SEHK:2878

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Solomon Systech (International)

Executive Summary

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


Snowflake Analysis

Excellent balance sheet and slightly overvalued.


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 not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: 2878's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

0%

2878

2.2%

HK Semiconductor

-0.5%

HK Market


1 Year Return

65.7%

2878

126.4%

HK Semiconductor

7.6%

HK Market

Return vs Industry: 2878 underperformed the Hong Kong Semiconductor industry which returned 126.4% over the past year.

Return vs Market: 2878 exceeded the Hong Kong Market which returned 7.6% over the past year.


Shareholder returns

2878IndustryMarket
7 Day0%2.2%-0.5%
30 Day18.5%10.4%5.3%
90 Day1.3%14.7%4.2%
1 Year65.7%65.7%128.6%126.4%11.9%7.6%
3 Year-42.9%-42.9%116.5%109.6%-1.2%-11.4%
5 Year-47.9%-47.9%183.9%161.8%29.7%7.9%

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$0.24) is trading below our estimate of fair value (HK$1.75)

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


Price To Earnings Ratio

PE vs Industry: 2878 is unprofitable, so we can't compare its PE Ratio to the HK Semiconductor industry average.

PE vs Market: 2878 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


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 (1.4x) compared to the HK Semiconductor industry average (1.3x).


Next Steps

Future Growth

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

19.6%

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.


Next Steps

Past Performance

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

-28.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2878 is currently unprofitable.

Growing Profit Margin: 2878 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 2878 is unprofitable, and losses have increased over the past 5 years at a rate of 28% per year.

Accelerating Growth: Unable to compare 2878's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 2878 is unprofitable, making it difficult to compare its past year earnings growth to the Semiconductor industry (36.4%).


Return on Equity

High ROE: 2878 has a negative Return on Equity (-24.89%), as it is currently unprofitable.


Next Steps

Financial Health

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


Financial Position Analysis

Short Term Liabilities: 2878's short term assets ($76.7M) exceed its short term liabilities ($28.8M).

Long Term Liabilities: 2878's short term assets ($76.7M) exceed its long term liabilities ($255.0K).


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 0.03% to 0.3% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable 2878 has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: 2878 is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 0.5% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 2878's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 2878's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 2878's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 2878's dividend payments have been 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?

0.8yrs

Average management tenure


CEO

Raymond Wang (54 yo)

1.67yrs

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 ($USD230.00K) is about average for companies of similar size in the Hong Kong market ($USD230.00K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Wah Chi Wang
CEO & Executive Director1.67yrsUS$230.00k0.024%
$ 138.0k
Kwong Wai Leung
Founder & Chairman Emeritus4.42yrsUS$196.00kno data
Chi Wah Cheung
Finance Director & Company Secretary0.58yrno datano data
Jessica Lee
Senior Corporate Communications Managerno datano datano data
Oi Yee Lo
Human Resources Directorno datano datano data
Tai Kwong Pang
Head of Quality & Manufacturingno datano datano data
Lok Man Wu
Head of Mobile Display Business Operations0.83yrno datano data

0.8yrs

Average Tenure

54.5yo

Average Age

Experienced Management: 2878's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Wah Chi Wang
CEO & Executive Director1.67yrsUS$230.00k0.024%
$ 138.0k
Kwong Wai Leung
Founder & Chairman Emeritus4.42yrsUS$196.00kno data
Wai Ming Lo
Non-Executive Director4.42yrsUS$169.00k1.35%
$ 7.7m
Heung Ying Leung
Independent Non-Executive Director6.08yrsUS$37.00k0%
$ 0
Jun Li
Non-Executive Director6.08yrsno datano data
Wei Fu Sheu
Independent Non-Executive Director6.08yrsUS$36.00k0%
$ 0
Tin-Chong Yiu
Independent Non-Executive Director9.33yrsUS$39.00k0.081%
$ 460.0k
Yuchuan Ma
Chairman1.5yrsno datano data
Jian Yu
Non-Executive Director1.42yrsno datano data

4.4yrs

Average Tenure

55yo

Average Age

Experienced Board: 2878's board of directors are considered experienced (4.4 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$570.458m
  • Shares outstanding: 2.48b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2878SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDApr 2004
RZFDB (Deutsche Boerse AG)YesOrdinary SharesDEEURApr 2004

Biography

Solomon Systech (International) Limited, an investment holding company, operates as a fabless semiconductor company worldwide. The company primarily designs, develops, and sells display integrated circuits...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/26 10:18
End of Day Share Price2020/11/26 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.