The Zhitong Finance App learned that Everbright Securities released a research report saying that Shanghai Fudan (01385) released a positive profit forecast for the first three quarters of 2026, which is expected to achieve operating income of 3.45 billion yuan to 3.65 billion yuan, an increase of 14.1% to 20.7%; net profit to mother of 950 million yuan to 1150 million yuan, an increase of 187.6% to 248.2% year on year; net profit after deducting non-return mother of 700 million yuan to 850 million yuan, an increase of 131.0% to 180.5% year on year. The bank maintains the company's “increase in holdings” rating. The company's net profit from 2026 to 2028 is estimated to be 1.15 billion yuan, 1.25 billion yuan, and 1.58 billion yuan, respectively.
The main views of Everbright Securities are as follows:
Results grew rapidly in the first three quarters, and profitability continued to improve
Shanghai's Fudan achieved rapid growth in the first three quarters, mainly benefiting from a recovery in industry sentiment, growth in downstream demand, and continuous product iteration. In the first three quarters, the company's revenue and comprehensive gross margin of all product lines grew, and the product structure continued to be optimized. At the same time, the company strengthened refined inventory management, and inventory price drop losses fell sharply year on year, further releasing profit elasticity.
In the third quarter of 2026, the company expects to achieve operating income of 1,225 million yuan to 1,425 billion yuan, up 3.3% to 20.2% year on year, and 2.6% to 19.4% month on month; net profit without return to mother is expected to be 288 million yuan to 438 million yuan, up 138.7% to 262.9% year on year, and 7.6% to 63.6% month on month, continuing the trend of improving operations in the single quarter.
Accelerating the iteration of new products, opening up room for growth with intelligent computing power and emerging scenarios
During the 2026 Industrial Fair Guoxin Exhibition, the company focused on showcasing multiple product lines such as programmable logic, storage, MCU and smart appliances, and continued to expand new product iterations and application boundaries.
Among them, the Fuwei Qinglong JFMQL30TAI676H uses a CPU+FPGA+AI multi-core heterogeneous fusion architecture to target high throughput and low latency scenarios such as image video, wireless communication, and data analysis, to promote product upgrades from traditional FPGA to heterogeneous intelligent computing power platforms. At the same time, the company launched the Agent intelligent FPGA development platform, covering code generation, simulation verification, deployment and delivery, and further improving the development ecosystem.
The Fuwei Suzaku JFMZQ52DRG1156H integrates SoC, baseband processing and direct RF acquisition capabilities, supports broadband access to 5G-A and low-orbit satellites, and expands applications such as satellite communications, emergency communications, and drone image transmission. Furthermore, the company's storage, MCU and smart appliance chips continue to expand into fields such as automotive electronics, smart photovoltaics, and new energy charging, and various application scenarios are expected to contribute additional volume.
High-end FPGA and satellite communication related products are expected to continue to benefit
The company's revenue and gross profit increased across all product lines in the third quarter of 2026, and new products such as FPGAs, automotive MCUs, and NFC/RFID continued to be introduced. Over the long term, the company continues to promote product upgrades in the high-end FPGA field, and actively expand into emerging applications such as AI heterogeneous computing, satellite communications, automotive electronics, and new energy sources. The bank believes that as the proportion of high-margin products increases and the product structure is optimized, the company's profit flexibility is expected to be further unleashed.
Profit forecasting, valuation and ratings
The bank expects the company's net profit to be 1.15 billion yuan, 1.25 billion yuan and 1.58 billion yuan respectively from 2026 to 2028, adjusted -10%, +2%, and +6% respectively from the previous forecast. Mainly due to fair value changes in earnings adjustments, the corresponding year-on-year growth rates were +396%, +8%, and +26%, respectively. Based on the current closing price of HK$24.84, the company's price-earnings ratios in 2026 and 2027 were 15 times and 14 times, respectively.
Considering the acceleration of domestic FPGA chip replacement and the accelerated development of the commercial aerospace and low-orbit satellite industry chain, the company's high-end FPGA and satellite communication related products are expected to continue to benefit, and the bank maintains Shanghai's Fudan “gain” rating.
Risk Alerts
Downstream demand falls short of expectations; technology iteration progress falls short of expectations; market competition increases risk; supply chain adjustment risk.