2878

Solomon Systech (International)SEHK:2878 Stock Report

Market Cap

HK$2.1b

7D

-8.9%

1Y

258.1%

Updated

17 Sep, 2021

Data

Company Financials
2878 fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance4/6
Financial Health5/6
Dividends0/6

2878 Overview

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

Solomon Systech (International) Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Solomon Systech (International)
Historical stock prices
Current Share PriceHK$0.82
52 Week HighHK$0.18
52 Week LowHK$1.45
Beta1.65
1 Month Change-17.17%
3 Month Change-5.75%
1 Year Change258.08%
3 Year Change215.39%
5 Year Change164.52%
Change since IPO-55.91%

Recent News & Updates

Jul 15
Solomon Systech (International) (HKG:2878) Might Have The Makings Of A Multi-Bagger

Solomon Systech (International) (HKG:2878) Might Have The Makings Of A Multi-Bagger

Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key...

Shareholder Returns

2878HK SemiconductorHK Market
7D-8.9%-5.4%-4.1%
1Y258.1%46.9%5.4%

Return vs Industry: 2878 exceeded the Hong Kong Semiconductor industry which returned 46.9% over the past year.

Return vs Market: 2878 exceeded the Hong Kong Market which returned 5.4% over the past year.

Price Volatility

Is 2878's price volatile compared to industry and market?
2878 volatility
2878 Beta1.65
Industry Beta0.76
Market Beta1

Stable Share Price: 2878 is more volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 13% a week.

Volatility Over Time: 2878's weekly volatility (13%) has been stable over the past year, but is still higher than 75% of Hong Kong stocks.

About the Company

FoundedEmployeesCEOWebsite
1999335Raymond Wanghttps://www.solomon-systech.com

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 advanced display products, including passive matrix organic light emitting diode (PMOLED) display ICs; active matrix organic light emitting diode (AMOLED) display ICs; organic light emitting diode (OLED) display and lighting driver ICs; and bistable display and driver ICs.

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$0.82) is trading below our estimate of fair value (HK$2.53)

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


Price To Earnings Ratio

PE vs Industry: 2878 is good value based on its PE Ratio (14.6x) compared to the Hong Kong Semiconductor industry average (24x).

PE vs Market: 2878 is poor value based on its PE Ratio (14.6x) compared to the Hong Kong market (10.1x).


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 (3.6x) compared to the HK Semiconductor industry average (2.4x).


Future Growth

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

9.9%

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?

20.7%

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 20.7% 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 (52%).


Return on Equity

High ROE: 2878's Return on Equity (25%) is considered high.


Financial Health

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


Financial Position Analysis

Short Term Liabilities: 2878's short term assets ($103.0M) exceed its short term liabilities ($39.5M).

Long Term Liabilities: 2878's short term assets ($103.0M) exceed its long term liabilities ($1.9M).


Debt to Equity History and Analysis

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

Reducing Debt: 2878's debt to equity ratio has increased from 0.2% to 0.3% over the past 5 years.

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?

0.97%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 2878's dividend (0.97%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.24%).

High Dividend: 2878's dividend (0.97%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.74%).


Stability and Growth of Payments

Stable Dividend: 2878 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are stable.

Growing Dividend: 2878 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 2878 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 2878's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

Raymond Wang (55 yo)

2.5yrs

Tenure

US$601,000

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 ($USD601.00K) is above average for companies of similar size in the Hong Kong market ($USD289.12K).

Compensation vs Earnings: Raymond's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: 2878's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

Experienced Board: 2878's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Solomon Systech (International) Limited's 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$2.067b
  • Shares outstanding: 2.49b
  • Website: https://www.solomon-systech.com

Number of Employees


Location

  • Solomon Systech (International) Limited
  • Unit 607-613
  • 6th Floor, Wireless Centre
  • Sha Tin
  • New Territories
  • Hong Kong

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/17 15:36
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
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.