INNOSCIENCE (02577) saw its share price jump more than 4% in Thursday trading, with the stock climbing 4.1% to HK$42.16 at the time of writing, on turnover of HK$56.887 million.

The rally comes after the company released its 2026 interim results, reporting sales revenue of RMB 834 million, a 50.6% year-on-year increase. Gross profit reached RMB 97.082 million, up 156.50% from the prior year, with gross margin steadily improving to 11.6%. The margin enhancement was primarily driven by a higher proportion of high-margin products in the sales mix, alongside cost reductions achieved through economies of scale in production capacity.

During the reporting period, the group shipped a total of 547 million units, pushing cumulative shipments past the 2.5 billion mark, solidifying its leadership position in the gallium nitride (GaN) sector.

Goldman Sachs has maintained a constructive stance on the company, expressing optimism about its comprehensive GaN product portfolio spanning 15V to 1200V applications and the diversity of its end-market usage. Management indicated that the company has accelerated its GaN capacity expansion plans, targeting a monthly wafer production capacity of 70,000 wafers in the coming years. This move is designed to capture the growing demand for GaN in automotive and data center applications, as well as anticipated demand from the robotics sector in the medium to long term.

Adoption of GaN in data centers remains in its nascent phase, and the company is still exploring appropriate business models. These include potential partnerships with power device suppliers or establishing direct collaborative relationships with cloud service provider (CSP) customers.