• GTA Holdings Berhad is principally involved in (i) the provision of MRO services for helicopter and fixed-wing engines, parts and components, and (ii) the sale of aviation equipment including new engines, engine modules and spare parts. The Group serves both military and civil aviation customers through long-term maintenance support contracts, including Availability Support Packages (ASP), Power-by-the-Hour (PBH), and In-Service Support (ISS), anchored by key engagements with the Malaysian Ministry of Defence and commercial fleet operators.
• We project 3-year earnings CAGR of 6.6%, with core PATMI expected to reach RM40.8m-RM48.9m over the next three years, supported by (i) revenue visibility anchored by multi-year ASP and ISS support contracts with Mindef Service Branches, (ii) capability expansion into new MRO categories, and (iii) geographic expansion into Brunei and the Middle East.
• We assign a fair value of RM0.58, indicating a 65.7% upside from the IPO price of RM0.35. This valuation is based on a P/E ratio of 17.0x, pegged to FY27f EPS of 3.42 sen.

Investment highlights

Malaysia’s sole authorised supplier for Safran helicopter and EPI fixed-wing engines. GTA, through its subsidiary Global Turbine Asia, is the sole Safran Certified Maintenance Centre and sole EPI Approved Maintenance Organisation in Malaysia. This exclusive positioning makes GTA the local authorised party to carry out MRO services for Safran-branded helicopter engines and EPI’s fixed-wing turboprop engines in the country. The dual OEM authorisation creates a significant competitive moat, as prospective competitors would need to independently obtain CMC/AMO certifications from both Safran and EPI, which is a multi-year process requiring extensive capital investment, technical capability demonstration, and regulatory clearance from CAAM, DGTA, and EASA. 

Entrenched government relationships with multi-year contract visibility. GTA has long-standing relationships of up to 15 years with Mindef Service Branch 1 and Branch 2, which collectively contributed 92.1% of FY25 revenue and 95.4% of FPE26 revenue. The Group secured a 5-year extension for its Heavy Helicopter Engine 1 ASP contract in 2023 and signed an ISS prime contractor appointment for Fixed-wing Engine 1 support in the same year. These long-term government contracts underpin strong revenue visibility and cash flow predictability.

Expanding MRO capability toward aircraft landing gear systems. GTA’s MRO capability has expanded from Level 1 MRO for a single helicopter engine in 2012 to covering 7 Safran products (5 helicopter engines and 2 APUs) and EPI’s Fixed-wing Engine 1 as at the LPD. The Group intends to further expand into MRO of landing gear, wheels, and brakes, with RM5.9m (8.2% of IPO proceeds) allocated toward it, which would add a new layer of recurring maintenance revenue for the Group. 

Geographical expansion into Middle East and Brunei. GTA plans to extend its helicopter MRO footprint beyond Malaysia by pursuing JV arrangements in the Middle East to offer ASP and PBH packages, backed by RM10.0m (13.9% of IPO proceeds) allocated for market access, regulatory compliance and also equipment and mobilisation costs. Concurrently, the Group signed an MOU with Safran HE in July 2026 and aims to become its authorised distributor and service provider in Brunei by end-2026, which will be serviced directly from its existing Malaysian facilities.