Summary:
- Rally & drivers: AVT has surged +104% YTD (S$0.07→S$0.143) on improved profitability, a potential Nasdaq spinoff of its IDRS/SPC business (~55% of revenue, with AVT retaining a 51% option), and positive read-across from the SpaceX IPO.
- Restructuring & optionality: Post-spinoff, the residual business skews toward drone communications (benefiting from the Ukraine and Iran conflicts), with upside optionality from the 2-Feb-26 SpeQtral collaboration on an integrated QKD satellite solution.
- Valuations — AVT currently trades at FY3/27F 67x PE, 4.5x PEG and 1.7% FCF yield. Compared to STI Index, AVT trades at premium of 326% PE, 187% PEG and 20.5% EV/EBITDA. Compared to global peers, AVTs’ PE is at 42.8% premium to global peer average 47x but its (current) EV/Sales of 14.5x is at 4% discount to 15x (including recent SpaceX at 61x). RHTC does not have an official rating for AVT shares.
