Innoscience (02577.HK) Hot Stock Analysis Report

Innoscience (02577.HK) is an enterprise focusing on the R&D, production, and sales of gallium nitride (GaN) power semiconductors, with core application areas including consumer electronics, new energy, automotive electronics, and data centers [2]. In December 2025, the company became a hot stock in Hong Kong due to multiple catalysts: First, it was included in the HKEX Tech 100 Index on December 9 and the Hang Seng Hong Kong Stock Connect Electronic Theme Index on December 18. The dual index inclusion enhanced the stock’s market visibility and liquidity, attracting passive investment inflows [1][3][4]. Second, it reached a strategic cooperation with Onsemi (ON.US), which is expected to bring hundreds of millions of US dollars in gallium nitride sales in the next few years; meanwhile, its 650V gallium nitride 6.6kW OBC system was successfully installed in Chang’an Automobile, verifying the commercial potential of gallium nitride technology in the automotive field [5][6].

In terms of price, after the strategic cooperation news was released, the stock price once surged 7.99% to HK$83.15, but by December 24, 2025, it had fallen back to the range of HK$67.40-HK$70.60 [2][5]. The 52-week stock price range is HK$30.550-HK$106.100, indicating high volatility [2]. Trading volume was significantly higher than the average during the news release and index inclusion periods. Market sentiment was generally positive, but since the company has not yet turned profitable (TTM earnings per share: -HK$1.240 [2]), some investors took profits at the phased high, leading to a short-term correction in the stock price.

1. Gallium Nitride Industry Growth Driver
   : As a new generation of power semiconductor materials, gallium nitride demand continues to grow in new energy vehicles, fast charging, and other fields. Innoscience’s technological breakthroughs and vehicle installation progress make it an important player in this track.
2. Long-term Impact of Index Inclusion
   : Dual index inclusion not only improves short-term liquidity but also supports the company’s long-term valuation, attracting more institutional investor attention.
3. Rationality of Short-term Correction
   : After the stock price surged on positive news, the subsequent correction is a normal profit-taking behavior. Investors need to pay attention to whether the short-term support level of HK$67.40 can hold.

• Opportunities
  : The gallium nitride industry is growing rapidly; the company’s technology is in a leading position in the industry; strategic cooperation and index inclusion provide momentum for long-term development.
• Risks
  : The company has not yet achieved profitability; continuous R&D investment and market expansion put pressure on its financial situation; the gallium nitride market is highly competitive, with international giants such as Infineon and Texas Instruments also increasing their布局; wide stock price volatility (52-week range: HK$30.550-HK$106.100) increases investment risks [2].

Innoscience (02577.HK) has become a hot Hong Kong stock due to index inclusion, strategic cooperation, and business progress, with long-term development potential. However, investors need to pay attention to factors such as profit risk, industry competition, and stock price volatility. Investors should combine their own risk tolerance and pay attention to the company’s subsequent profit situation and industry dynamics.