Despite consecutive years of losses, INNOSCIENCE’s stock price has surged dramatically—can its market capitalization realistically reach RMB 100 billion?

Introduction: From years of losses to turning the corner toward profitability—how is Innoscience telling a new growth story? On July 31, NVIDIA’s official website updated its list of partners for the 800V DC power architecture, naming Innoscience (2577.HK) as the sole Chinese semiconductor company on the roster. Driven by this news, on August 1, Innoscience’s share price surged over 60% intraday—a record high—before closing up more than 30%. Total trading volume reached HK$4.24 billion, ranking sixth across the entire Hong Kong market and setting a new all-time single-day volume record for the company since its listing. Screenshot of Innoscience’s share price on August 1 Since its listing on the Main Board of the Hong Kong Stock Exchange on December 30, 2024, Innoscience Technology has rapidly attracted investor attention thanks to its technological expertise and market positioning in gallium nitride (GaN) power devices—doubling its market capitalization within just a few months. At IPO, Innoscience priced its shares at HK$30.86, raising a total of HK$1.4 billion; after deducting related expenses, net proceeds amounted to HK$1.3 billion. According to publicly available data: • In December 2024, shortly after listing, its share price ranged between HK$30.86 and HK$58.25; • In July 2025, the range expanded to HK$41.75–HK$79.20; • In early August 2025, its share price hit an all-time high of HK$73.55—more than double its IPO price—and its market cap surpassed HK$51.5 billion. Notably, between July 3 and August 5, 2025, Innoscience’s share price soared from HK$36.80 to HK$75.15—a rise of over 100%—making it one of the rare high-growth tech stocks in the Hong Kong market. Historically, Hong Kong investors have tended to undervalue hard-tech companies. Innoscience’s choice of a Hong Kong listing was, in fact, a pragmatic necessity. This sharp rally was primarily triggered by Innoscience’s announcement in August 2025 of a strategic partnership with NVIDIA to jointly promote large-scale adoption of the 800V DC power architecture in AI data centers. Compared with traditional 54V power delivery, this new architecture delivers significant improvements in energy efficiency, thermal loss reduction, and system reliability—making it well-suited to meet the projected hundredfold increase in computing demand. Innoscience stated that its GaN devices support full-chain voltage conversion—from 800V input down to outputs ranging from 15V to 1200V—enabling complete GaN-based power systems capable of meeting the power supply requirements of megawatt-class AI computing infrastructure. This not only elevates Innoscience’s strategic value in data center applications but also signals a pivotal moment for GaN technology’s large-scale deployment in high-power AI scenarios. Interestingly, on May 21, 2025, after U.S. market hours, Navitas Semiconductor (NVTS), Innoscience’s competitor, similarly announced collaboration with NVIDIA on next-generation 800V high-voltage DC (HVDC) architecture—and its share price spiked 180%–200%. Reduced losses: Key financial comparisons Key milestones in Innoscience’s founding history — Source: Compiled by SemiMedia Research Institute Innoscience is a globally leading integrated device manufacturer (IDM) specializing in the research, design, production, and sales of gallium nitride (GaN) power devices.

International investment banks uniformly express strong optimism about Innoscience.

I. Trading rationale for Innoscience (02577.HK): 1. Dongzi Securities: Within the past 90 days, 10 institutions have issued ratings for this stock—6 ‘Buy’ and 4 ‘Add’. The average target price set by these institutions over the past 90 days is HK$49, representing a 29% premium over the current share price. According to Dongzi Securities’ big-data analysis, the company has received investments from STMicroelectronics and Jiangsu Provincial State-owned Capital Fund. (Date: April 28, 2025) 2. CLSA: Financially, the company has posted losses over recent years. However, with growing market demand and expanding production capacity, profitability is expected by 2027. Revenue stood at RMB 593 million in 2023 and is projected to reach RMB 8.01 billion by 2028—a compound annual growth rate (CAGR) of 76%. Gross margin was -61.1% in 2023 but is forecast to improve to 48% by 2028. Operating expense ratios are also expected to decline gradually as economies of scale take effect. Innoscience holds a leading position in the GaN power semiconductor market, and demand for GaN is surging rapidly amid growth in electric vehicles (EVs), AI servers, and renewable energy sectors. CLSA assigns the stock an ‘Outperform’ rating. (Source: Reuters, cn.tradingview.com/news… Date: April 28, 2025) 3. China Merchants Securities: Benefiting from rising GaN application penetration and market expansion, the company’s revenue grew from RMB 68 million in 2021 to RMB 828 million in 2024, and is projected to reach RMB 3.098 billion by 2027—a CAGR of 55.2% from 2024 to 2027. As business scale expands, Innoscience’s gross margin and net profit margin are expected to improve progressively: gross margin is forecast to turn positive in 2025, and net profit margin to turn positive in 2027. Based on a 30x P/E multiple for 2030 (aligned with peers’ five-year average), a weighted average cost of capital (WACC) of 12.0%, and an RMB/HKD exchange rate of 1.07, China Merchants Securities assigns the stock a ‘Buy’ rating. (Source: Reuters, cn.tradingview.com/news… Date: April 28, 2025) II. Trading rationale for PTK New Materials (300811): 1. Dongzi Securities: Within the past 10 days, four institutions have issued ratings for this stock—two ‘Buy’ and two ‘Recommended’. The average target price over the past 10 days is RMB 52, representing a 30% premium over the current share price. According to Dongzi Securities’ big-data statistics, the stock has seen three consecutive days of net institutional buying. (Date: April 28, 2025) 2. AVIC Securities: The company’s core business—metal powder core components—is rooted in the new-energy sector. By strategically extending upstream into chip inductors for computing infrastructure, and forging business ties with world-leading GPU chipmakers, PTK has further cemented its industry standing as an ‘expert in metallic soft magnetic materials and their applications’. Its second growth engine is now clearly underway, positioning it to fully capture the high-growth dividends of the AI era.

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