GTA Holdings Poised for Significant Growth, Fair Value Set at 58 Sen

GTA Holdings Berhad (GTA) presents a significant investment opportunity, with Malacca Securities establishing a fair value of 58 sen per share. This valuation represents a substantial 65.7% premium over the company's initial public offering (IPO) price of 35 sen.

The research firm's projection is based on a forward price-to-earnings (P/E) multiple of 17 times for the 2027 financial year. This reflects strong confidence in GTA's growth trajectory within Malaysia's aviation maintenance, repair, and overhaul (MRO) sector. Through its subsidiary, Global Turbine Asia Sdn Bhd, GTA offers MRO services for helicopter and fixed-wing aircraft engines, modules, and components, alongside supplying aviation equipment to both military and civilian clients.

GTA's competitive edge is further bolstered by its unique position as the sole Safran Certified Maintenance Centre in Malaysia and an Approved Maintenance Organization (AMO) for EPI. These credentials create high barriers to entry for potential competitors. A key strength highlighted by Malacca Securities is GTA's long-standing relationship with the Ministry of Defence (Mindef), which contributes a significant portion of the group's revenue through multi-year maintenance support contracts. These contracts, including Availability Support Packages (ASP) and In-Service Support (ISS), ensure predictable recurring revenue and stable cash flow.

Looking ahead, GTA plans to broaden its MRO services to include landing gear, wheels, and brakes for aircraft. The company also aims to explore market opportunities in Brunei and West Asia. Proceeds from the IPO will fund the establishment of new operational facilities and support future growth initiatives. Malaysia's MRO industry is poised for expansion, projected to grow from RM13.81 billion in 2025 to RM22.15 billion by 2030. Given its specialized market position, robust government ties, and attractive valuation, GTA is positioned as a noteworthy new listing in Malaysia's aerospace and defense support industry.

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The contract covers Availability Support Package (ASP) and In-Service Support (ISS), which provide recurring revenue visibility and more predictable cash flow.