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Shanghai Fudan Microelectronics Flags Sharp 2025 Profit Slump Despite Revenue Growth

Story Highlights
  • Shanghai Fudan expects 2025 revenue to rise about 9%–12% while net profit drops by more than half.
  • Profit is squeezed by large inventory impairments, higher R&D write-offs and reduced tax and subsidy income despite growth in FPGA and MCU sales.
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Shanghai Fudan Microelectronics Flags Sharp 2025 Profit Slump Despite Revenue Growth

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Shanghai Fudan Microelectronics Group Co ( (HK:1385) ) has issued an announcement.

Shanghai Fudan Microelectronics has warned investors that, despite an expected 9.46%–12.25% year-on-year increase in 2025 revenue to about RMB3.93–4.03 billion, net profit attributable to shareholders is projected to plunge by roughly 50.58%–66.82% to RMB190–283 million, with an even steeper drop in profit after excluding non-recurring items. Management attributes the profit squeeze to sizable inventory impairment charges of around RMB250 million following strategic stockpiling amid international supply-chain uncertainty, a roughly RMB180 million increase in research and development expenses due to write-offs of capitalised projects unlikely to yield expected returns, and a reduction of about RMB90 million in other income after lower VAT deductions and government R&D subsidies; while certain product lines such as FPGA and MCU chips delivered strong growth and bolstered gross profit, intense competition in non-volatile memory and structural shifts in downstream demand have highlighted the costs of building supply-chain resilience, putting pressure on margins and underscoring the earnings volatility facing the company and its shareholders.

The most recent analyst rating on (HK:1385) stock is a Hold with a HK$47.00 price target. To see the full list of analyst forecasts on Shanghai Fudan Microelectronics Group Co stock, see the HK:1385 Stock Forecast page.

More about Shanghai Fudan Microelectronics Group Co

Shanghai Fudan Microelectronics Group Company Limited is a PRC-based semiconductor company listed in Hong Kong that designs and sells integrated circuit products. Its portfolio spans FPGA chips used in wired and wireless communications, satellite communications, video imaging, industrial control, artificial intelligence and high-reliability applications, as well as security and identification chips, RFID and sensor chips, non-volatile memory and MCU chips that serve automotive and white goods markets.

Average Trading Volume: 6,140,092

Technical Sentiment Signal: Strong Buy

Current Market Cap: HK$61.32B

See more data about 1385 stock on TipRanks’ Stock Analysis page.

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