Atiqah Mokhtar  Published on Tue, Mar 02, 2021 / 6:30 PM GMT+8 / Updated 4 days ago

Addvalue Technologies has incorporated Revere Space, a wholly-owned subsidiary registered in the US for the purpose of expanding its presence in the US space market.

  In an SGX filing on March 2, Addvalue states that it plans to address the growing demand for Addvalue&rsquo s space-based communications products and services, with the new entity better-positioned to serve North American customers. 

Revere Space will focus on expanding Inter-Satellite Data Relay System (IDRS)-related business in support of US-based New Space satellite constellation operations. 

  Shares in Addvalue closed 0.1 cents higher or up 5% at 2.1 cents on March 2.

Written by  Jeremy Peh
  Published: 06 May 2020

 

ADDVALUE TECH - Has it reached an Inflection Point for Strong Re-Rating?

I decided to write this article after seeing how AEM has been performing so well even during the COVID-19 pandemic period.
AEM stock struggled over many years at around $0.04 to $0.08 before soaring to $2.60, a whopping 30 to 60 times gain over the last 3 to 5 years.

I have learnt of another local tech company with a suite of unusual and ground-breaking technologies, Addvalue Technologies, which may be reaching an inflection point like AEM did in Dec 2016.

Addvalue is a satellite communications company that is dedicated to developing connectivity solutions.     
While it was pouring resources into innovations, the cash flow situation for Addvalue has been tight since 2017.

However, the recent    successful issue  of new shares (at    2.25 cents  a share) that raised about $5.7m in net proceeds from Rain Asia Pacific has solved this big issue and will support Addvalue to expand its business significantly. 
The inflow of cash is happening at the right time when one of Addvalue& rsquo s core products, Inter-Satellite Data Relay System (IDRS), could be reaching the stage where clients begin to place huge orders.

For example,    Capella Space, a US company that aims to create capabilities for hourly, reliable, and persistent imagery of any place on the globe,  plans to deploy 36 IDRS into their satellites over the next 2 to 3 years.

Interestingly, the sale arrangement for IDRS will also include airtime sharing so that Addvalue will start to enjoy recurring revenue.  Rain Asia Pacific is the white knight for Hyflux through a vehicle called    Aqua Munda which has committed S$208 million to fund the purchase of debts held by some of Hyflux' s creditors as well as other working capital requirements of Hyflux " if so agreed" .
Holding a 12.48% stake in Addvalue, Rain Asia Pacific is a privately owned company investing into critical infrastructure (including gas-to-power and water industrial sectors), technology and real estate.

The legal and beneficial owners and shareholders of Rain Asia Pacific are two private investors -- Dr. Ali Nasser S.A. Aldhaheri and Mr. Bambang Sugeng bin Kajairi.
Rain Asia Pacific has deep pockets and seems to have invested at the right time to aid Addvalue in growing further.

The key question now is whether the company& rsquo s revenue and profit could significantly improve over the next few years. I think the chances are   high because of two core products that are shaping up for full commercialization.

https://www.nextinsight.net/story-archive-mainmenu-60/943-2020/13508-addvalue-tech-reached-inflection-point-for-strong-re-rating