Addvalue Tech rises 14.5% on H2 earnings surge 

[SINGAPORE] Shares of Addvalue Technologies rose on Monday (May 25) morning after the mainboard-listed company reported higher net profit for its second half ended Mar 31. 

The stock rose 14.5 per cent or S$0.02 to S$0.158 as at 11.59 am on Monday, with 200.1 million shares changing hands. 

By the midday trading break, it had eased to S$0.157, still up by 13.8 per cent or S$0.019, with nearly 201 million shares transacted, making it the top traded stock on the Singapore Exchange by volume. 

The counter’s rise comes after Addvalue reported on May 23 a 48.5 per cent rise in net profit to US$2.9 million for H2, driven by higher product deliveries.

This was up from US$1.9 million in the previous corresponding period. Revenue rose 63.6 per cent year on year to US$16.1 million from US$9.8 million.

For the full year, Addvalue’s net profit rose 147.5 per cent to US$4.8 million from US$2 million the previous year. 

Full-year revenue for the satellite communications company came in at US$24.8 million, an increase of 59.9 per cent from US$15.5 million a year earlier. 

Earnings per share for the full year stood at US$0.00142, up from US$0.000603 the previous year. 

Gross margin for the full year was at 52.1 per cent, unchanged from FY2025, while H2 margin slipped marginally to 52.4 per cent from 54.3 per cent previously.

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The company did not declare any interim or final dividends for FY2026, noting that it is still in the “nascent phase of strengthening its working capital in its earlier years of profitability” after emerging from its loss-making position.

Addvalue expects its growth momentum to continue over the next 12 months, backed by accelerating revenue growth in FY2026 and an “improving positive” earnings before interest, taxes, depreciation and amortisation, and after-tax profit of US$4.8 million.

Across its four business segments, its space connectivity-related (SPC) business segment saw the largest contribution in terms of revenue, driven by the continual orders for inter-satellite data relay system (IDRS) terminals and the accompanying data connectivity services predominantly from the US and Japan.

Addvalue said its IDRS business continued to gain traction, recording a 60.6 per cent year-on-year increase in FY2026. Its SPC business maintained growth momentum driven by the adoption of low Earth-orbit satellite technologies in the new space industry.

Its advanced digital radio-related business grew 57.5 per cent on the year, supported by its diverse range of products.

As at Mar 31, 2026, the company had an order book of US$23.1 million that is expected to be substantially fulfilled in FY2027.

The company said its current order book compares favourably with the revenue achieved in FY2026. Barring unforeseen circumstances, it remains confident of its performance in FY2027.

Addvalue also said it has commenced the proposed spin-off listing of its IDRS business, after receiving concurrence from the bourse that the exercise would not constitute a chain listing, subject to listing requirements and shareholders’ approval.