iWOW Technology Limited: 1H2026 Financial Performance Analysis

iWOW Technology Limited has released its unaudited condensed interim financial statements for the half year ended 30 September 2025. The report highlights significant revenue growth, margin improvements, and ongoing strategic investments, particularly in Age-Tech and Smart City solutions. Below is a detailed analysis of key metrics, trends, and strategic developments for investors.

Key Financial Metrics & Performance Table

Historical Performance Trends

• Revenue Growth: The Group delivered a strong 12% YoY revenue increase, driven by substantial growth in Datacomm & Enterprise Solutions (DES) (+120%), Trading & Others (+85%), and Smart City Solutions (+114%). Wireless Engineering Solutions (WES) saw a decline (-23%) due to a high base effect from a prior large contract.
• Profitability: Net profit surged to S\$576,000, a 372% YoY increase. This was supported by higher operating income (S\$762,000, +186%), improved margins from the Age-Tech contract, and cost discipline in other operating expenses (-13%).
• EPS: EPS rose sharply from 0.05 cents to 0.22 cents, reflecting strong bottom-line growth.
• Balance Sheet: Net asset value per share increased to 7.47 cents (+3.8%). The Group’s financial position strengthened, with total assets rising to S\$39.7 million and cash reserves up by S\$2.8 million.

Exceptional Earnings & Expenses

• Contingent Consideration: A S\$3.0 million expense was recorded in 2H2025 due to an upward revision in the acquisition cost of ROOTS Singapore, reflecting its better-than-expected financial performance.
• DBS Foundation Grant: The Group received a significant grant under the DBS Foundation Impact Beyond Award, supporting Age-Tech innovation.

Chairman’s Statement

“In 1H2026, we commenced deployment of the S\$50.0 million Wireless Alert Alarm System (“WAAS”) contract and are currently focused on building deployment momentum, with rollout expected to span the next three to four years. Having invested earlier in establishing the core deployment team, the Group expects higher margin contribution from each additional WAAS revenue dollar, supporting a positive turnaround and steady profit growth ahead. Our efforts in Age-Tech innovation received further validation through the DBS Foundation’s Impact Beyond Award, which included a S\$1.0 million grant to support the development of our Age-Tech solutions, and the Singapore Good Design Award 2025 for the BOP Button, recognised for its thoughtful, human-centred design that balances state-of-the-art technology with a human touch. These accolades, together with the S\$3.0 million investment from an existing shareholder and the recent positive share price performance, affirm that the Group’s R&D investments are well-directed and strengthen our confidence to continue developing next-generation solutions ahead of the demand curve, while reflecting growing investor confidence in our strategic direction and long-term value creation. Building on our leadership in Singapore’s Age-Tech sector following the landmark WAAS contract, the Group recognises that the broader Silver Economy encompasses multiple dimensions of ageing well. To capture a larger share and accelerate growth in this expanding market, we are pursuing strategic initiatives, including M&A, alongside continued investment in R&D and overseas expansion. These efforts aim to position iWOW as a dominant player across the broader Silver Economy. We remain cautiously optimistic on the mid to long-term outlook, mindful of ongoing geopolitical uncertainties and broader macroeconomic headwinds. With an order book of S\$115.2 million as of 31 October 2025, the Group has strong revenue visibility while continuing to drive improved returns from past investments in Age-Tech and Electronic Monitoring. Coupled with ongoing R&D and the continuous pursuit of overseas opportunities, we remain committed to creating sustainable long-term value for our shareholders.”

The statement conveys a positive tone, highlighting strategic wins, innovation validation, strong order book, and cautious optimism amid macroeconomic uncertainties.

Directors’ Remuneration

• Directors of the Company: Received short-term benefits (S\$224,000), CPF contributions (S\$9,000), directors’ fees (S\$85,000), and share-based compensation (S\$11,000).
• Directors of Subsidiaries: Received short-term benefits (S\$275,000), CPF contributions (S\$20,000), directors’ fees (S\$3,000), and share-based compensation (S\$5,000).

Corporate Actions & Fund Flows

• Share Placement: Net proceeds of S\$2.95 million raised in October 2025 will be used for strategic investments and working capital focused on Age-Tech.
• Share Buybacks: The company holds 258,100 treasury shares (0.10% of issued shares), reserved for employee share options. No sales, transfers, or cancellations in the period.
• IPO Proceeds: Of the S\$6.5 million IPO proceeds since 2022, only S\$169,000 remains unutilized.

Unusual Fund Flows & Related-Party Transactions

• No significant related-party transactions or interested person transactions exceeding S\$100,000 were reported.

Strategic Developments & Events Impacting Performance

• Age-Tech and WAAS Contracts: Commenced deployment of a S\$50 million WAAS contract. Revenue ramp-up and margin improvements expected over the next three to four years.
• DBS Foundation Grant & Awards: Received S\$1 million for Age-Tech innovation and won the Singapore Good Design Award for the BOP Button.
• Expansion & M&A: Actively pursuing mergers, acquisitions, and overseas expansion to capture the growing Silver Economy market.
• Macroeconomic Factors: Management notes ongoing geopolitical and macroeconomic uncertainties but remains optimistic due to a strong S\$115.2 million order book.

Dividend Policy

• No interim dividend was declared for 1H2026, as the Board will assess full-year performance and funding needs before considering a final dividend.
• No dividend was declared for 1H2025; last dividend was S\$579,000 (final for FY2024).

Conclusion & Investment Recommendations

Overall, iWOW Technology Limited demonstrates a strong financial performance and outlook: Revenue and net profit growth are robust, margin improvements are apparent, and strategic contracts provide multi-year visibility. The company is investing in innovation and expansion, especially in Age-Tech, supported by external validation and awards.

• If you currently hold iWOW shares: Consider maintaining or increasing your position. The company is well-capitalized, executing on major contracts, and positioned for growth in the Silver Economy. Ongoing strategic investments and a strong order book support further upside potential.
• If you do not currently hold iWOW shares: Consider initiating a position if your risk tolerance allows. The strong growth trajectory, margin expansion, validated innovation, and multi-year order book make iWOW an attractive candidate for capital appreciation. However, monitor execution risks and macroeconomic uncertainties.

Disclaimer: This analysis is based strictly on the disclosed interim financial statements and does not constitute financial advice. Investors should consider their own investment goals and consult a professional before making decisions.

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