HK Stock Market Move | SHANGHAI FUDAN (01385) Rises Nearly 7%, Company is Fully Prepared for Supply Chain Disruptions, Morgan Stanley Says Limited Impact on Demand Side

SHANGHAI FUDAN (01385) rose nearly 7%, as of the time of writing, up by 6.61% to HK$40.32, with a turnover of HK$220 million. On the news front, it was reported that the US Department of Commerce's Bureau of Industry and Security (BIS) has added 23 Chinese entities to the entity list. This includes companies such as Shanghai Fudan Microelectronics Group in the semiconductor field. On September 14, Shanghai Fudan Microelectronics Group stated on its WeChat official account that the company has strengthened strategic reserves of wafers and key raw materials for its core product lines. Inventory has increased from around HK$600 million at the end of 2020 to around HK$3.1 billion in the first half of 2025, with raw materials and work-in-progress totaling around HK$2.1 billion. This has effectively enhanced the stability and risk resistance of the supply chain, providing assurance for sustainable and steady operations. A research report from Morgan Stanley noted that SHANGHAI FUDAN is well prepared for supply chain disruptions. The company began wafer fabrication in local wafer plants in 2023 and is gradually transferring FPGA production to mainland China. The bank believes that the impact on demand is limited, as overseas sales accounted for only 6% of the company's total revenue last year. In the short term, the bank expects selling pressure, with a target price of HK$32.8 and a "Buy" rating.