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Solomon Systech International Ltd (2878) fair value: what the stock is really worth

As of Nov 2, 2026: fair value (intrinsic value) of Solomon Systech International Ltd stock HK$0.12, price HK$0.21, that is 40.2% below the price, quality 49 out of 100. Rating: strongly overvalued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.

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Technology HK · ISIN KYG826051099

Thin data Nov 2, 2026

Solomon Systech International Ltd

2878 · HK

Very expensive, weak quality

Our calculation puts a fair price 40% below what the stock costs today.

Low debt

Quality 49/100

Loss over the last twelve months · -4.3% net margin (TTM) · fiscal year 2025 4.3%

Mixed vs. peers (6/12)

Fair value HK$0.1225 · Strongly overvalued (−40.2%)

Weak Growth (revenue 5y −5.1 %/yr in USD)

Negative free cash flow

Narrow moat 16/100

Thin data

⟳ Cyclical

26 models, one by oneBear HK$0.0945 to bull HK$0.1540 Growth analysisrevenue history, year by year Quality 49/100 in detail37 factors, each one shown Compared with its peersrank on every measure, side by side

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What runs behind every stock

26 valuation models 8 families, DCF to NCAV 37 quality factors margins, balance sheet, cashflow, debt 6 AI factors moat, what no ratio measures 2,000+ data points verified, per stock, median

69 individual criteria per stock, every one traceable See the method →

Price vs Fair Value

White line = price, green steps = our fair value per fiscal year. As of Nov 2, 2026.

How to read this chart

60‑month range HK$0.2050 – HK$1.24 · fair‑value band HK$0.0945 – HK$0.1540 · the HK$0.2050 price screens above the HK$0.1225 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 2, 2026.

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Company profile

Solomon Systech (International) Limited, an investment holding company, operates as a fabless semiconductor company in Hong Kong, Mainland China, Taiwan, Europe, Japan, Korea, Southeast Asia, the United States, and internationally.

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The company primarily designs, manufactures, develops, sells, and distributes display integrated circuits (IC) products and system solutions.

It also offers bistable displays; mobile display IC solutions, including in-cell touch display driver IC, TFT display driver IC, STN display driver IC, MIPI bridge IC, display controller IC, LCD touch controller IC, hi-speed interface IC and Local Dimming MiniLED backlight product; and organic light emitting diode (OLED) display products that include passive matrix OLED driver controllers for small size mobile display applications.

In addition, the company provides large display driver IC solutions, such as source drivers, gate drivers, a GIP controller, and power IC; automotive display IC products; and custom ICs for digital, analog, and mixed-signal applications.

Its products enable a range of display and touch applications for smartphones; tablets; TVs/monitors; notebooks; and other smart devices, including wearables, electronic shelf labels, healthcare devices, smart home devices, as well as industrial appliances.

Solomon Systech (International) Limited was founded in 1999 and is headquartered in Sha Tin, Hong Kong.

Stock analysis

Solomon Systech International Ltd (2878) currently trades at HK$0.2050, while our model-based Fair Value estimate is HK$0.1225, 40.2% below the price, so the stock looks overvalued today.

Valuation

Bull case: the DCF Models group reads highest at a median of HK$0.4300 per share, and 8 of the 10 models we run sit above the HK$0.2050 price.

Bear case: the Earnings-Based group reads lowest at HK$0.0400, and 2 of the 10 models stay below the price. Data coverage for this calculation is low.

Scenario range: HK$0.0945 (bear) to HK$0.1540 (bull), the price of HK$0.2050 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.

Quality & growth

The Quality Score stands at 49/100 (below-average quality), in the Technology sector.

Weak Growth: Revenue is shrinking: the last year, the last three and the last five years are all negative.

Solomon Systech International Ltd reported revenue of $93.3M in FY2025 versus $168M in FY2021, a compound −13.7%/yr. Reported net income was $4.0M in FY2025, compounding −35.8%/yr from FY2021.

Key figures

Market cap HK$512M (≈ $65.3M) Micro · P/E ratio 15.8 · P/S ratio 0.68 · Net margin 4.3% · Return on equity −2.8% · Return on assets (EBIT) 8.9% · Operating margin −12.1% · Revenue (TTM) $91.0M.

Competitive moat

Our AI-assisted moat analysis scores the competitive advantage at 16 out of 100 (medium confidence).

What moves the price

The share trades about 59% below its 52-week high and at its 52-week low, currently below its 200-day average.

For context, the median of 10 Technology peers we cover trades at −13% fair-value upside, at −40%, 2878 screens richer than that median.

Fair Value models

Bear HK$0.0945 Fair Value HK$0.1225 Bull HK$0.1540

Price HK$0.2050 · Downside -40.2%

Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds. Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.

Best data coverage

Owner Earnings HK$0.4100 HK$0.4300 HK$0.4600 78

Residual Income HK$0.2700 HK$0.2800 HK$0.3000 71

Growth-Adj P/E HK$0.2000 HK$0.2800 HK$0.3600 68

All 10 models by family

DCF Models

Owner Earnings HK$0.4100 HK$0.4300 HK$0.4600 78

Earnings-Based

Graham-Dodd HK$0.0900 HK$0.1900 HK$0.2500 65

PEG = 1.0 HK$0.0300 HK$0.0400 HK$0.0600 56

Multiples

P/E Multiple HK$0.2700 HK$0.3500 HK$0.4400 63

P/S Multiple HK$0.1600 HK$0.2200 HK$0.2700 58

P/B Multiple HK$0.3700 HK$0.4900 HK$0.6200 55

EV/EBITDA HK$0.3500 HK$0.3600 HK$0.3700 67

Asset-Based

NCAV (Graham) HK$0.2700 HK$0.4100 HK$0.5100 55

Economic Profit

Residual Income HK$0.2700 HK$0.2800 HK$0.3000 71

Growth Earnings

Growth-Adj P/E HK$0.2000 HK$0.2800 HK$0.3600 68

Open the full fair value analysis →

Quality Score breakdown

Overall quality 49/100

It rates the business: profits, how they develop, real cash, balance sheet, investing and share count.

Profitability 31

How much profit the company makes from its sales and capital

Quality Growth 16

Are margins and returns getting better?

Cashflow 10

Do the profits arrive as real cash?

Financial strength 100

Debt, balance sheet and risk of trouble

Investment 82

Does it invest with discipline instead of growing at any price?

Low Volatility 69

How calm the share price moves, does not count

Price momentum 6

Price momentum of the last 3 to 12 months, does not count

Near the 52-week high 0

Distance to the 52-week high, does not count

New shares 82

Buys back shares or issues new ones?

Open the full quality analysis →

Revenue & earnings trend

Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card. 14/100

Revenue is shrinking: the last year, the last three and the last five years are all negative.

Revenue growth 1 year

−17.8%

Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.

−21.2%

Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.

−5.1%

Start year 2020 (pandemic). Over 10 years: +2.8% a year

Revenue growth 22 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.

−0.7%

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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.

−25.7%

Earnings growth per share plus dividend.

Earnings per share, growth per year−25.7%

Dividend (yield on the price)0.0%

Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.4% → −3%

2878 screens overvalued: fair value 40% below the price. Compare with NVIDIA Corporation →

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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Semiconductors · 368 stocks

Beats the industry median on 5/10 measures

A mixed picture versus its industry peers.

Valuation

Quality Score 49 · Below median

Fair Value upside −40.2% · Above median

Profitability

Return on assets 2.5% · Below median

Net margin (12 months) −4.3% · Bottom 25%

Operating margin (12 months) −12.1% · Bottom 25%

Growth and dividend

Revenue growth (quarter YoY) −4.8% · Bottom 25%

Valuation Multiplesvs Semiconductors median · lower = cheaper

P/E (12 months) 15.8× · Cheapest 25%

P/B 0.46× · Cheapest 25%

P/S (12 months) 0.72× · Cheapest 25%

PEG 0.79× · Cheaper than median

Strength profile in five axes (Snowflake)

This stock

Sector peers

VALUE (fair-value potential)0 · sector 0

FUTURE (revenue growth)0 · sector 100

PAST (return on equity)0 · sector 27

HEALTH (low debt)100 · sector 96

DIVIDEND (yield)0 · sector 18

VALUE 0: the price sits above our fair-value range.

Context: sector, industry, market

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Semiconductors stocks, each showing price versus our Fair Value estimate.

Stock	Price	Fair Value	vs Fair Value	Compare
Taiwan Semiconductor Manufacturing Company TSM	$398.63	$446.74	+12%	vs 2878
SK hynix Inc 000660	1,472,000 KRW	1,559,800 KRW	+6%	vs 2878
NVIDIA Corporation NVDA	$202.06	$198.56	−2%	vs 2878
Broadcom Inc AVGO	$322.23	$300.84	−7%	vs 2878
Intel Corporation INTC	$59.97	$52.14	−13%	vs 2878
Micron Technology, Inc MU	$833.59	$619.48	−26%	vs 2878
Marvell Technology, Inc MRVL	$171.41	$87.64	−49%	vs 2878
Advanced Micro Devices, Inc AMD	$466.84	$148.70	−68%	vs 2878
Texas Instruments Incorporated TXN	$302.02	$81.25	−73%	vs 2878
Arm Holdings ARM	$196.79	$45.16	−77%	vs 2878

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Solomon Systech International Ltd: fair value per Fair Value Calculator

<a href="https://www.fairvalue-calculator.com/stock/2878?utm_source=embed&amp;utm_medium=badge" target="_blank" rel="nofollow noopener"><img src="https://www.fairvalue-calculator.com/embed/2878.HK.svg" width="360" height="84" alt="Solomon Systech International Ltd: fair value per Fair Value Calculator" style="border:0;max-width:100%" loading="lazy"></a>

Cite: Fair Value Calculator (2026). "Solomon Systech International Ltd Fair Value". https://www.fairvalue-calculator.com/stock/2878

Frequently asked questions

Is Solomon Systech International Ltd (2878) overvalued or undervalued?

As of Nov 2, 2026, our model estimates a fair value of HK$0.1225 versus a price of HK$0.2050, about 40% lower (overvalued).

What is the fair value of 2878?

Our model-based fair value for Solomon Systech International Ltd is HK$0.1225 (as of Nov 2, 2026), built from audited fundamentals. The current price: HK$0.2050.

What is the quality score of 2878?

Solomon Systech International Ltd has a Quality Score of 49/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.

What is the price target for Solomon Systech International Ltd (2878)?

Our model-based price target is the fair value of HK$0.1225 (as of Nov 2, 2026) from 10 valuation models. Cautious scenario HK$0.0945, optimistic scenario HK$0.1540. It is a calculation from audited fundamentals, not an analyst target.

What is the Solomon Systech International Ltd stock forecast for 2026?

Our models put fair value at HK$0.1225, about 40% lower versus a price of HK$0.2050 (overvalued). Cautious scenario HK$0.0945, optimistic scenario HK$0.1540. The calculation is refreshed regularly with new filings.

What is the revenue of Solomon Systech International Ltd (2878)?

Solomon Systech International Ltd reported trailing-twelve-month revenue of about $91.0M (latest available figure, as of Nov 2, 2026).

What is the intrinsic value of Solomon Systech International Ltd (2878)?

Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Solomon Systech International Ltd it is HK$0.1225 per share (as of Nov 2, 2026), against a price of HK$0.2050. It is the blended result of 10 valuation models (cash flow, earnings, asset, dividend).

Is Solomon Systech International Ltd stock overvalued or undervalued in 2026?

As of Nov 2, 2026, 2878 trades above its calculated fair value: price HK$0.2050, fair value HK$0.1225, a gap of about −40% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.

Is fair value the same as the market price of 2878?

No. The price is what the market pays today (HK$0.2050); the fair value is what the company's own numbers justify (HK$0.1225). For Solomon Systech International Ltd the two are HK$0.0825 per share apart. That gap is exactly why we show both numbers side by side.

How much is Solomon Systech International Ltd worth?

The market values Solomon Systech International Ltd at about HK$512M (market capitalisation, as of Nov 2, 2026). Per share that is HK$0.2050; our models calculate a fair value of HK$0.1225 per share.

What do the bullish and bearish scenarios say about 2878?

Our models span a range for Solomon Systech International Ltd: cautious scenario HK$0.0945, base HK$0.1225, optimistic HK$0.1540 per share (as of Nov 2, 2026, price HK$0.2050). The range comes from different growth and margin assumptions, not from analyst opinions.

What is the P/E ratio of 2878?

Solomon Systech International Ltd trades at a price-to-earnings ratio of 15.8 (as of Nov 2, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of HK$0.1225 is built from several models across several years. Other multiples: PEG 0.8, P/B 0.5, P/S 0.7.

What is the PEG ratio of 2878?

The PEG ratio of Solomon Systech International Ltd is 0.79 (P/E divided by earnings growth, as of Nov 2, 2026). That is below 1, so growth is priced more cheaply than the earnings multiple alone suggests.

How solid is the balance sheet of Solomon Systech International Ltd (2878)?

Balance-sheet figures for Solomon Systech International Ltd (as of Nov 2, 2026): return on equity −2.8%. They feed the Quality Score of 49/100, which measures business quality independently of the share price.

How far is 2878 from its 52-week high?

Solomon Systech International Ltd trades at HK$0.2050, about 59% below its 52-week high of HK$0.4950 and at the low of HK$0.2050 (as of Nov 2, 2026). Distance from the high says nothing about value: that is what the fair value of HK$0.1225 is for.

Which stocks are comparable to Solomon Systech International Ltd?

From the same area (Technology) we also value NVIDIA Corporation, Taiwan Semiconductor Manufacturing Company, Broadcom Inc, Micron Technology, Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.

Is Solomon Systech International Ltd stock attractive at the current price?

The data as of Nov 2, 2026: price HK$0.2050, calculated fair value HK$0.1225 (−40%), Quality Score 49/100, from 10 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.

How is the fair value of 2878 calculated?

We run Solomon Systech International Ltd through 10 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of HK$0.1225, with the spread shown as a cautious and an optimistic scenario.

Is it still worth investing in stocks now?

The global stock market currently sits 15.2 % above its aggregate fair value. Solomon Systech International Ltd itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.

What is the share price of Solomon Systech International Ltd (2878)?

The closing price on Nov 2, 2026 was HK$0.2050. Our model-based fair value is HK$0.1225, about 40% lower (overvalued). We carry closing prices from our data provider, not a live tick.

What should I pay attention to with Solomon Systech International Ltd right now?

The price sits above even our optimistic bull case (HK$0.1540). The favourable scenario is already priced in. Weak quality (49/100) and above fair value at the same time, the margin of safety is missing on both counts. The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.

Key figures of Solomon Systech International Ltd

How large is the market capitalisation of Solomon Systech International Ltd (2878)?

The market capitalisation of Solomon Systech International Ltd is HK$512M (≈ $65.3M). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.

What is the P/S ratio of Solomon Systech International Ltd (2878)?

The price-to-sales ratio of Solomon Systech International Ltd is 0.68 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.

What is the net margin of Solomon Systech International Ltd (2878)?

The net margin of Solomon Systech International Ltd is 4.3% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.

What is the return on equity of Solomon Systech International Ltd (2878)?

The return on equity (ROE) of Solomon Systech International Ltd is −2.8% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.

What is the EBIT return on assets of Solomon Systech International Ltd (2878)?

On an EBIT basis the return on assets of Solomon Systech International Ltd is 8.9% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.

What is the operating margin of Solomon Systech International Ltd (2878)?

The operating margin of Solomon Systech International Ltd is −12.1% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.

How fast is revenue growing at Solomon Systech International Ltd (2878)?

Revenue at Solomon Systech International Ltd is growing −4.8% versus a year earlier (3y avg −21.2%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.

How fast are earnings growing at Solomon Systech International Ltd (2878)?

Earnings per share at Solomon Systech International Ltd are growing −99.0% versus a year earlier. How much earnings per share grew versus a year earlier.

How much free cash flow does Solomon Systech International Ltd (2878) generate?

The free cash flow of Solomon Systech International Ltd is −$112K (fiscal year 2025). The cash truly left after running and investing in the business, this is what pays dividends and buybacks.

How much net cash does Solomon Systech International Ltd (2878) hold?

Solomon Systech International Ltd holds more cash than debt, $104M net (fiscal year 2025). The company holds more cash than debt, a safety cushion.

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