Besides space connectivity, which includes the fast-growing inter-satellite data relay system, Addvalue's other business lines include advance digital radio, satcom connectivity and strategic design services.
For now, Addvalue plans to hold at least 51% a post spin-off stake, and that itself intends to remain listed on SGX's Mainboard.
Addvalue says it has yet to submit any formal listing application and there is no assurance this listing will go ahead.
News of this potential spin off has inspired Jarick Seet of Maybank Securities to raise his target price from 12 cents to 31 cents, as he believes this corporate action can help lift Addvalue's valuation.
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Seet estimates that IDRS, the business to be spun off, will potentially generate US$15-20 million in FY2027 revenue and grow to US$25-30 million come FY2028.
Global peers are mostly loss-making and trading at an average price-to-sales multiple of 85.6x, significantly higher than Addvalue’s 11.3x, says Seet in his April 27 note.
His target price of 31 cents is pegged to 65% discount to global peers, at 30.1x FY2027 price-to-sales.
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"With the potential listing of SpaceX, the wars in Ukraine and Iran, global space and drone valuations have surged in the past few months, especially in the US," he reasons.
According to Seet, Addvalue's production capacity is being expanded from 100 to 200 units per year by the end of 3QFY2026.
He estimates the spin off to fetch a potential market cap in the US$200-300 million range, allowing Addvalue to raise capital at a much higher valuation and return cash to shareholders.
Separately, Addvalue's Advanced Digital Radio System or ADRS business is gaining momentum.
With the recent conflicts in Ukraine and Iran proving that warfare is evolving through the use of unmanned systems, many countries globally, including Singapore, are now expanding their detection and anti-drone solutions.
Addvalue won orders of US$4.8 million in December 2025, and Seet expects more such orders in the "near term".
Addvalue’s total orderbook is now at a record high of US$26.4 million.
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"Besides AI, Addvalue is benefiting from 2 of the most exciting and highest growth themes besides: drones and space. We expect rapid growth phase in the next few years after the inflection point in FY2025.
"Addvalue is one of the rare Asian space/drone plays in a rapid growth mode," says Seet.
Addvalue Technologies shares, as at 10.24am, is the most heavily traded counter with nearly 181 million shares changing hands. It is up 28.81% to 15.2 cents.
