2878 Stock Overview
Solomon Systech (International) Limited, an investment holding company, operates as a fabless semiconductor company.
Solomon Systech (International) Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||HK$0.43|
|52 Week High||HK$0.96|
|52 Week Low||HK$0.42|
|1 Month Change||-35.08%|
|3 Month Change||-25.00%|
|1 Year Change||-38.73%|
|3 Year Change||139.01%|
|5 Year Change||22.54%|
|Change since IPO||-76.61%|
Recent News & Updates
Under The Bonnet, Solomon Systech (International)'s (HKG:2878) Returns Look Impressive
There are a few key trends to look for if we want to identify the next multi-bagger. Amongst other things, we'll want...
Solomon Systech (International) Limited's (HKG:2878) Business Is Trailing The Market But Its Shares Aren't
There wouldn't be many who think Solomon Systech (International) Limited's ( HKG:2878 ) price-to-earnings (or "P/E...
|2878||HK Semiconductor||HK Market|
Return vs Industry: 2878 underperformed the Hong Kong Semiconductor industry which returned -34.8% over the past year.
Return vs Market: 2878 underperformed the Hong Kong Market which returned -29.1% over the past year.
|2878 Average Weekly Movement||11.4%|
|Semiconductor Industry Average Movement||6.6%|
|Market Average Movement||6.4%|
|10% most volatile stocks in HK Market||12.6%|
|10% least volatile stocks in HK Market||3.1%|
Stable Share Price: 2878 is more volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 11% a week.
Volatility Over Time: 2878's weekly volatility (11%) has been stable over the past year, but is still higher than 75% of Hong Kong stocks.
About the Company
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 passive matrix organic light emitting diode display ICs; active-matrix organic light emitting diode display ICs; organic light emitting diode display and lighting driver ICs; and bistable display driver ICs.
Solomon Systech (International) Fundamentals Summary
|2878 fundamental statistics|
Is 2878 overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|2878 income statement (TTM)|
|Cost of Revenue||US$121.49m|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
|Earnings per share (EPS)||0.014|
|Net Profit Margin||17.26%|
How did 2878 perform over the long term?See historical performance and comparison
2.3%Current Dividend Yield
Is 2878 undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 2/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for 2878?
Other financial metrics that can be useful for relative valuation.
|What is 2878's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does 2878's PE Ratio compare to its peers?
|2878 PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
85 China Electronics Huada Technology
6939 MEGAIN Holding (Cayman)
1305 Wai Chi Holdings
8490 Niche-Tech Group
2878 Solomon Systech (International)
Price-To-Earnings vs Peers: 2878 is good value based on its Price-To-Earnings Ratio (4x) compared to the peer average (8x).
Price to Earnings Ratio vs Industry
How does 2878's PE Ratio compare vs other companies in the Asian Semiconductor Industry?
Price-To-Earnings vs Industry: 2878 is good value based on its Price-To-Earnings Ratio (4x) compared to the Asian Semiconductor industry average (15.3x)
Price to Earnings Ratio vs Fair Ratio
What is 2878's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PE Ratio||4x|
|Fair PE Ratio||n/a|
Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 2878's Price-To-Earnings Fair Ratio for valuation analysis.
Share Price vs Fair Value
What is the Fair Price of 2878 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: 2878 (HK$0.44) is trading above our estimate of fair value (HK$0.15)
Significantly Below Fair Value: 2878 is trading above our estimate of fair value.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Insufficient data to show price forecast.
Discover undervalued companies
How is Solomon Systech (International) forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
Future Growth Score0/6
Future Growth Score 0/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
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.
Discover growth companies
- Check out Solomon Systech (International)'s track record over time to understand how much the company has returned to shareholders and its earnings growth rate in the past.
- Solomon Systech (International) competitive advantages and company strategy can generally be found in its financial reports archived here.
How has Solomon Systech (International) performed over the past 5 years?
Past Performance Score6/6
Past Performance Score 6/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 2878 has high quality earnings.
Growing Profit Margin: 2878's current net profit margins (17.3%) are higher than last year (13.1%).
Past Earnings Growth Analysis
Earnings Trend: 2878 has become profitable over the past 5 years, growing earnings by 54.4% per year.
Accelerating Growth: 2878's earnings growth over the past year (93.3%) exceeds its 5-year average (54.4% per year).
Earnings vs Industry: 2878 earnings growth over the past year (93.3%) exceeded the Semiconductor industry 73.3%.
Return on Equity
High ROE: 2878's Return on Equity (32.9%) is considered high.
Discover strong past performing companies
How is Solomon Systech (International)'s financial position?
Financial Health Score5/6
Financial Health Score 5/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: 2878's short term assets ($150.9M) exceed its short term liabilities ($61.4M).
Long Term Liabilities: 2878's short term assets ($150.9M) exceed its long term liabilities ($1.3M).
Debt to Equity History and Analysis
Debt Level: 2878 has more cash than its total debt.
Reducing Debt: 2878's debt to equity ratio has reduced from 0.3% to 0.2% over the past 5 years.
Debt Coverage: 2878's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: 2878 earns more interest than it pays, so coverage of interest payments is not a concern.
Discover healthy companies
What is Solomon Systech (International) current dividend yield, its reliability and sustainability?
Dividend Score 1/6
Cash Flow Coverage
Current Dividend Yield
Dividend Yield vs Market
|Solomon Systech (International) Dividend Yield vs Market|
|Company (Solomon Systech (International))||2.3%|
|Market Bottom 25% (HK)||3.0%|
|Market Top 25% (HK)||8.9%|
|Industry Average (Semiconductor)||2.5%|
|Analyst forecast in 3 Years (Solomon Systech (International))||n/a|
Notable Dividend: 2878's dividend (2.3%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.98%).
High Dividend: 2878's dividend (2.3%) is low compared to the top 25% of dividend payers in the Hong Kong market (8.91%).
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.
Earnings Payout to Shareholders
Earnings Coverage: With its low payout ratio (7.2%), 2878's dividend payments are thoroughly covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: 2878 is paying a dividend but the company has no free cash flows.
Discover strong dividend paying companies
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Raymond Wang (56 yo)
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
|Raymond Wang's Compensation vs Solomon Systech (International) Earnings|
|Date||Total Comp.||Salary||Company Earnings|
|Jun 30 2022||n/a||n/a|
|Mar 31 2022||n/a||n/a|
|Dec 31 2021||US$743k||US$628k|
|Sep 30 2021||n/a||n/a|
|Jun 30 2021||n/a||n/a|
|Mar 31 2021||n/a||n/a|
|Dec 31 2020||US$601k||US$577k|
|Sep 30 2020||n/a||n/a|
|Jun 30 2020||n/a||n/a|
|Mar 31 2020||n/a||n/a|
|Dec 31 2019||US$230k||US$206k|
Compensation vs Market: Raymond's total compensation ($USD743.00K) is above average for companies of similar size in the Hong Kong market ($USD241.54K).
Compensation vs Earnings: Raymond's compensation has increased by more than 20% in the past year.
Experienced Management: 2878's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.
Experienced Board: 2878's board of directors are considered experienced (4 years average tenure).
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.
|Owner Type||Number of Shares||Ownership Percentage|
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
|Ownership||Name||Shares||Current Value||Change %||Portfolio %|
Solomon Systech (International) Limited's employee growth, exchange listings and data sources
- Name: Solomon Systech (International) Limited
- Ticker: 2878
- Exchange: SEHK
- Founded: 1999
- Industry: Semiconductors
- Sector: Semiconductors
- Implied Market Cap: HK$1.085b
- Shares outstanding: 2.49b
- Website: https://www.solomon-systech.com
Number of Employees
- Solomon Systech (International) Limited
- Wireless Centre
- Unit 607-613, 6th Floor
- Sha Tin
- New Territories
- Hong Kong
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|2878||SEHK (The Stock Exchange of Hong Kong Ltd.)||Yes||Ordinary Shares||HK||HKD||Apr 2004|
|RZF||DB (Deutsche Boerse AG)||Yes||Ordinary Shares||DE||EUR||Apr 2004|
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/09/30 00:00|
|End of Day Share Price||2022/09/30 00:00|
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.