New Chapter for Trek 2000: Azure Fund Steps In Amidst Strong FY25 Results

Long languishing on the stock market, Trek 2000 International - a tech innovator and original inventor of the ThumbDrive -- has just generated significant buzz with two major developments.

These are the entry of a prominent new substantial shareholder and the release of a strong set of financial results for FY 2025.

CHART 5.26 After the market closed on May 12, Trek disclosed that Azure Prime Fund VCC - Azure Singapore Equity Fund managed by well known fund manager Terence Wong has entered into an agreement to acquire 22,074,000 shares.

The stock jumped 53% today to 17.7 cents, bringing the year-to-date gain to an impressive 70%.

Executed via an off-market deal, the transaction involved a total consideration of S$2,648,880, translating into 12 cents/share.

Pending completion, this acquisition gives the fund a solid 7.3% stake in Trek.

FY2025 Results = Turnaround

The arrival of a specialized equity fund as a substantial shareholder signals significant untapped value in a stock.

In Trek's case, just months prior, Trek reported a turnaround in its FY2025 results.

Revenue dipped 1.1% to US$19.6 million but net profit attributable to owners came in at US$4.6 million (S$5.9 million) compared to just US$0.3 million the previous year.

Management credits this success to strict financial prudence and a strategic shift toward prioritizing highly profitable projects.

This pushed the company's gross profit up by 128.8% to US$2.4 million, while gross margins expanded by 6.9 percentage points to reach 12.1%.

The bottom line was also bolstered by the recognition of US$6.9 million in other income mainly due to the gain on disposal of an unquoted equity investment.

AI Power

"Our recent partnership to co-develop an AI-powered solution tailored for the aviation sector underscores our proprietary technologies capabilities in supporting high-performance, data-intensive applications."
-- Wayne Tan, Executive Chairman & Group President, Trek 2000

Riding the AI Wave and Future Outlook

A massive driver is its Artificial Intelligence of Things (AIoT) segment, which was the key revenue contributor, accounting for 93.2% of total sales revenue in FY2025.

Looking ahead, Executive Chairman Wayne Tan emphasized the company's commitment to leveraging its proprietary technologies for high-performance, data-intensive AI applications.

S$42.9 M Liquid Assets

Trek is sitting on a solid balance sheet.

Stock price	17.7 c
52-week range	6.2-18.8 c
Market cap	S$53.5m
52-week change	71.8%
PE (ttm)	8.9
Dividend yield	--
P/B	0.8
Source: Yahoo!

The group boasts a high-liquidity position of US$33.7 million (ie US$27.3 million in cash and cash equivalents and US$6.4 million in short-term investments) and operates with zero borrowings.

This war chest provides a solid foundation for intensified R&D in AI-powered applications, renewable energy solutions, and a recent partnership to co-develop an AI solution for the aviation sector.

Despite anticipating a volatile macroeconomic environment, Trek’s strategy combines a pristine balance sheet, a focus on profitable AIoT innovation, and the backing of a new substantial shareholder to see it into a new chapter of growth.

New Chapter for Trek 2000: Azure Fund Steps In Amidst Strong FY25 Results

You may also be interested in: