
Date:04/27/26
The score is held back mainly by weakening profitability and especially volatile/weak cash generation (including negative free cash flow in 2025), partially offset by a strong, low-leverage balance sheet. Technicals are only moderately supportive, and valuation cannot be meaningfully assessed due to missing/invalid P/E and absent dividend yield.
Positive Factors
Strong Balance Sheet
Extremely low leverage and a large equity base give the company financial flexibility to fund R&D, weather semiconductor cyclicality, and pursue strategic opportunities without near-term refinancing risk. This durability supports long-term operational resilience.
Negative Factors
Revenue Declines
Two consecutive years of revenue decline signal weakening end-market demand or competitive share loss. Ongoing top-line contraction reduces operating leverage, pressures unit economics, and limits the firm's ability to invest in product development and customer expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Balance Sheet
Extremely low leverage and a large equity base give the company financial flexibility to fund R&D, weather semiconductor cyclicality, and pursue strategic opportunities without near-term refinancing risk. This durability supports long-term operational resilience.
Read all positive factors
Solomon Systech (International) Ltd. (2878) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$1.04B
Dividend YieldN/A
Average Volume (3M)17.82M
Price to Earnings (P/E)33.9
Beta (1Y)1.83
Revenue Growth-17.88%
EPS Growth-60.44%
CountryHK
Employees379
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)0.00
Shares Outstanding2,497,752,400
10 Day Avg. Volume10,768,600
30 Day Avg. Volume17,815,300
Financial Highlights & Ratios
PEG Ratio-0.56
Price to Book (P/B)0.96
Price to Sales (P/S)1.46
P/FCF Ratio-1.22K
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Solomon Systech (International) Ltd. Business Overview & Revenue Model
Company Description
Solomon Systech (International) Limited, an investment holding company, operates as a fabless semiconductor company. The company primarily designs, develops, and sells display integrated circuits (IC) products and system solutions. It offers passi...
How the Company Makes Money
The company makes money primarily by selling its display-related integrated circuits and associated solutions to customers that manufacture display modules and electronic devices. Revenue is generated through (i) product sales of driver ICs and ot...
Solomon Systech (International) Ltd. Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
82
Very Positive
Cash Flow
41
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 93.26M | 113.44M | 153.15M | 190.84M | 168.12M |
| Gross Profit | 32.65M | 38.05M | 46.34M | 65.47M | 67.25M |
| EBITDA | -816.00K | 5.99M | 22.34M | 27.72M | 24.25M |
| Net Income | 4.03M | 10.13M | 19.44M | 27.83M | 23.78M |
Balance Sheet | |||||
| Total Assets | 164.70M | 163.71M | 157.43M | 158.26M | 139.91M |
| Cash, Cash Equivalents and Short-Term Investments | 106.90M | 104.24M | 82.86M | 45.56M | 24.76M |
| Total Debt | 2.43M | 3.31M | 3.16M | 3.42M | 2.71M |
| Total Liabilities | 22.84M | 26.66M | 30.50M | 49.08M | 53.21M |
| Stockholders Equity | 141.86M | 137.04M | 127.00M | 109.25M | 86.76M |
Cash Flow | |||||
| Free Cash Flow | -112.17K | 17.79M | 36.72M | 15.05M | -7.52M |
| Operating Cash Flow | 2.25M | 20.04M | 37.81M | 17.59M | -5.98M |
| Investing Cash Flow | -2.32M | 4.44M | -865.00K | -2.17M | -1.25M |
| Financing Cash Flow | -1.40M | -265.00K | -1.11M | 7.80M | -20.18M |
Solomon Systech (International) Ltd. Technical Analysis
Negative
0.44
Price Trends
0.39
Positive
0.41
Negative
0.45
Negative
Market Momentum
<0.01
Positive
47.74
Neutral
13.13
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2878, the sentiment is Negative. The current price of 0.44 is above the 20-day moving average (MA) of 0.41, above the 50-day MA of 0.39, and below the 200-day MA of 0.45, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 47.74 is Neutral, neither overbought nor oversold. The STOCH value of 13.13 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2878.
Solomon Systech (International) Ltd. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | HK$2.31B | 11.13 | 6.65% | 6.98% | -7.14% | -59.92% | |
62 Neutral | HK$74.98B | 31.83 | 6.37% | 0.69% | 3.83% | 160.15% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
55 Neutral | HK$1.04B | 33.87 | 4.98% | ― | -17.88% | -60.44% | |
55 Neutral | HK$55.43B | 47.35 | 3.97% | 0.20% | 17.21% | -54.17% | |
50 Neutral | HK$260.05B | 214.07 | 0.84% | 0.23% | 22.26% | 171.99% | |
49 Neutral | HK$119.94M | -1.89 | -40.33% | ― | -24.59% | 9.82% |
* Technology Sector Average
HK:2878
Solomon Systech (International) Ltd.
0.42
0.03
9.21%
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178.90
125.46
234.74%
HK:1385
Shanghai Fudan Microelectronics Group Co
37.94
10.18
36.66%
HK:1347
Hua Hong Semiconductor Ltd.
132.80
101.45
323.60%
HK:8490
Niche-Tech Semiconductor Materials Limited
0.17
0.03
24.09%
HK:0085
China Electronics Huada Technology Company Limited
1.14
-0.18
-13.64%
Solomon Systech (International) Ltd. Corporate Events
Solomon Systech Calls 2026 AGM, Seeks Fresh Share Buyback and Issuance Mandates
Apr 24, 2026
Solomon Systech (International) Ltd. has called its annual general meeting for 18 June 2026 in Hong Kong, where shareholders will review the audited financial statements for the year ended 31 December 2025 and vote on the re-election of four direc...
Solomon Systech Profit Slumps on Revenue Drop and Higher R&D Spend
Mar 19, 2026
Solomon Systech (International) Ltd., a Hong Kong-listed semiconductor designer of display and mixed-signal ICs, reported weaker results for 2025 as the market remained challenging. The group focuses on display controllers and system-on-chip solut...
Solomon Systech Flags 60–65% Profit Drop on Price Pressure and Higher R&D Spend
Mar 6, 2026
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 20...
Solomon Systech Sets March Board Meeting to Approve 2025 Results and Consider Dividend
Mar 4, 2026
Solomon Systech (International) Ltd. has scheduled a board meeting for 19 March 2026 to review and approve the consolidated annual results for the year ended 31 December 2025 and to consider the publication of those results. The board will also de...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.