Solomon Systech (International) Limited (2878) Fair Value & Analysis

Technology · HK · Market cap HK$787M

Below-average quality, and screening another 89% overvalued on our models.

What matters now

• The price sits above even our optimistic bull case (HK$0.0400). The favourable scenario is already priced in.
• Weak quality (40/100) and above fair value at the same time, the margin of safety is missing on both counts.
• A fairly wide model range (HK$0.0200 to HK$0.0400) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 5, 2026.

How to read this chart

60‑month range HK$0.2450 – HK$1.24 · fair‑value band HK$0.0200 – HK$0.0400 · the HK$0.2800 price screens above the HK$0.0300 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 5, 2026.

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Analysis

Solomon Systech (International) Limited (2878) currently trades at HK$0.2800, while our model-based Fair Value estimate is HK$0.0300, implying the stock looks roughly 89.3% overvalued today. We read business quality at 40/100 (below-average quality), in the Technology sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: medium).

Over the trailing twelve months, Solomon Systech (International) Limited generated revenue of HK$93.3M at a net margin of 4.3%. Revenue declined 8.2% year over year. It earns a return on equity of 2.9%. The balance sheet holds a net cash position of HK$104M. Fundamentals as of Aug 5, 2026

Our scenario range runs from HK$0.0200 (bear case) to HK$0.0400 (bull case); at HK$0.2800, the current price sits above that range. The share trades about 56% below its 52-week high, currently below its 200-day average. For context, the median of 10 Technology peers we cover trades at -62% fair-value upside, at -89%, 2878 screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Widest divergence: DCF Models (HK$0.0600) versus Earnings-Based (HK$0.0100). Highest evidence: Residual Income (76).

Key figures & financial health

Quality Score breakdown

About the company

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.

Full company description

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. 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.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

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

2878 screens 89% overvalued. Compare with NVIDIA Corporation →

Peer Group

Semiconductors · 372 stocks

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.

Valuation Multiples vs Semiconductors median · lower = cheaper

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

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

Values & ESG

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

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

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Frequently asked questions

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.