INNOSCIENCE (02577) is currently up over 4%, rising 4.23% to HK$74, with a trading volume of HK$238 million. The company announced the completion of a placement of 20.7 million new H shares, netting approximately HK$1.55 billion. Of the proceeds, HK$482 million will be allocated for capacity expansion, HK$376 million for repaying interest-bearing debts, and HK$692 million for working capital and general corporate purposes. This placement aims to further bolster the company’s financial strength, market competitiveness, and overall capabilities, supporting its long-term healthy growth.

Citi released a report noting that NVIDIA is promoting a new 800VDC AI server architecture, which can enhance power efficiency and is expected to be launched in 2027. This design highlights the demand for gallium nitride in AI servers, with Citi estimating a total addressable market of US$10 billion. INNOSCIENCE, in collaboration with NVIDIA, is the only provider capable of delivering a complete gallium nitride solution. INNOSCIENCE holds a 30% market share, which translates into a potential revenue share of RMB 21 billion. Citi has upgraded its forecast and target price to HK$113.6 and reiterates its "Outperform" rating.