Core Viewpoint - Shanghai Fudan (01385) reported a revenue of 1.19 billion yuan in Q3 2025, representing a year-on-year growth of 33.3% driven by increased FPGA product shipments [1][3] Financial Performance - Revenue breakdown for Q3 includes: - Security and identification chips: 240 million yuan - Non-volatile memory: 340 million yuan - Smart meter chips: 140 million yuan - FPGA and other chips: 440 million yuan - Testing services: 30 million yuan [1][3] - Gross margin improved to 61.1%, up 9 percentage points year-on-year and 5.5 percentage points quarter-on-quarter, primarily due to increased FPGA product shipments [1][3] - Operating profit reached 140 million yuan, a 98% increase year-on-year [1][3] - Net profit attributable to shareholders was 137 million yuan, with a non-recurring net profit of 121 million yuan, reflecting a year-on-year growth of 59.2% [1][3] - Non-recurring earnings per share were 0.16 yuan, compared to 0.10 yuan in the same period last year [1][3] Business Segments - FPGA business revenue grew by 34.7% year-on-year, driven by demand for 28nm FPGA products [2][4] - The next-generation 1xnm FinFET FPGA products are expected to contribute to revenue starting in 2026, with a projected 38.6% year-on-year growth in FPGA revenue to reach 1.47 billion yuan in FY2025 [2][4] - Non-volatile memory business revenue increased by 44.1%, with significant growth in automotive-grade MCU sales [2][4] - Smart meter product revenue grew by 40.8%, with strong sales in smart home appliances and automotive-grade MCUs [2][4] - The security and identification business saw a 15.5% year-on-year revenue increase, although competition remains intense [2][4] Market Outlook - The company anticipates a compound annual growth rate (CAGR) of 12.7% for revenue and 25.8% for net profit over the next three years [5] - The target price for the company is set at 45.00 HKD, indicating an 8.5% upside potential compared to the current price, based on a price-to-earnings (PE) ratio of 33.0 times the projected 2026 profit [5]