Understanding the Market | INNOSCIENCE rises over 4%, completing a net fundraising of over HKD 1.5 billion through a placement, the company collaborates with NVIDIA to support the 800V architecture

INNOSCIENCE is currently up over 5%, as of the time of publication, up 5.28%, priced at HKD 74.75, with a trading volume of HKD 298 million. In terms of news, INNOSCIENCE announced the completion of a placement of a total of 20.7 million new H shares, raising approximately HKD 1.55 billion net. INNOSCIENCE stated that HKD 482 million will be used for capacity expansion; HKD 376 million will be used to repay interest-bearing liabilities, and HKD 692 million will be used for working capital and general corporate purposes. This placement will further enhance the company's financial strength, market competitiveness, and overall capabilities, promoting long-term healthy development. Citi released a research report stating that Nvidia is promoting a new 800 VDC AI server architecture, which can improve power efficiency and is expected to be launched in 2027. This design demonstrates the demand for gallium nitride in AI servers, and the firm estimates that this market will have a total addressable market (TAM) of USD 10 billion. INNOSCIENCE's collaboration with Nvidia makes it the only supplier capable of providing a complete gallium nitride solution. INNOSCIENCE holds a 30% market share, which should represent a potential revenue share of RMB 21 billion. The firm has raised its forecast and target price to HKD 113.6 and reiterated its "Outperform" rating