<div id="readability-page-1"><div><p>[SINGAPORE] Investors have been piling into little-known Singapore-listed tech micro-caps worth as little as S$50 million, sending some counters soaring to multi-year highs in recent weeks.</p><p>Semiconductor manufacturer  Asti Holdings , which has a market capitalisation of about S$150 million, has surged more than 120 per cent in the past month.</p><p>Shares of  Avi-Tech Holdings , valued at just under S$50 million, climbed 70 per cent over the same period to a four-year high of S$0.3150 on<strong> </strong>May 7.</p><p>The rallies gathered pace after strategic investors increased their stakes in these counters in the past week.</p><p>On May 6, Asti chief executive Eddie Ng acquired 40 million shares for S$3.6 million in an off-market transaction, becoming the company’s controlling shareholder. </p><p>A day later, retail investor Global Wave Ventures disclosed the acquisition of more than 50 million shares in Avi-Tech, giving it a 29.9 per cent stake.</p><div><div><h3>Navigate Asia in<br/>a new global order</h3><p>Get the insights delivered to your inbox.</p></div></div><p><em>The Business Times</em> looks at what is fuelling the surge in these tiny tech counters, and whether the momentum can last.</p><h2>Riding the tech rally</h2><p>Interest in these smaller-cap stocks comes amid a broader global tech rally.</p><p>The iShares Semiconductor ETF (exchange-traded fund), which tracks major global chip stocks, surged 40 per cent in April, marking its biggest monthly gain on record. </p><div><div><div><p>SEE ALSO</p><div><div><div><div><p><img height="4128" src="https://imageproxy.pbkrs.com/https://cassette.sphdigital.com.sg/image/businesstimes/129f0013b550c15ec4d9d86c1cb70439373d9aa63d42d823453469e315ba392b/query-ZHByPTEmZj13ZWJwJnc9MjQw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="6192" original-src="https://imageproxy.pbkrs.com/https://cassette.sphdigital.com.sg/image/businesstimes/129f0013b550c15ec4d9d86c1cb70439373d9aa63d42d823453469e315ba392b/query-ZHByPTEmZj13ZWJwJnc9MjQw"/></p></div><p></p><h3><span>Share of female board chairs at top 100 SGX listcos edges up to 10%: diversity council</span></h3><p></p></div></div><div><div><div><p><img height="4128" src="https://imageproxy.pbkrs.com/https://cassette.sphdigital.com.sg/image/businesstimes/f8864a41cff14445088665c67dab816368cd3f80cf956b38f3ebc7dfb409c074/query-ZHByPTEmZj13ZWJwJnc9MjQw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="6192" original-src="https://imageproxy.pbkrs.com/https://cassette.sphdigital.com.sg/image/businesstimes/f8864a41cff14445088665c67dab816368cd3f80cf956b38f3ebc7dfb409c074/query-ZHByPTEmZj13ZWJwJnc9MjQw"/></p></div><p></p><h3><span>These stocks rerated after strategic moves. Can they inspire others to do the same?</span></h3><p></p></div></div></div></div></div></div><p>The rally extended beyond leading chipmakers to smaller firms involved in legacy chips and semiconductor infrastructure.</p><p>Analysts noted that many semiconductor and precision-engineering firms listed on the Singapore Exchange (SGX) supply major US-listed technology companies, causing their share prices to move in tandem with those of global peers and customers.</p><p>For instance, the shares of precision-engineering firm  Frencken Group , whose customers include chip-equipment makers ASML and Applied Materials, have risen about 110 per cent since the start of the year.</p><p>Likewise, the rally in Avi-Tech Holdings has tracked gains in semiconductor customer Texas Instruments amid rising demand linked to data-centre expansion, said Chong Yik Ban, research analyst at Phillip Securities Research.</p><p>The rally is also being driven by investors hunting for lower-valued tech stocks with catch-up potential.</p><p>Terence Wong, founder and chief executive of Azure Capital, said investors are increasingly rotating into smaller tech counters, with larger bellwether stocks having become more expensive following strong gains.</p><p>“They are starting to look for stocks with potential which have not yet risen, or have not risen as much,” he said. “That is why you are seeing growing interest in lesser-known names.”</p><p>Asti, in particular, has attracted investor interest due to its compelling “turnaround” narrative, said Phillip’s Chong.</p><p>The company, which was suspended from trading in 2022 due to persistent losses and governance issues, has since completed several overdue shareholder meetings, appointed new auditors and improved its financial performance.</p><p>It also narrowed its losses sharply to S$468,000 in Q4 FY2025, from S$20.3 million in Q4 FY2024.</p><h2>How long will the rally last?</h2><p>Analysts say the tech rally still has room to run, with Phillips’ Chong expecting momentum to persist through the end of this year.</p><p>He added that potential initial public offerings from US AI firms such as OpenAI and Anthropic in the second half of 2026 could provide fresh catalysts for semiconductor stocks.</p><p>On local micro-caps, Chong noted that while Avi-Tech’s recent results remain lacklustre, with gross profit of S$700,000 and a net loss of S$1 million for H1 FY2026 ended Dec 31, its shares could benefit from stronger outlook signals from key customer Texas Instruments in the coming quarters.</p><p>Asti, meanwhile, could gain from expanding demand for integrated circuit testing in industrial and automotive applications, he said.</p><p>SGX market strategist Geoff Howie said Avi-Tech’s value now sits in a net cash position and low leverage, after the company opted not to pay an interim dividend to preserve capital.</p><p>This supports operational stability and allows redeployment into efficiency improvements and selective growth areas, he added.</p><p>For Asti Holdings, he described CEO Ng’s increased stake as a way to strengthen control as the company emerges with a “reset” balance sheet and a return to profitability.</p><p>However, he cautioned that long-term value would depend on execution and scalability of its semiconductor services platform.</p><p>Despite the upbeat tone, observers warned that investors should remain selective.</p><p>“Investors have to practise caution in trading smaller and thinly traded counters, by checking on the appropriate valuations to enter the market,” Chong said.</p><div><p>Decoding Asia newsletter: your guide to navigating Asia in a new global order. <span>Sign up here to get Decoding Asia newsletter.</span> Delivered to your inbox. 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<p>Investors are increasingly buying into lesser-known Singapore-listed tech micro-caps, with some stocks like Asti Holdings and Avi-Tech Holdings seeing significant price surges. Asti Holdings' shares rose over 120% in a month, while Avi-Tech's climbed 70%. This trend is fueled by strategic investments and a broader global tech rally, particularly in semiconductor stocks. Analysts suggest that the momentum may continue, driven by demand for integrated circuit testing and potential IPOs from US AI firms. However, caution is advised for investors in these smaller, thinly traded stocks.</p>

Businesstimes News

Avi-Tech Hldg

ASTI

iShares Semiconductor ETF

Frencken

ASML

ASML Holding NV

Applied Materials

Texas Instruments

OpenAI

These little-known SGX tech stocks are beating the market. What’s driving them up?