TREE NEWS update: Shanghai-listed Fudan Microelectronics said it expects net profit attributable to shareholders of 950 million to 1.15 billion yuan for the first three quarters, up 187.63% to 248.18% year on year, on revenue of 3.45 billion to 3.65 billion yuan, up 14.07% to 20.68%. Recurring net profit is seen at 700 million to 850 million yuan, up 130.97% to 180.47%. The company cited higher revenue and gross margins across product lines, a sharp drop in inventory write-downs and gains on strategic placement shares.
Fudan Microelectronics Guides 9M Profit Up 187.63%-248.18%
The striking gap between Fudan Microelectronics' revenue growth and its profit growth shows the earnings swing is driven less by demand than by margin repair and balance-sheet effects. Sharply lower inventory write-downs and gains on strategic placement shares are doing much of the work, which makes the quality of this beat the real question. For a chipmaker exposed to industrial and consumer cycles, the durability of gross-margin improvement matters more than the headline range. Whether that margin trend holds once one-off items fade is the open issue.
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