China Post Securities released a research report stating that INNOSCIENCE (02577) sustained rapid revenue growth in the first half of 2025. The company's gallium nitride (GaN) products achieved comprehensive breakthroughs in data centers, new energy vehicles, humanoid robots, and consumer electronics, providing critical support for next-generation AI infrastructure. The firm initiated coverage with a "Buy" rating. Key insights from China Post Securities include:

**Sustained High Revenue Growth** In H1 2025, INNOSCIENCE reported revenue of RMB 553 million, up 43.43% YoY. Gross margin improved to 6.8%, turning positive, driven by product mix optimization and economies of scale.

**Accelerated Expansion in High-End Applications** GaN technology achieved breakthroughs and rapid growth in key sectors such as data centers, new energy vehicles, and humanoid robots. The company’s GaN products precisely address core demands across these fields: - **AI & Data Centers**: Mass production of 48V-12V applications using 100V GaN has commenced. - **Humanoid Robots**: Partnering with leading robotics firms, INNOSCIENCE became the first globally to mass-produce GaN-based joint motors and dexterous hand drive solutions, delivering more efficient and compact power solutions for the industry. - **New Energy Vehicles**: Products for LiDAR and onboard chargers (OBC) maintained strong growth. - **Consumer Electronics**: The company consolidated its market position while expanding into home appliances and residential energy storage, achieving breakthroughs and scaling across multiple segments.

**Full GaN Power Solutions for 800 VDC Architecture, Empowering Next-Gen AI Factories** INNOSCIENCE collaborated with NVIDIA to support the deployment of 800 VDC power architecture, providing key technical backing for next-generation GPU roadmaps. The 800 VDC rack power architecture enables breakthrough efficiency, higher power density, and reduced energy consumption and CO2 emissions for AI data centers. As a leading GaN IDM, INNOSCIENCE’s third-generation GaN devices combine fast switching, high efficiency, power density, and reliability. The integration of 800 VDC architecture with its GaN technology facilitates the leap from kilowatt to megawatt racks in AI data centers.

**Investment Recommendation** The firm forecasts revenues of RMB 1.4/2.5/3.9 billion for 2025/2026/2027.

**Risk Factors** Intensified competition, weaker-than-expected demand, technological obsolescence, and production yield fluctuations.