> **来源：[研报客](https://pc.yanbaoke.cn)** # InnoScience (2577 HK) 1H26 Summary and Outlook ## Core Content InnoScience, a GaN power semiconductor company listed on the Hong Kong Stock Exchange, reported its 1H26 results, which showed a revenue increase of 50.6% YoY to RMB834 million. The gross profit margin (GPM) improved to 11.6% from 6.8% and 7.7% in 1H and 2H25, driven by higher utilization, product upgrades, and a richer mix. Operating cash flow turned positive, indicating improved financial health. The company's revenue is expected to remain 2H-weighted, consistent with historical seasonality. As a result, the FY26/27E revenue forecasts have been adjusted by -0.1% and +18.2%, respectively, due to broader design conversion and capacity ramp-up. However, the GPM forecasts have been lowered by 7.0ppt and 1.9ppt, reflecting stable average selling prices (ASPs) and management's focus on market share gains. ## Key Financial Highlights - **Revenue**: - FY24A: RMB828 million - FY25A: RMB1,213 million - FY26E: RMB2,079 million (+71.4% YoY) - FY27E: RMB3,607 million (+73.5% YoY) - FY28E: RMB5,332 million (+47.8% YoY) - **Gross Margin**: - FY24A: 7.3% - FY25A: 15.5% - FY26E: 31.5% - FY27E: 37.7% - **Net Profit**: - FY24A: RMB-1,046 million - FY25A: RMB-840.5 million - FY26E: RMB-641.4 million - FY27E: RMB40.8 million (+1,457.3% YoY) - FY28E: RMB635.5 million - **EPS (Reported)**: - FY24A: RMB-127.64 cents - FY25A: RMB-95.40 cents - FY26E: RMB-70.43 cents - FY27E: RMB4.48 cents - FY28E: RMB69.78 cents - **P/E (x)**: - FY27E: 874.2 - FY28E: 56.1 ## Revenue and Growth Drivers - **Industrial Applications**: - Revenue grew by 83% YoY, driven by GaN adoption in battery-management and factory-automation systems. - **Household Appliances**: - Revenue increased by 924% YoY, from a low base. - **Auto-grade Chips**: - Shipments rose by 103% YoY, supported by initial production of a 6.6kW OBC and 3.5kW DC/DC solution, although revenue remains a low-single-digit share of sales. - **Robotics**: - Shipments increased by 50% YoY. - **AIDC (Advanced Intelligent Data Center)**: - Represents a key medium-term growth opportunity. AIDC shipments rose by 183% YoY, supported by over 100 design-ins across more than 20 cloud-service providers. The company expects AIDC to become a more meaningful earnings contributor as product qualifications are completed and customer programs enter volume production. ## Valuation and Investment Outlook - **Target Price (TP)**: HK\$74.20 (revised from previous TP of HK\$75.00). - **Valuation Methodology**: Based on 35x FY30E P/E, with a cost of equity (COE) of 12.0%. - **Valuation Multiple**: Implies a modest premium to peers' 29.5x FY27E average, justified by its pure-play GaN exposure and stronger growth outlook. - **Ratings**: - **BUY**: Stock with potential return of over 15% over the next 12 months. - **HOLD**: Stock with potential return of +15% to -10% over the next 12 months. - **SELL**: Stock with potential loss of over 10% over the next 12 months. ## Shareholding and Stock Data - **Market Cap (HK$ million)**: HK\$41,815.5 - **Average 3 Months Turnover (HK$ million)**: HK\$543.7 - **52 Weeks High/Low (HK$)**: 101.60 / 36.94 - **Total Issued Shares (million)**: 915.0 - **Shareholding Structure**: - Weiwei Luo: 31.1% - CMB Growth: 13.4% ## Risk Factors - **Weaker demand than expected** - **Geopolitical uncertainties** ## Analyst Certification and Disclaimer - The research analyst certifies that the views expressed in the report reflect his or her personal views and that no part of his or her compensation was related to the specific views in the report. - The report is not tailored to individual investors and does not guarantee accuracy, completeness, or timeliness of the information. - CMBIGM does not provide investment advice and recommends consulting a professional financial advisor. - The report is for the use of intended recipients only and may not be reproduced or distributed without prior written consent. ## Conclusion InnoScience is viewed as one of the purest listed GaN power semiconductor platforms, with a strong growth outlook and material AIDC optionality. The company is expected to benefit from the industry's transition towards higher-density power architectures, which should expand the addressable opportunity for GaN across multiple conversion stages. Despite the current challenges, the revised target price and valuation reflect the company's potential for future growth and profitability.