On July 13, Shanghai Fudan Microelectronics fell 5.31% in regular trading, trading at HK$29.96 per share, with turnover of HK$162 million. The stock has continued to retreat following its July 7 profit alert, which initially triggered a surge of over 10% on July 8.

The company forecast H1 attributable net profit of RMB 800 million to RMB 1 billion, representing year-over-year growth of 313% to 416%. However, market focus has shifted to earnings quality concerns. Approximately RMB 470 million of the profit stemmed from fair value gains on strategically allocated shares in Shenghe Jingwei Semiconductor. Excluding non-recurring items, net profit was only RMB 350 million to RMB 450 million, implying core business growth of roughly 92% to 147% — far below the headline figures. Revenue guidance of RMB 2.2 billion to RMB 2.4 billion represents 20% to 31% growth. After the initial positive reaction faded, funds have continued to take profits as the gap between headline and underlying performance became apparent.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)