DISA Limited (SGX: Catalist) 1H FY2026 Financial Review

DISA Limited, an investment holding company with subsidiaries in digital security, anti-theft and anti-counterfeiting solutions, semiconductor trading, and healthcare tools, released its unaudited condensed interim financial statements for the six months ended 31 December 2025. This review analyzes the key financial metrics, performance trends, corporate actions, and outlook based strictly on the report’s disclosed data.

Key Financial Metrics & Comparative Table

*Previous quarter and comparative NAV/EPS figures inferred from closest available data in the report.

Performance Overview

• Revenue: Plunged by 82.8% YoY, largely due to lower semiconductor device sales. The company cited U.S. tariffs and regulatory restrictions as key factors, with customers shifting to local Chinese brands.
• Expenses: Decreased cost of inventories was in line with the reduced sales, but other operating expenses (legal, travel, patent filings) rose significantly.
• Net Loss: Improved marginally (-15.9% YoY), but still sizable. EPS remains negative at (0.01) cents per share.
• Cash Position: Cash and equivalents fell by 54.3% QoQ to \$1.24 million, with net cash outflows driven by operating losses and investment in a joint venture.
• Net Asset Value: NAV per share rose to 0.0273 cents, up from 0.0171 cents as at June 2025, mainly due to the investment in Rheumatology Associates Pte. Ltd. (RA) and share of profits therein.
• Dividends: None declared for the past or current period due to ongoing losses.

Segment Analysis & Business Actions

• Technology Segment: Revenue contracted sharply, especially from Hong Kong and the U.S. Integration with a major U.S. retailer is ongoing but slow, focusing on anti-return fraud technology (3S + RFID).
• Healthcare Segment: Newly added segment shows promise. Investment in RA contributed a \$436,000 profit share. Digital Life Line Pte. Ltd. (DLL) expanded pilot deployments of AVAT and completed clinical evaluation of the MIDAS cataract screening tool, with regulatory submission targeted in 2H FY2026.
• Investment Holdings: No material revenue, but significant new investments (RA, DLL).

Exceptional Items & Corporate Actions

• Acquisitions: Completed acquisition of 50% of RA for \$5.5 million, boosting asset base and segment profits.
• Fundraising: Rights cum warrants issue in June 2025 raised \$3.15 million; proceeds are being used for working capital and business expansion.
• Share Issuance: 250 million new shares issued for RA acquisition consideration.
• Share Options: Total outstanding options increased to 986 million; warrants outstanding at 3.15 billion.
• No Divestments or Asset Sales in the reported period.

Directors’ Remuneration

• Key management personnel compensation for 1H FY2026 totaled \$1.048 million, consisting of salaries, bonuses, share-based payments, and directors’ fees.

Related Party Transactions & Fund Flows

• Royalties paid to directors amounted to \$24,000. Aggregate value of interested person transactions was below \$100,000.
• Funds were primarily used for staff salaries and non-trade payables from the rights issue proceeds.

Chairman’s Statement

“BY ORDER OF THE BOARD
Chng Weng Wah
Executive Chairman, Managing Director and Chief Executive Officer
12 February 2026”

Tone: The statement is neutral and factual, lacking positive or negative forward-looking commentary. It reflects a cautious stance amid ongoing business transformation and investment in healthcare.

Outlook & Significant Events

• Technology: Progress with U.S. retailer remains slow. Return fraud remains a large market opportunity, but commercialization is delayed.
• Healthcare: Regulatory approval and clinical adoption of AVAT and MIDAS could drive future growth, but commercialization timelines are uncertain.
• Liquidity: Net current liabilities position persists, but management asserts most liabilities are extendable or non-cash accruals.
• No Dividends: Ongoing losses preclude dividend payments.
• Risk Factors: Macroeconomic, regulatory, and competitive risks remain high. No major legal or disaster events disclosed.

Conclusion & Investor Recommendations

Overall Assessment: DISA Limited’s financial performance remains weak, with sharply lower revenue, persistent losses, and declining cash balances. The company is pivoting towards healthcare technology, which contributed positively via joint venture profits, but the segment is in early stages and carries execution risk. Technology segment revenue is challenged by global trade headwinds, and commercialization is delayed.

Recommendations

• If you currently hold DISA shares: Consider maintaining a cautious stance. The company is restructuring and investing for future growth, but near-term financials are weak and liquidity risk persists. Monitor progress in healthcare segment and U.S. retailer commercialization. If risk tolerance is low, review portfolio exposure.
• If you do not hold DISA shares: Exercise patience. The valuation is not compelling given ongoing losses, liquidity risks, and uncertain commercialization timelines. Wait for tangible improvement in revenue, earnings, and cash flow, especially from the new healthcare segment.

Disclaimer: This analysis is strictly based on the company’s published financial report and does not constitute financial advice. Investors should conduct further due diligence and consider their own investment objectives and risk tolerance before making any investment decisions.

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