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Solomon Systech (International) Ltd. (2878) AI Stock Analysis
Solomon Systech (International) Ltd.
(HKEX:2878)
The overall score is constrained mainly by weak financial trends, with revenue halving since 2022 and operating cash flow dropping to near breakeven despite a solid, low-leverage balance sheet. Technical conditions are also negative, as the stock trades below all major moving averages with a volatile, oversold downtrend, further weighing on the rating. Valuation offers limited support because losses drive a negative P/E and no dividend yield data is available, keeping the stock in a higher-risk, turnaround category.
Solomon Systech (International) Ltd. (2878) vs. iShares MSCI Hong Kong ETF (EWH)
- Market Cap
- HKD 514.54M
- Dividend Yield
- ―
- Average Volume (3M)
- 1.05M
- Price to Earnings (P/E)
- -16.4
- Beta (1Y)
- 0.99
- Revenue Growth
- -6.32%
- EPS Growth
- -159.42%
- Country
- Hong Kong
- Employees
- 279
- Sector
- Technology
- Sector Strength
- 61
- Industry
- Semiconductors
Solomon Systech (International) Ltd. Business Overview & Revenue Model
Company Description
Solomon Systech (International) Limited functions as an investment holding entity and a fabless semiconductor enterprise. The company's core activities revolve around the engineering, development, and distribution of integrated circuits (ICs) and sys...
How the Company Makes Money
Solomon Systech primarily makes money by selling display-related semiconductor IC products it designs (as a fabless company, it typically outsources wafer fabrication and packaging/testing to third-party foundries and OSAT providers). Revenue is gene...
Solomon Systech (International) Ltd. Financial Statement Overview
Summary
Revenue has fallen sharply from HK$190M in 2022 to HK$93M in 2025 and profitability and operating cash flow have deteriorated, but a strong, low-debt equity base keeps the overall financial position moderately sound.
Income Statement
45NeutralBalance Sheet
82Very PositiveCash Flow
38Negative| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 90.94M | 93.26M | 113.44M | 153.15M | 190.84M | 168.12M |
| Gross Profit | 25.47M | 32.65M | 38.05M | 46.34M | 65.47M | 67.25M |
| EBITDA | -6.20M | 525.00K | 7.63M | 22.34M | 29.08M | 25.50M |
| Net Income | -3.92M | 4.03M | 10.13M | 19.44M | 27.83M | 23.78M |
Balance Sheet | ||||||
| Total Assets | 164.06M | 164.70M | 163.71M | 157.43M | 158.26M | 139.91M |
| Cash, Cash Equivalents and Short-Term Investments | 110.47M | 106.90M | 104.24M | 82.86M | 45.56M | 24.76M |
| Total Debt | 1.79M | 2.43M | 3.31M | 3.16M | 3.42M | 2.71M |
| Total Liabilities | 24.85M | 22.84M | 26.66M | 30.50M | 49.08M | 53.21M |
| Stockholders Equity | 139.20M | 141.86M | 137.04M | 127.00M | 109.25M | 86.76M |
Cash Flow | ||||||
| Free Cash Flow | -3.91M | -112.17K | 17.79M | 36.72M | 15.05M | -7.52M |
| Operating Cash Flow | -3.27M | 2.25M | 20.04M | 37.81M | 17.59M | -5.98M |
| Investing Cash Flow | -573.29K | -2.32M | 4.44M | -865.00K | -2.17M | -1.25M |
| Financing Cash Flow | -2.69M | -1.40M | -265.00K | -1.11M | 7.80M | -20.18M |
Solomon Systech (International) Ltd. Technical Analysis
Price Trends
Market Momentum
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 0.21 is below the 20-day moving average (MA) of 0.22, below the 50-day MA of 0.24, and below the 200-day MA of 0.34, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 34.00 is Neutral, neither overbought nor oversold. The STOCH value of 17.10 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
Overall Rating
HK:398675Outperform
HK:680968.25Neutral
HK:050164.6Neutral
HK:138558Neutral- HK:287848.1Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| HK:3986 | 75Outperform | HKD 214.10B | 15.99 | 29.28% | 0.27% | 181.29% | 771.19% |
| HK:6809 | 68Neutral | HKD 211.26B | 55.28 | 19.49% | 0.32% | 40.03% | ― |
| HK:0501 | 65Neutral | HKD 120.55B | 32.33 | 9.88% | 0.16% | 7.37% | ― |
| Sector * | 61Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
| HK:1385 | 58Neutral | HKD 35.24B | 39.11 | 14.45% | 0.31% | 21.04% | 115.77% |
| HK:2878 | 48Neutral | HKD 514.54M | -16.41 | -2.79% | ― | -6.32% | -159.42% |
* Technology Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| HK:2878 | Solomon Systech (International) Ltd. | 0.21 | -0.28 | -57.96% | |
| HK:1385 | Shanghai Fudan Microelectronics Group Co Class H | 21.62 | -20.56 | -48.74% | |
| HK:0501 | Omnivision Integrated Circuits Group, Inc. Class H | 73.45 | -48.19 | -39.62% | |
| HK:3986 | Giga Device Semiconductor Inc. Class H | 315.00 | 92.62 | 41.65% | |
| HK:6809 | Montage Technology Co., Ltd. Class H | 207.60 | 32.94 | 18.86% | |
| HK:3277 | Gpixel Changchun Microelectronics Inc Class H | 43.22 | -26.56 | -38.07% |
Solomon Systech (International) Ltd. Corporate Events
Solomon Systech Renews Connected Distribution Deal with CEACI
Solomon Systech (International) Ltd. has renewed its existing sales and distribution arrangements with connected party CEACI by signing a new 2027 Products Sales and Distribution Agreement, effective from 1 January 2027 to 31 December 2029, under whi...
Solomon Systech Renews Connected EDA Tool Licences With CEC Subsidiary
Solomon Systech has renewed licenses for electronic design automation tools with HES, a subsidiary of substantial shareholder China Electronics Corporation, for its SSL-China and SSL-SZ units. The three-year agreements, running from 30 October 2026 t...
Solomon Systech Slides into Loss as Margins Tighten in First Half 2026
Solomon Systech reported interim revenue of US$43.7 million for the six months ended 30 June 2026, a 4.8% decline from the prior year as gross profit fell to US$12.0 million and margin compressed to 27.4%. The group swung to a loss attributable to sh...
Solomon Systech Sets Board Meeting to Review Interim Results and Dividend
Solomon Systech (International) Ltd. has scheduled a board meeting for 21 August 2026 to review and approve the unaudited consolidated interim results for the six months ended 30 June 2026. The board will also consider the potential declaration of an...
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.
Date of analysis: Oct 06, 2026