INNOSCIENCE (02577) climbed more than 7% during Tuesday morning trading on the Hong Kong Stock Exchange, underscoring growing investor confidence in the company's improving financial trajectory. As of the time of writing, the stock was up 6.16% at HK$45.86, with trading turnover reaching HK$139 million.

On the fundamental side, INNOSCIENCE posted first-half revenue of RMB 834 million, a year-on-year increase of 50.6%. Gross profit jumped 156.50% to RMB 97.082 million, with the gross margin steadily improving to 11.6%. The company's net loss narrowed by 27.9% year-on-year to RMB 309 million. Notably, the group achieved a key milestone with operating net cash flow turning positive, signaling a substantial enhancement in both its industrialization scale and profitability.

Looking ahead, Haitong Securities previously issued a research report stating that INNOSCIENCE's financial performance is on the verge of a meaningful inflection point, with scale effects expected to accelerate earnings release. The brokerage estimates that 2027 will be the year when the company's fundamentals undergo a substantive turnaround. As capacity utilization at its Zhuhai and Suzhou production bases continues to improve, the hefty fixed-asset depreciation is expected to be increasingly diluted by scale. Haitong projects that INNOSCIENCE's revenue will grow 97% and 98% year-on-year in 2026 and 2027, reaching RMB 2.39 billion and RMB 4.739 billion respectively. Meanwhile, the gross margin is forecast to surge from 7.3% to 17% and 35% over the same period.