On July 15, the company bought 1.541 million shares at 1.37 cents each, marking the first time the company is doing so since shareholders approved a share buyback mandate back in July 2010.
Buy backs aside, Seet expects the company's advanced digital radio system (ADRS) division to do better, given how it has secured orders of US$15.2 million year to date, up from just US$4.2 million in 1HFY2025 and just US3.8 million in 1HFY2024.
Similarly, Seet believes that IDRS orders will continue to surge from increased demand from existing and new customers.
"With anti-drone solutions now actively demanded by governments globally, including locally, we expect ADRS orders to surge in 2H26 with larger sized multi-year orders," he adds.
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With the strong demand from its clients for both its IDRS and ADRS segments, Addvalue is implementing renovations to double its production capacity to 200 units per year.
It also has the ability to rent more space within its current facility and further boost production capacity with not much capex needed, which benefits margins.
Seet calls the recent price movements of the company an "opportunity" to reboard the rocket.
"Besides AI, Addvalue is benefiting from 2 of the most exciting and highest growth themes in the investment world: drones and space. We expect a rapid growth phase in the next few years after Addvalue’s turnaround in FY2025. It thus ranks as one of our Top Picks in the small-cap tech space," says Seet, who is valuing the company at 30x FY2027 sales.
