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Shanghai Fudan Microelectronics Group Co Ltd Class H (HK:1385)
:1385

Shanghai Fudan Microelectronics Group Co (1385) AI Stock Analysis

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HK:1385

Shanghai Fudan Microelectronics Group Co

(1385)

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Neutral 66 (OpenAI - 5.2)
Rating:66Neutral
Price Target:
HK$49.00
▲(28.61% Upside)
The score is driven primarily by solid financial quality and renewed TTM revenue growth with manageable leverage, supported by strong technical trend signals. However, the rating is held back by profitability normalization, historically volatile cash conversion, and a very high P/E that leaves limited valuation support.
Positive Factors
Diversified product and end-market exposure
Fudan supplies security ICs, smart cards and microcontrollers across telecom, banking, public transport and smart energy. This diversified product set and multi‑vertical exposure creates durable revenue streams, reduces single‑sector risk and supports steady demand over cycles.
Resumed revenue growth
TTM revenue growth of ~10.9% after a flat 2023 signals a return of top‑line momentum. Sustained revenue expansion enhances scale for R&D and manufacturing, improves bargaining with customers and suppliers, and supports medium‑term market share gains in secure IC markets.
Manageable leverage and equity growth
Low net leverage and rising equity give the company financial flexibility to fund capex and R&D without heavy external financing. A positive ROE indicates returns on invested capital, supporting sustainable investment in product development and partnerships over the next several quarters.
Negative Factors
Profitability normalization and margin compression
EBIT and margins have meaningfully declined versus prior years, indicating reduced operating leverage or pricing pressure. If these pressures persist, the company may struggle to convert revenue growth into proportional earnings and cash flow, weakening long‑term profitability.
Volatile cash conversion
Inconsistent FCF and a history of a major cash outflow raise execution and working‑capital risks. Variable cash conversion impairs ability to self‑fund capex, smooth R&D investment, or increase returns to shareholders, making growth more dependent on precise timing of cash flows.
Declining EPS trend
Negative EPS growth despite revenue gains points to margin erosion, higher costs, or non‑operating drains that are reducing per‑share earnings. A sustained decline in EPS undermines reinvestment capacity and shareholder returns and signals weaker underlying earnings power.

Shanghai Fudan Microelectronics Group Co (1385) vs. iShares MSCI Hong Kong ETF (EWH)

Shanghai Fudan Microelectronics Group Co Business Overview & Revenue Model

Company DescriptionShanghai Fudan Microelectronics Group Co., Ltd. (1385) is a leading semiconductor company based in China, primarily engaged in the research, development, and manufacturing of integrated circuits (ICs) and microelectronic products. The company operates in various sectors including smart card technology, security ICs, and smart energy solutions. Fudan Microelectronics focuses on delivering innovative products that cater to the needs of telecommunications, finance, public transportation, and other industries requiring secure and efficient microelectronic solutions.
How the Company Makes MoneyShanghai Fudan Microelectronics Group generates revenue through the sale of its semiconductor products, which include security ICs, smart cards, and microcontrollers. The company primarily caters to sectors like telecommunications, banking, and public transportation. Key revenue streams include direct sales of integrated circuits to manufacturers and system integrators, as well as licensing agreements for its technology. Additionally, strategic partnerships with technology firms and government projects in the smart city and IoT sectors contribute to its earnings. The company benefits from a growing demand for secure electronic payment solutions and energy-efficient technologies, further enhancing its revenue potential.

Shanghai Fudan Microelectronics Group Co Financial Statement Overview

Summary
Solid overall fundamentals: revenue has resumed growth (TTM +10.94%) and leverage is manageable (debt-to-equity ~0.25–0.29). Offsetting this, profitability has normalized materially versus 2022–2023 (lower EBIT, compressed margins) and cash-flow history is volatile with weaker cash conversion (TTM free cash flow less than half of net income).
Income Statement
72
Positive
Revenue remains on a solid upward path, with TTM (Trailing-Twelve-Months) growth of 10.94% following a flat 2023 and modest 2024 growth. Profitability is still healthy (TTM gross margin ~50% and net margin ~12%), but margins have compressed meaningfully versus 2022–2023 levels and EBIT profitability is notably lower in TTM than prior years—suggesting a tougher pricing/cost environment and weaker operating leverage.
Balance Sheet
76
Positive
Leverage looks manageable with debt-to-equity around ~0.25–0.29 in the most recent periods, and equity has grown steadily over time. Returns to shareholders remain positive (TTM return on equity ~7.9%), but have come down from the much stronger 2021–2023 range, reflecting lower earnings power rather than balance-sheet stress.
Cash Flow
63
Positive
Cash generation has improved sharply: TTM operating cash flow is strong and free cash flow rebounded to a solid positive level, with very large TTM free-cash-flow growth off a weak 2024 base. However, cash conversion is still not consistently robust—free cash flow is less than half of net income in TTM, and prior years show volatility including a significant cash outflow year (2023), which raises execution and working-capital/capex timing risk.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue4.01B3.59B3.54B3.54B2.58B1.69B
Gross Profit1.98B1.83B2.04B2.29B1.47B769.78M
EBITDA491.72M652.51M1.02B1.30B791.17M336.08M
Net Income475.60M572.60M719.49M1.08B514.47M132.87M
Balance Sheet
Total Assets9.28B9.04B8.41B6.11B4.17B2.68B
Cash, Cash Equivalents and Short-Term Investments1.21B1.23B1.03B1.27B1.19B440.70M
Total Debt1.56B1.69B1.52B102.34M101.69M50.68M
Total Liabilities2.48B2.50B2.45B957.72M798.11M566.09M
Stockholders Equity6.18B5.89B5.30B4.53B3.14B1.93B
Cash Flow
Free Cash Flow447.93M99.51M-1.56B-461.24M37.71M2.01M
Operating Cash Flow1.04B732.47M-708.17M321.29M602.20M239.75M
Investing Cash Flow-444.49M-754.00M-731.60M-132.51M-1.18B-215.22M
Financing Cash Flow-258.63M88.63M1.31B504.59M718.81M-11.29M

Shanghai Fudan Microelectronics Group Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price38.10
Price Trends
50DMA
45.02
Positive
100DMA
43.15
Positive
200DMA
36.09
Positive
Market Momentum
MACD
1.26
Positive
RSI
56.04
Neutral
STOCH
71.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1385, the sentiment is Positive. The current price of 38.1 is below the 20-day moving average (MA) of 49.19, below the 50-day MA of 45.02, and above the 200-day MA of 36.09, indicating a bullish trend. The MACD of 1.26 indicates Positive momentum. The RSI at 56.04 is Neutral, neither overbought nor oversold. The STOCH value of 71.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1385.

Shanghai Fudan Microelectronics Group Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
HK$61.08B78.037.85%0.20%12.62%-4.75%
64
Neutral
HK$2.68B6.4317.96%6.98%-18.35%-6.00%
63
Neutral
HK$2.64B13.5216.76%5.19%34.68%
62
Neutral
HK$41.69B169.581.55%0.69%-0.64%-39.74%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
54
Neutral
HK$199.58B3,590.000.12%0.23%19.15%-94.32%
41
Neutral
HK$85.37M-1.13-41.46%-26.02%-4977.27%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1385
Shanghai Fudan Microelectronics Group Co
50.50
33.75
201.55%
HK:0522
ASMPT Ltd
104.20
32.49
45.30%
HK:1347
Hua Hong Semiconductor Ltd.
107.70
82.40
325.69%
HK:8490
Niche-Tech Semiconductor Materials Limited
0.12
-0.05
-27.11%
HK:0085
China Electronics Huada Technology Company Limited
1.32
0.09
7.32%
HK:2149
BaTeLab Co., Ltd.
42.82
14.77
52.66%

Shanghai Fudan Microelectronics Group Co Corporate Events

Shanghai Fudan Microelectronics Flags Sharp 2025 Profit Slump Despite Revenue Growth
Jan 23, 2026

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.

Guosheng Investment to Become Largest Shareholder of Shanghai Fudan Microelectronics in RMB 5.14 Billion Deal
Dec 23, 2025

Shanghai Fudan Microelectronics Group Company Limited announced that shareholder Fuxin Fangao has formally signed a share transfer agreement with Shanghai Guosheng Investment, under which Guosheng will acquire 106.73 million A shares, or 12.99% of the company’s existing share capital, for RMB 5.14 billion at RMB 48.20 per share. The consideration will be paid in three instalments via a mix of direct and escrowed payments, with completion subject to conditions including a formal, transferee-approved cooperation agreement between the company and Fudan University to establish an Industry-Academia-Research Joint Research and Development Platform. Upon registration of the shares in Guosheng’s name, expected by 30 June 2026, Guosheng will become the company’s largest shareholder, assuming full shareholder rights and obligations. The deal is structured to preserve and deepen the strategic collaboration with Fudan University, including joint research teams, shared experimental resources and ongoing talent and funding support, potentially reinforcing the company’s innovation pipeline and integrating the new largest shareholder into its long-term R&D strategy.

The most recent analyst rating on (HK:1385) stock is a Hold with a HK$39.00 price target. To see the full list of analyst forecasts on Shanghai Fudan Microelectronics Group Co stock, see the HK:1385 Stock Forecast page.

Shanghai Fudan Microelectronics Announces Board and Governance Changes
Dec 2, 2025

Shanghai Fudan Microelectronics Group Co. announced the successful passing of all resolutions during its 2025 second Extraordinary General Meeting, including significant changes in its board of directors and committee compositions. The company appointed Mr. Zhang Yu Ming as an Independent Director and Mr. Shen Mingjie as an employee director, while also abolishing its Supervisory Committee, transferring its functions to the Audit Committee, which may streamline governance and enhance operational efficiency.

The most recent analyst rating on (HK:1385) stock is a Hold with a HK$39.00 price target. To see the full list of analyst forecasts on Shanghai Fudan Microelectronics Group Co stock, see the HK:1385 Stock Forecast page.

Shanghai Fudan Microelectronics Announces Board Composition and Committee Roles
Dec 2, 2025

Shanghai Fudan Microelectronics Group Company Limited has announced the composition of its board of directors and the roles of its members. The board has established five committees, each with specific responsibilities, to enhance governance and strategic oversight, potentially impacting the company’s operational efficiency and stakeholder engagement.

The most recent analyst rating on (HK:1385) stock is a Hold with a HK$39.00 price target. To see the full list of analyst forecasts on Shanghai Fudan Microelectronics Group Co stock, see the HK:1385 Stock Forecast page.

Shanghai Fudan Microelectronics Announces Major Share Transfer Agreement
Nov 16, 2025

Shanghai Fudan Microelectronics Group Co., Ltd. announced a significant share transfer agreement, where Shanghai Guosheng Group Investment Co., Ltd. will acquire 12.99% of the company’s shares from Shanghai Fudan Fangao IC Technology Co. Ltd. This transaction will make Guosheng Investment the largest shareholder, although the company will remain without a controlling shareholder. The transfer is subject to regulatory approvals and does not impact the company’s operational management, indicating stability for stakeholders.

The most recent analyst rating on (HK:1385) stock is a Buy with a HK$50.00 price target. To see the full list of analyst forecasts on Shanghai Fudan Microelectronics Group Co stock, see the HK:1385 Stock Forecast page.

Shanghai Fudan Microelectronics Announces 2025 Extraordinary General Meeting
Nov 14, 2025

Shanghai Fudan Microelectronics Group Co has announced the convening of its 2025 second extraordinary general meeting to discuss several key proposals. These include the utilization of surplus funds from the A Share Offering for working capital, the abolition of the Supervisory Committee, amendments to the Articles of Association, and the election of a new Independent Director. The meeting will also address the management rules for proceeds, related party transactions, external investments, and guarantees, which could impact the company’s governance and operational efficiency.

The most recent analyst rating on (HK:1385) stock is a Buy with a HK$50.00 price target. To see the full list of analyst forecasts on Shanghai Fudan Microelectronics Group Co stock, see the HK:1385 Stock Forecast page.

Shanghai Fudan Microelectronics Proposes New Independent Director Appointment
Nov 11, 2025

Shanghai Fudan Microelectronics Group Company Limited announced the proposed appointment of Mr. Zhang Yu Ming as an Independent Director. Mr. Zhang has confirmed his independence according to the relevant listing rules, and there are no factors affecting his independence. This appointment is part of the company’s ongoing efforts to strengthen its board with experienced and independent oversight.

The most recent analyst rating on (HK:1385) stock is a Buy with a HK$50.00 price target. To see the full list of analyst forecasts on Shanghai Fudan Microelectronics Group Co stock, see the HK:1385 Stock Forecast page.

Shanghai Fudan Microelectronics Announces Key Board Appointments
Nov 10, 2025

Shanghai Fudan Microelectronics Group Co., Ltd has announced the proposed appointment of Mr. Zhang Yu Ming as an Independent Director and Mr. Shen Mingjie as an Employee Director. Mr. Zhang, with a strong academic and professional background in microelectronics, is expected to bring valuable insights and independence to the board. Mr. Shen, who has extensive experience in integrated circuit design, will serve as an employee director, reflecting the company’s commitment to diverse representation on its board. These appointments are seen as strategic moves to enhance the company’s governance and operational expertise, potentially strengthening its position in the microelectronics industry.

The most recent analyst rating on (HK:1385) stock is a Buy with a HK$50.00 price target. To see the full list of analyst forecasts on Shanghai Fudan Microelectronics Group Co stock, see the HK:1385 Stock Forecast page.

Shanghai Fudan Microelectronics Proposes Amendments to Articles of Association
Oct 30, 2025

Shanghai Fudan Microelectronics Group Company Limited has announced proposed amendments to its Articles of Association, which will be subject to shareholder approval at an upcoming general meeting. This move is part of the company’s efforts to align its governance structure with relevant laws and regulations, potentially impacting its operational framework and stakeholder relationships.

The most recent analyst rating on (HK:1385) stock is a Hold with a HK$44.00 price target. To see the full list of analyst forecasts on Shanghai Fudan Microelectronics Group Co stock, see the HK:1385 Stock Forecast page.

Shanghai Fudan Microelectronics Reports Q3 2025 Financial Results
Oct 28, 2025

Shanghai Fudan Microelectronics Group Co. announced its unaudited consolidated financial results for the third quarter of 2025, showing a revenue increase of 33.28% compared to the same period last year. Despite the revenue growth, the company experienced a decline in total profit and net profits attributable to shareholders, with significant investments in research and development impacting profitability. The announcement highlights the company’s ongoing commitment to innovation, though it faces challenges in maintaining profit margins.

The most recent analyst rating on (HK:1385) stock is a Hold with a HK$44.00 price target. To see the full list of analyst forecasts on Shanghai Fudan Microelectronics Group Co stock, see the HK:1385 Stock Forecast page.

Shanghai Fudan Microelectronics Restructures Governance Framework
Oct 28, 2025

Shanghai Fudan Microelectronics Group Company Limited announced the abolition of its Supervisory Committee, transferring its duties to the Audit Committee of the Board. This change is part of a broader initiative to amend the company’s Articles of Association and align with new regulatory requirements, aiming to enhance corporate governance and operational efficiency.

The most recent analyst rating on (HK:1385) stock is a Hold with a HK$44.00 price target. To see the full list of analyst forecasts on Shanghai Fudan Microelectronics Group Co stock, see the HK:1385 Stock Forecast page.

Shanghai Fudan Microelectronics Enhances Governance with New Nomination Committee
Oct 28, 2025

Shanghai Fudan Microelectronics Group Company Limited has established a Nomination Committee to enhance its corporate governance structure by regulating the selection of directors and senior management. This initiative aims to optimize the board’s composition and improve decision-making processes, potentially strengthening the company’s position in the competitive microelectronics industry.

The most recent analyst rating on (HK:1385) stock is a Hold with a HK$44.00 price target. To see the full list of analyst forecasts on Shanghai Fudan Microelectronics Group Co stock, see the HK:1385 Stock Forecast page.

Shanghai Fudan Microelectronics Strengthens Governance with New Audit Committee
Oct 28, 2025

Shanghai Fudan Microelectronics Group Company Limited has established an Audit Committee to enhance the decision-making capabilities of its Board and strengthen corporate governance. This committee will oversee both internal and external audits, evaluate financial disclosures, and ensure compliance with relevant laws and regulations. The formation of this committee is expected to improve the company’s operational oversight and align with governance standards, potentially boosting stakeholder confidence.

The most recent analyst rating on (HK:1385) stock is a Hold with a HK$44.00 price target. To see the full list of analyst forecasts on Shanghai Fudan Microelectronics Group Co stock, see the HK:1385 Stock Forecast page.

Shanghai Fudan Microelectronics Enhances Governance with Revised Committee Rules
Oct 28, 2025

Shanghai Fudan Microelectronics Group Co., Ltd. has revised its implementation rules for the Remuneration and Evaluation Committee of the Board, aiming to enhance its corporate governance structure. The committee is tasked with setting appraisal standards and reviewing remuneration policies for directors and senior management, which is expected to streamline management processes and align executive compensation with company performance, potentially impacting stakeholder confidence positively.

The most recent analyst rating on (HK:1385) stock is a Hold with a HK$44.00 price target. To see the full list of analyst forecasts on Shanghai Fudan Microelectronics Group Co stock, see the HK:1385 Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jan 06, 2026