Addvalue Technologies (SGX:A31
) has reported earnings of US$4.8 million for FY2026 ended March 31, 147.5% higher y-o-y
Revenue was up 59.9% y-o-y to US$24.8 million in FY2026, mainly due to its space connectivity (SPC) related business and advance digital radio (ADR) related business, which continues its growth momentum in this financial year.
“More than 94% of the revenue in FY2026 was attributed to the SPC-related business and ADR-related business as both registered significant y-o-y growth of 60.6% and 57.5% respectively,” says Addvalue.
Addvalue explains that the growth in its SPC-related business was driven by the continual orders for its IDRS terminals and the accompanying data connectivity services from US and Japan.
Meanwhile, its ADR-related business was largely driven by the supplies of certain reconfigurable embedded modules that it developed against contracts for a large local technology company.
On the geographical front, almost 90% of FY2026 revenue was generated from America region and Asia Pacific region as both regions are Addvalue’s current focused markets for SPC-Related Business and ADR-Related Business.
Revenue from America region increased by 48% y-o-y mainly due to the revenue increase from successful delivery of the IDRS terminals and related services to existing and new IDRS clients in America. Asia Pacific region saw an 52% y-o-y increase in sales, largely due to successful delivery of the IDRS terminals and related services to existing and new IDRS clients in Asia Pacific region and shipments of certain reconfigurable embedded modules.
Gross profit increased 60% y-o-y to US$13 million while gross profit margin of 52.1% remained unchanged compared to the previous financial year.
The higher gross profit was attributed to the higher delivery of products in both 1HFY2026 and 2HFY2026.
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Selling and distribution expenses increased 18.7% y-o-y to US$1.35 million due mainly to new marketing initiatives, including additional marketing and overseas travelling expenses incurred for participation in overseas exhibitions and sales trips and additional business development support during the year.
Administrative expenses increased 45.7% y-o-y to US$4.75 million due to corporate expenses incurred to support the exercise of CLN, its Detachable Warrants and RCB and increase in salaries and other personnel-related expenses in line with key personnel changes and increased in manpower to strengthen sales support and related departments in line with the increase sales.
Other operating expenses was up by 37.7% y-o-y to US$3.47 million, attributed to the increase in inventory obsolescence and fair value loss after redemption of RCB and CLN in FY2026, compared to FY2025.
As at March 31, Addvalue has a zero-debt balance sheet with working capital improved to US$8.38 million. Net cash generated from operation was at US$8.5 million compared to US$3.6 million a year ago largely due to improved operating profit from operating activities resulting in a cash and bank balances of US$7.26 million.
Net asset value improved to US$18.2 million in FY2026, compared against US$8 million in FY2025 while net asset value per share increased to 0.49 US cents from 0.25 US cents.
Addvalue mentioned that it has an order book of US$23.1 million as at March 31, which will be substantially fulfilled in FY2027. “This augurs well and compares favourably with the US$24.8 million of revenue achieved in FY2026,” says Addvalue.
Barring any unforeseen circumstances and given the current order book level, Addvalue is confident of its continued performance in FY2027.
Shares of Addvalue closed up 0.1 cent, or 0.73% higher at 13.8 cents on May 22. For the past one year, its share price has gained 1,433%.
