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Solomon Systech (International) Ltd.
(2878)
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Rating:51Neutral
Price Target:
HK$0.22
▼(-17.04% Downside)
Action:Reiterated
Date:10/06/26
The score is held back primarily by weakening operating performance and sharply deteriorating cash generation (including slightly negative free cash flow). Technicals also remain bearish with the stock below key moving averages and negative momentum. The main offsetting positive is a notably strong, low-leverage balance sheet, but valuation remains hard to assess given the negative P/E and no dividend yield data.
Positive Factors
Focused fabless display IC business
The company has a clearly defined semiconductor niche centered on display-related ICs, system solutions, and technical support. This specialization provides an established business focus across LCD, OLED, and module applications, supporting continuity as customers develop and integrate display products.
Negative Factors
Persistent revenue contraction
Revenue has fallen for two consecutive years, indicating that recent demand and product adoption have not been sufficient to sustain top-line growth. Continued contraction can reduce operating leverage, constrain investment capacity, and make a durable earnings recovery more difficult over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Focused fabless display IC business
The company has a clearly defined semiconductor niche centered on display-related ICs, system solutions, and technical support. This specialization provides an established business focus across LCD, OLED, and module applications, supporting continuity as customers develop and integrate display products.
Read all positive factors
Solomon Systech (International) Ltd. (2878) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$547.01M
Dividend Yield1.85%
Average Volume (3M)797.40K
Price to Earnings (P/E)―
Beta (1Y)1.08
Revenue Growth-6.32%
EPS Growth-159.42%
CountryHK
Employees279
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)>-0.01
Shares Outstanding2,497,752,400
10 Day Avg. Volume811,000
30 Day Avg. Volume797,400
Financial Highlights & Ratios
PEG Ratio-0.57
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 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 ...
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 g...
Solomon Systech (International) Ltd. Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
82
Very Positive
Cash Flow
41
Neutral
| 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
Negative
0.27
Price Trends
0.25
Negative
0.30
Negative
0.35
Negative
Market Momentum
>-0.01
Positive
30.56
Neutral
20.69
Neutral
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 0.27 is above the 20-day moving average (MA) of 0.24, above the 50-day MA of 0.25, and below the 200-day MA of 0.35, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 30.56 is Neutral, neither overbought nor oversold. The STOCH value of 20.69 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
69 Neutral | HK$275.70B | 29.42 | 31.64% | 0.21% | 119.93% | 589.16% | |
63 Neutral | HK$261.23B | 89.00 | 17.80% | 0.25% | 38.76% | ― | |
62 Neutral | HK$41.18B | 49.30 | 13.88% | 0.27% | 24.48% | 124.67% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | HK$114.79B | 29.64 | 10.66% | 0.17% | 8.45% | ― | |
51 Neutral | HK$547.01M | -18.72 | -2.79% | 1.85% | -6.32% | -159.42% |
* Technology Sector Average
HK:2878
Solomon Systech (International) Ltd.
0.22
-0.33
-60.18%
HK:1385
Shanghai Fudan Microelectronics Group Co
24.16
-18.18
-42.94%
HK:0501
Omnivision Integrated Circuits Group, Inc. Class H
66.30
-55.34
-45.50%
HK:3986
Giga Device Semiconductor Inc. Class H
398.80
176.42
79.33%
HK:6809
Montage Technology Co., Ltd. Class H
273.40
98.74
56.54%
HK:3277
Gpixel Changchun Microelectronics Inc Class H
65.00
-4.78
-6.86%
Solomon Systech (International) Ltd. Corporate Events
Solomon Systech Slides into Loss as Margins Tighten in First Half 2026
Aug 21, 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...
Solomon Systech Sets Board Meeting to Review Interim Results and Dividend
Aug 3, 2026
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...
Solomon Systech Warns of Interim Loss Amid Rising Chip Costs
Jul 17, 2026
Solomon Systech has issued a profit warning, saying it expects to post an unaudited consolidated loss of about US$3.8 million to US$4.1 million for the six months ended 30 June 2026, reversing a US$4.0 million profit a year earlier. The downturn i...
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.