Solomon Systech (International) Ltd. (2878) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

China Electronics Huada Technology Co. Ltd.

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Solomon Systech (International) Ltd.

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HG Semiconductor Ltd.

Xinte Energy Co., Ltd.

Xinyi Solar Holdings Ltd.

Solargiga Energy Holdings Ltd.

Why is Solomon Systech (International) Ltd. ?

High Management Efficiency with a high ROE of 18.71%

Company has very low debt and has enough cash to service the debt requirements

High Debt company with Weak Long Term Fundamental Strength

Negative results in Dec 25

OPERATING CASH FLOW(Y) Lowest at HKD 205.65 MM
ROCE(HY) Lowest at 2.89%
DEBTORS TURNOVER RATIO(HY) Lowest at 4.34 times

With ROE of 4.68%, it has a Fair valuation with a 0.88 Price to Book Value

Over the past year, while the stock has generated a return of 7.79%, its profits have fallen by -51.8%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Solomon Systech (International) Ltd. should be less than 10%
Overall Portfolio exposure to Other Electrical Equipment should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Electrical Equipment)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Solomon Systech (International) Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Solomon Systech (International) Ltd.

7.79%

0.32

47.34%

Hang Seng Hong Kong

8.76%

0.45

19.63%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-2.45%

EBIT Growth (5y)

15.97%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.78

Sales to Capital Employed (avg)

1.30

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

37.14%

ROE (avg)

18.71%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.88

EV to EBIT

20.81

EV to EBITDA

3.05

EV to Capital Employed

0.39

EV to Sales

0.11

PEG Ratio

Dividend Yield

ROCE (Latest)

1.87%

ROE (Latest)

4.68%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -12.61% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 3.93 times

-15What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at HKD 205.65 MM

ROCE(HY)

Lowest at 2.89%

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.34 times

OPERATING PROFIT(Q)

Lowest at HKD -18.52 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -5.02 %

PRE-TAX PROFIT(Q)

Lowest at HKD -0.67 MM

NET PROFIT(Q)

Lowest at HKD 0.19 MM

EPS(Q)

Lowest at HKD 0

Here's what is working for Solomon Systech (International) Ltd.

Inventory Turnover Ratio

Highest at 3.93 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -12.61% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Solomon Systech (International) Ltd.

Pre-Tax Profit

At HKD -0.67 MM has Fallen at -103.5%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (HKD MM)

Debtors Turnover Ratio

Lowest at 4.34 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Operating Cash Flow

Lowest at HKD 205.65 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (HKD MM)

Operating Profit

Lowest at HKD -18.52 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (HKD MM)

Operating Profit Margin

Lowest at -5.02 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at HKD -0.67 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (HKD MM)

Net Profit

Lowest at HKD 0.19 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (HKD MM)

Net Profit

Fallen at -99.06%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (HKD MM)

EPS

Lowest at HKD 0

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (HKD)