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📌 *Helicopter Crash Unrelated:* The recent helicopter crash in Sarawak has no link to GTA’s operations. The aircraft was fitted with a Rolls-Royce engine, not a Safran engine.
📌 *Regional Expansion Progress:* Near-term announcements regarding expansion into Brunei are expected soon, followed by Middle East announcements by year-end, according to the management.
📌 *Contract Renewals on Track:* Management is progressing the renewal of the In-Service Support (ISS) contract, targeted to commence in 1Q27 to secure 3-year revenue visibility, pending official LOA issuance.
📌 *MRO Expansion:* MRO expansion into landing gear, wheels, and brakes is progressing as scheduled for a 1Q27 rollout.
📌 *Solid Fundamentals & LTAT assurance:* Core operations remain unaffected, with management anticipating robust 3Q results. LTAT has also reaffirmed its institutional backing.
📈 *Valuation & Recommendation*
📌 The recent weakness in GTA’s share price appears driven by panic selling linked to the Sarawak helicopter incident (which does not involve Safran engines), alongside broader regional market softness.
📌 GTA’s core thesis remains solid, supported by recurring sovereign defense contracts, upcoming national budget catalysts, and strong backing from cornerstone investor LTAT.
📌 Trading at a compelling 9x P/E, we view this sell-off as an accumulation opportunity. We maintain our Fair Value of RM0.58, pegged to a 17x P/E multiple.
