Morgan Stanley: First coverage of INNOSCIENCE (02577) with a "market perform" rating and a target price of HK$95.

Morgan Stanley has released a research report stating that it is initiating coverage on INNOSCIENCE (02577) for the first time with a rating in line with the market. The target price is 95 Hong Kong dollars, equivalent to a forecasted P/E ratio of 34 times for next year. The bank believes that INNOSCIENCE is a leading gallium nitride power integrated circuit manufacturer and that the company is well positioned to benefit from secular growth drivers such as artificial intelligence data centers, Siasun Robot & Automation, and electric vehicles. The bank believes that the current valuation largely reflects high market expectations.