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Solomon Systech (International)

Market Cap

HK$2.0b

Last Updated

2021/05/06 10:16 UTC

Data Sources

Company Financials

Executive Summary

Solomon Systech (International) Limited, an investment holding company, operates as a fabless semiconductor company. More Details


Snowflake Analysis

Flawless balance sheet with acceptable track record.


Similar Companies

Share Price & News

How has Solomon Systech (International)'s share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 2878 is more volatile than 90% of Hong Kong stocks over the past 3 months, typically moving +/- 17% a week.

Volatility Over Time: 2878's weekly volatility (17%) has been stable over the past year, but is still higher than 75% of Hong Kong stocks.


Market Performance


7 Day Return

16.4%

2878

-5.6%

HK Semiconductor

-1.6%

HK Market


1 Year Return

620.3%

2878

106.5%

HK Semiconductor

27.1%

HK Market

Return vs Industry: 2878 exceeded the Hong Kong Semiconductor industry which returned 106.5% over the past year.

Return vs Market: 2878 exceeded the Hong Kong Market which returned 27.1% over the past year.


Shareholder returns

2878IndustryMarket
7 Day16.4%-5.6%-1.6%
30 Day80.9%-6.6%-1.8%
90 Day136.1%-22.4%-2.6%
1 Year620.3%620.3%108.1%106.5%32.0%27.1%
3 Year146.4%146.4%150.5%141.8%4.7%-6.4%
5 Year169.8%169.8%265.9%236.9%59.5%32.5%

Long-Term Price Volatility Vs. Market

How volatile is Solomon Systech (International)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Solomon Systech (International) undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 2878 (HK$0.85) is trading below our estimate of fair value (HK$17.35)

Significantly Below Fair Value: 2878 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 2878 is poor value based on its PE Ratio (23.2x) compared to the HK Semiconductor industry average (21.8x).

PE vs Market: 2878 is poor value based on its PE Ratio (23.2x) compared to the Hong Kong market (11.7x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 2878's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 2878 is overvalued based on its PB Ratio (4.3x) compared to the HK Semiconductor industry average (2.6x).


Future Growth

How is Solomon Systech (International) forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

19.0%

Forecasted Semiconductors industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Solomon Systech (International) has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has Solomon Systech (International) performed over the past 5 years?

-3.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2878 has high quality earnings.

Growing Profit Margin: 2878 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 2878 has become profitable over the past 5 years, growing earnings by -3.2% per year.

Accelerating Growth: 2878 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 2878 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Semiconductor industry (-13.3%).


Return on Equity

High ROE: 2878's Return on Equity (18.4%) is considered low.


Financial Health

How is Solomon Systech (International)'s financial position?


Financial Position Analysis

Short Term Liabilities: 2878's short term assets ($86.8M) exceed its short term liabilities ($30.7M).

Long Term Liabilities: 2878's short term assets ($86.8M) exceed its long term liabilities ($125.0K).


Debt to Equity History and Analysis

Debt Level: 2878's debt to equity ratio (0.3%) is considered satisfactory.

Reducing Debt: 2878 had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: 2878's debt is well covered by operating cash flow (18861.3%).

Interest Coverage: 2878 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Solomon Systech (International) current dividend yield, its reliability and sustainability?

0.94%

Current Dividend Yield


Upcoming Dividend Payment

TodayMay 06 2021Ex Dividend DateJun 07 2021Dividend Pay DateJun 25 202118 days from Ex DividendBuy in the next 31 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: 2878's dividend (0.94%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (1.91%).

High Dividend: 2878's dividend (0.94%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.05%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether 2878's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 2878's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (21.2%), 2878's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average management tenure


CEO

Raymond Wang (54 yo)

2.17yrs

Tenure

US$230,000

Compensation

Mr. Wah Chi Wang, also known as Raymond, serves as Chief Executive Officer at Solomon Systech (International) Limited. He serves as Executive Director at Solomon Systech (International) Limited since March...


CEO Compensation Analysis

Compensation vs Market: Raymond's total compensation ($USD230.00K) is about average for companies of similar size in the Hong Kong market ($USD289.40K).

Compensation vs Earnings: Insufficient data to compare Raymond's compensation with company performance.


Leadership Team

Experienced Management: 2878's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

Experienced Board: 2878's board of directors are considered experienced (4.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Solomon Systech (International) Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Solomon Systech (International) Limited
  • Ticker: 2878
  • Exchange: SEHK
  • Founded: 1999
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: HK$1.989b
  • Shares outstanding: 2.49b
  • Website: https://www.solomon-systech.com

Number of Employees


Location

  • Solomon Systech (International) Limited
  • No.3 Science Park East Avenue
  • 6th Floor
  • Sha Tin
  • New Territories
  • Hong Kong

Listings


Biography

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) prod...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/06 10:16
End of Day Share Price2021/05/06 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.