Singapore space push opens doors for Addvalue’s satellite business

[SINGAPORE] Satellite communications company Addvalue Technologies aims to unlock market value from its Inter-Satellite Data Relay System (IDRS) business.

On Friday (Mar 13), the mainboard-listed company announced plans to realise the full potential of the IDRS business, adding that it has formed a working team with external advisers to accomplish this.

The initiative will involve a range of strategic options, including alliances, mergers and acquisitions, as well as other capital market positioning strategies, particularly, opportunities in the US market, said Addvalue.

This comes on the back of the group’s robust performance for FY2025, mainly within the Space Connectivity (SPC)-related business, which primarily comprises the IDRS business.

For FY2025, Addvalue’s net profit surged more than six times to nearly US$2 million, from US$302,000 in FY2024, as its revenue climbed 21.6 per cent to US$15.5 million from US$12.8 million.

Richard Denny, Addvalue’s non-executive chairman, said: “Going forward, we will explore strategic options to enhance shareholder value, including pursuing collaborations to access new markets and seeking opportunities to realise the intrinsic value of the company, especially by unlocking the value of our SPC-related business.”

Addvalue noted that advancement of the IDRS business has continued into FY2026, with the company securing multiple orders for IDRS terminals, totalling US$13.6 million.

“These developments underscore the rapid growth trend of the IDRS business, which serves the communication needs of the low earth orbit satellite industry,” the company added.

The news also comes amid the establishment of the National Space Agency of Singapore, a milestone in Singapore’s push into the global space economy. This move stands to unleash opportunities for companies with exposure to the space industry. This includes telcos, companies that support industries of aerospace and defence, electronic equipment and instruments, as well as tech sector firms such as Addvalue.

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Maybank Securities analyst Jarick Seet said that Addvalue is a front runner in the space and satellite industry that could benefit from Singapore’s space push, The Business Times reported previously. These sectors account for more than 60 per cent of Addvalue’s revenue, and its customers are mainly in the US, he noted.

Addvalue shares ended Thursday 2.5 per cent or S$0.002 down at S$0.079.