Innoscience (02577.HK): Growth and Value Analysis of a Leading Gallium Nitride Enterprise

This analysis is based on information about Innoscience (02577.HK) published on the East Money App Hot List (Hong Kong Stock Market Popularity Ranking). As the world’s largest Gallium Nitride (GaN) IDM company, Innoscience performed strongly in 2025 with market capitalization exceeding 68 billion yuan [1], rising to TOP1 among power device listed companies. Key catalysts include its 800VDC architecture partnership with NVIDIA, inclusion in the Stock Connect, expansion to 20,000 8-inch GaN wafers per month [2][4], and narrowed interim loss with positive gross profit [7]. Jefferies initiated coverage with a ‘Buy’ rating and a target price of 54.34 yuan [8].

Innoscience’s 2025 stock price performance was driven by multiple positive factors: inclusion in the Stock Connect in March [3] gaining mainland capital support, an over 70% surge in stock price in August due to the NVIDIA partnership [0], capacity expansion from 13,000 to 20,000 wafers/month reducing costs by 40% [2][4]. Interim results showed sales revenue of 553 million yuan (+43.4% YoY), loss narrowed to 429 million yuan, and positive gross profit [7], reflecting improved operational efficiency. The company’s released 1200V GaN products are suitable for new energy vehicle 800V platforms and AI data centers [9], further expanding application scenarios. In October, it raised 1.55 billion yuan through a rights issue [10], which will be used for capacity expansion and R&D to support long-term growth.

• Cross-domain Collaboration
  : The NVIDIA partnership and 1200V product launch connected the application link between automotive electronics and AI data centers, forming technical barriers [0][9].
• Cost Advantage
  : The 40% cost reduction from capacity expansion is the core factor for positive gross profit, consolidating industry leadership [2][4].
• Capital Inflow
  : Inclusion in the Stock Connect brought stable mainland capital to the company, enhancing stock liquidity [3].

• Market Competition
  : Intensified competition in the GaN industry may affect product pricing and market share [0].
• Rights Issue Dilution
  : The 7.9% discount in the October rights issue may impact stock price in the short term but is beneficial for long-term development [10].
• Technological Iteration
  : Rapid changes in semiconductor technology require continuous R&D investment to maintain leadership [0].

• New Energy Vehicle Penetration
  : Popularization of 800V platforms will drive demand for 1200V GaN products [9].
• AI Data Center Growth
  : High power density demand provides a broad market for GaN power devices [0].
• Capacity Release
  : The 20,000 wafers/month capacity will support performance growth in the next 2-3 years [2][4].

Innoscience’s leading position in the GaN field, cost advantages from capacity expansion, and diversified application scenarios make it an important player in the power semiconductor industry. The improvement in interim results and positive analyst ratings reflect the company’s development potential, but investors should pay attention to industry competition and technological iteration risks.