Everbright Securities has released a research report stating that SHANGHAI FUDAN (01385) has issued a positive profit alert for the first three quarters of 2026, expecting to achieve operating revenue of RMB 3.450 billion to RMB 3.650 billion, representing a year-on-year increase of 14.1% to 20.7%; net profit attributable to shareholders of RMB 950 million to RMB 1.150 billion, representing a year-on-year increase of 187.6% to 248.2%; and non-GAAP net profit attributable to shareholders of RMB 700 million to RMB 850 million, representing a year-on-year increase of 131.0% to 180.5%. The investment bank maintains its "Accumulate" rating on the company, and expects the company's net profit attributable to shareholders for 2026 to 2028 to be RMB 1.15 billion, RMB 1.25 billion, and RMB 1.58 billion, respectively.
Strong Growth in First Three Quarters with Continuous Profitability Improvement
SHANGHAI FUDAN achieved rapid growth in the first three quarters, primarily benefiting from a recovery in industry sentiment, growing downstream demand, and continuous product iteration. During the first three quarters, the company's revenue and overall gross margin across all product lines both increased, with the product mix continuing to optimize. Meanwhile, the company strengthened refined inventory management, leading to a significant year-on-year decline in inventory write-down losses, further unlocking profit elasticity. In the third quarter of 2026, the company expects to achieve operating revenue of RMB 1.225 billion to RMB 1.425 billion, representing a year-on-year increase of 3.3% to 20.2% and a quarter-on-quarter increase of 2.6% to 19.4%; non-GAAP net profit attributable to shareholders is expected to be RMB 288 million to RMB 438 million, representing a year-on-year increase of 138.7% to 262.9% and a quarter-on-quarter increase of 7.6% to 63.6%, with quarterly operating performance continuing its improving trend.
Accelerated New Product Iteration Opens Growth Space in Intelligent Computing Power and Emerging Scenarios
During the 2026 Industrial Expo National Chip Exhibition, the company showcased multiple product lines including programmable logic, memory, MCU, and smart appliances, continuously advancing new product iteration and expanding application boundaries. Among them, the Fudan Micro Qinglong JFMQL30TAI676H adopts a CPU+FPGA+AI multi-core heterogeneous fusion architecture, targeting high-throughput, low-latency scenarios such as image and video processing, wireless communications, and data analysis, driving the product's upgrade from traditional FPGA to a heterogeneous intelligent computing power platform. Additionally, the company launched the Agent intelligent FPGA development platform, covering code generation, simulation verification, and deployment delivery, further enhancing the development ecosystem. The Fudan Micro Zhuque JFMZQ52DRG1156H integrates SoC, baseband processing, and RF direct sampling capabilities, supporting 5G-A and low-orbit satellite broadband access, expanding applications in satellite communications, emergency communications, and drone image transmission. Furthermore, the company's memory, MCU, and smart appliance chips continue to extend into automotive electronics, smart photovoltaics, and new energy charging, with diverse application scenarios expected to contribute new growth.
High-End FPGA and Satellite Communication-Related Products Expected to Continue Benefiting
In the third quarter of 2026, the company's revenue and gross profit across all product lines grew comprehensively, with new products such as FPGA, automotive-grade MCU, and NFC/RFID continuing to be introduced. In the long term, the company continues to advance product upgrades in the high-end FPGA segment and actively extends into emerging applications such as AI heterogeneous computing, satellite communications, automotive electronics, and new energy. The investment bank believes that with the increasing proportion of high-margin products and product mix optimization, the company's profit elasticity is expected to be further released.
Earnings Forecast, Valuation, and Rating
The investment bank expects the company's net profit attributable to shareholders for 2026 to 2028 to be RMB 1.15 billion, RMB 1.25 billion, and RMB 1.58 billion, respectively, adjusted by -10%, +2%, and +6% compared with the previous forecast, mainly due to adjustments in fair value change gains, corresponding to year-on-year growth rates of +396%, +8%, and +26%, respectively. Based on the current closing price of HKD 24.84, the company's price-to-earnings ratios for 2026 and 2027 are 15 times and 14 times, respectively. Considering the accelerated domestic substitution of FPGA chips and the accelerating development of the commercial aerospace and low-orbit satellite industry chains, the company's high-end FPGA and satellite communication-related products are expected to continue benefiting, and the investment bank maintains its "Accumulate" rating on SHANGHAI FUDAN.
Risk Warnings
Downstream demand falling short of expectations; technology iteration progress falling short of expectations; intensifying market competition risks; supply chain adjustment risks.
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