HK Stock Market Move | INNOSCIENCE (02577) surged over 7% in early trading, with gross profit in the first half of the year increasing by 1.5 times, and operating net cash flow turning positive.

INNOSCIENCE (02577) rose more than 7% in the early session. As of the time of reporting, it has increased by 6.16%, trading at HKD 45.86, with a turnover of HKD 139 million. In terms of news, INNOSCIENCE reported a revenue of RMB 834 million in the first half of the year, a year-on-year increase of 50.6%; the gross profit was RMB 97.08 million, a year-on-year increase of 156.50%, with the gross margin continuing to improve to 11.6%; the net loss narrowed to RMB 309 million, a decrease of 27.9% year-on-year. The group achieved a milestone of positive operating net cash flow, marking a significant improvement in both the company's industrial scale and profitability. Haitong previously published a research report stating that INNOSCIENCE's financial performance is about to reach a substantial turning point, with economies of scale driving an accelerated release of profitability. The bank estimates that 2027 will be a year of significant turning point for the companys fundamentals. As the capacity utilization rates in Zhuhai and Suzhou continue to improve, the substantial fixed asset depreciation will be diluted by scale. The companys revenues in 2026 and 2027 are expected to grow by 97% and 98% year-on-year to RMB 2.39 billion and RMB 4.739 billion, respectively, while the gross margin is expected to jump from 7.3% to 17% and 35%.