Shanghai, Jan 26, 2026, 09:59 (CST) — Regular session underway
- Shanghai Fudan Microelectronics Group Co., Ltd. Class A shares slipped roughly 0.6% in morning trading.
- The chip designer projected a 51%–67% plunge in net profit for 2025, even though revenue is expected to rise.
- Traders are keeping an eye on inventory charges and the March annual report schedule for confirmation.
Shares of Shanghai Fudan Microelectronics Group Co., Ltd. Class A (688385.SS) dipped Monday morning after the chipmaker warned its 2025 net profit might plunge up to 67%.
By mid-morning in Shanghai, the stock was down 0.6% at 85.39 yuan.
The guidance is crucial now as China’s STAR Market enters the peak period for annual earnings forecasts, with traders leaning on these early cues to adjust expectations stock by stock.
For companies that have already seen solid gains, the focus has shifted from the narrative to the balance sheet.
The chip-heavy Star 50 index has surged 16% in the last month, despite investors closely monitoring state-linked ETF flows and stricter leverage rules.
“If enough people are watching what this player is doing, its actions could be enough to alter expectations,” said Chen Da, founder of Dante Research.
This caution has investors quick to sell when earnings projections disappoint. The Business Times
Fudan’s annual forecast projects 2025 revenue between 3.93 billion and 4.03 billion yuan, marking a 9% to 12% rise from last year. Yet net profit attributable to shareholders is expected to plunge 51% to 67%, landing between 190 million and 283 million yuan. Profit excluding one-offs is set to shrink even more, down 60% to 73% to a range of 125 million to 185 million yuan.
The company noted mixed demand across sectors: FPGA chips—used in communications and industrial control—and MCU chips powering various devices are seeing growth in some areas. Meanwhile, non-volatile memory products suffered as competition intensified.
Fudan flagged inventory write-down losses climbing to around 250 million yuan—an accounting hit when stock value falls below cost. R&D expenses rose about 180 million yuan, and other income dropped roughly 90 million yuan. All figures remain unaudited.
Fudan focuses on designing, developing, and testing integrated circuits, according to Reuters company data.
Its business covers chip design, sales, and integrated circuit testing services.
A Securities Times Databao tally released Monday found 121 STAR Market companies have issued 2025 earnings forecasts so far, with 11 warning of profit drops.
Among them, several electronics firms expect profit gains, highlighting the sector’s patchy performance as earnings season ramps up.
Traders eyeing Fudan are zeroing in beyond the revenue range, digging into the inventory build—was it strategic, how fast will it clear, and will pricing pressure in memory products ease?
Another key point is R&D, especially after the company flagged project write-offs.
The range remains an estimate, with the potential for more write-downs or weaker downstream demand to push results closer to the low end.
If increased R&D spending fails to boost volume and mix, margins are likely to remain squeezed.
The next key event is the audited 2025 annual report, set for March 28, per Eastmoney’s disclosure schedule.
Investors will focus on the final inventory impact and early indications of 2026 orders for FPGA and MCU lines.
Related articles: Earnings Reports
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