For its FY2026 ended March, Addvalue reported patmi of US$4.8 million, a surge of 148% y-o-y, led by a 60% jump in revenue to US$24.8 million.
Addvalue has two key operating segments. The first, IDRS, or inter-satellite data relay service, enjoyed a 61% jump in revenue. "Based on feedback from customers, management expects more terminals to be delivered, accompanied by more satellite launches in the next 12 months," says Seet.
This segment was recently renamed by the company as space connectivity related business, or SPC.
The other key segment, advance digital radio, or ADR, enjoyed similar revenue growth of 58%, as it gained traction from the anti-drone and smart radio frequencing sensing industries.
As of end of FY2026, Adddvalue's orderbook stands at US$23.1 million and Seet expects more orders from both segments.
Seet notes that the company is now undergoing renovations with the aim of doubling its capacity to 200 units per year, which suggests the current FY2027 is going to be a "much stronger" year.
Now, besides the growing orders momentum, what makes Addvalue interesting too is the planned spin-off of its space connectivity unit for its own Nasdaq listing, which Seet calls a "potential game-changer".
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"With US valuations far higher than in Singapore, we estimate a potential market cap in the US$200-300 million range and the potential to return some cash to shareholders if it successfully lists its IDRS arm in the US.
"It will also put Addvalue at the forefront of the space/satellite scene and present more M&A opportunities. Its Singapore valuation could rise if the Nasdaq-listed arm value is much higher than Addvalue’s market cap in Singapore," adds Seet.
Seet has kept his valuation multiple at 30x FY2027 price to sales, which he points out is a 65% discount to global peers.
He has raised his FY2027 earnings estimates by 3.7% and FY2028's 2.3%, leading to a higher target price of 34 cents.
Addvalue Technologies shares, as at 9.47 am, was down 1.2% to 16.4 cents. It is up 134.29% year to date.
