The Zhitong Finance App learned that according to a research report released by Everbright Overseas, the current valuation is in a low position, but since there is no sign of recovery in consumer goods demand yet, the rating of Fudan (01385) in Shanghai was lowered to “increased holdings”. Considering the promotion of localization and substitution of FPGA chips, the memory business is expected to continue to expand, but demand for consumer goods is sluggish and prices are under pressure, dragging down revenue growth and profitability. The 2023-25 net profit forecast was lowered to 855/11.63/1,447 billion yuan. The company achieved revenue of 2,738 billion yuan in the first three quarters and 942 million yuan in 23Q3; product demand was divided, and demand for reliable products grew steadily.

The bank said that the company's high-reliability products, FPGAs and non-volatile memory, have maintained steady growth:1) FPGA chips and other products3Q23 achieved revenue of 325 million yuan, an increase of 38% over the previous year. The company has tens of millions of gate level and 100 million gate level FPGA chips and batch applications. PSoC has also successfully mass-produced and received multiple customer orders, released a reconfigurable chip FPAI that integrates FPGA and AI for AI applications; and supports key technologies such as programmable devices and EDA, forming a technology cluster advantage in the FPGA field. Under FPGA localization replacement demand, the bank believes that the FPGA chip and other product business will maintain a high growth rate in 23Q4.2) Non-volatile memory3Q23 achieved revenue of 268 million yuan, an increase of 17% over the previous year. Thanks to the company's continued enrichment of product layout, product performance, and expansion of new application fields represented by vehicle regulations, the bank is optimistic about further expansion of 23Q4's memory business. The company continues to make efforts at the R&D level, and plans to issue no more than 2 billion yuan of convertible bonds to develop next-generation FPGAs and next-generation PSoC and PFSoC chips based on the advanced 1xnmFinFET process, and memory development and industrialization projects for new process platforms; at the level of commercial applications, the company continues to expand industrial-grade and automotive fields and actively introduce new customers.