China Post Securities: Covering Innosecco (02577) for the first time to “increase the holdings” rating of gallium nitride products and achieve comprehensive breakthroughs in many fields

The Zhitong Finance App learned that China Post Securities released a research report saying that in the first half of 2025, InnoSec (02577)'s revenue continued to grow rapidly. At the business level, the company's gallium nitride products made comprehensive breakthroughs in various fields such as data centers, new energy vehicles, humanoid robots, and consumer electronics, providing key support for next-generation artificial intelligence infrastructure. The first coverage gives an “gain” rating.

The main views of China Post Securities are as follows:

Revenue continues to grow rapidly

With 2025H1, the company achieved operating income of 553 million yuan, an increase of 43.43% over the previous year. The company's gross margin increased to 6.8%, and achieved gross margin correction, mainly benefiting from product structure optimization and scale effects.

High-end business layout acceleration

Gallium nitride has achieved comprehensive breakthroughs and rapid growth in key fields such as data centers, new energy vehicles, and humanoid robots. The company's gallium nitride products accurately meet the core needs of many fields. In the field of AI and data centers, 48V-12V applications based on 100V gallium nitride have entered the mass production stage; in the first year of mass production of humanoid robots, the company cooperated with many leading robot companies to mass-produce and ship robot joint motors and dexterous hand drive solutions equipped with gallium nitride chips for the first time in the world, bringing more efficient and compact power solutions to the humanoid robot industry; in the field of new energy vehicle electronics, products used in scenarios such as lidar and on-board chargers (OBC) have maintained rapid growth; Consolidate advantages, simultaneously expand markets such as home appliances and household energy storage, and achieve application breakthroughs and scale expansion on multiple tracks.

Provide all-GaN power solutions for 800 VDC power architectures to enable a new generation of aiFactories

The company reached a cooperation with Nvidia to jointly support the implementation of the 800 VDC power supply architecture and provide key technical support for the continued evolution of the next-generation GPU roadmap. The 800 VDC rack power architecture is a breakthrough for artificial intelligence data centers, enabling higher efficiency and higher power density while reducing energy requirements and carbon dioxide emissions. As the world's leading GaN IDM company, its third-generation GaN devices have fast switching characteristics, high efficiency, high power density and excellent reliability. Relying on the deep integration of the 800 VDC power architecture with the company's gallium nitride technology, it helps artificial intelligence data centers achieve leapfrog upgrades from kilowatt racks to megawatt racks.

Investment advice

The bank expects the company to achieve revenue of 14.25/3.9 billion yuan in 2025/2026/2027, respectively.

Risk Alerts

Market competition increases risk; risk of demand falling short of expectations; risk of iterative technology upgrades; risk of yield fluctuations.