TA Securities Holdings Bhd has assigned GTA Holdings Bhd a fair value of 39 sen per share, implying an 11.43% upside to its 35 sen IPO price, as the aviation maintenance, repair and overhaul (MRO) specialist gears up for its ACE Market listing.
The research house valued GTA at 11 times its forecast FY27 core earnings per share, applying a 30% discount to the 15.6 times average CY27 forward price-earnings ratio of selected peers to reflect the group’s smaller market capitalisation.
TA Securities said GTA’s growth prospects would be supported by the expansion of its MRO capabilities into landing gear, wheels and brakes, which are expected to progressively contribute new recurring revenue streams from FY27. The research house also pointed to GTA’s recurring multi-year government contract base and a positive industry outlook as key valuation drivers.
GTA, which has more than a decade of experience in Malaysia’s aviation MRO industry, provides maintenance services for helicopter and fixed-wing aircraft engines, auxiliary power units and related components. TA Securities noted that the company is also the sole authorised supplier in Malaysia of Safran and EPI-branded aircraft engines, modules, parts and components.
The IPO comprises a public issue of 205 million new shares and an offer for sale of 124 million existing shares at RM0.35 apiece. Based on the enlarged share capital of about 1.29 billion shares, GTA will have a market capitalisation of roughly RM452 million upon listing, which is tentatively scheduled for Sept 8.
GTA is expected to raise gross proceeds of RM71.8 million from the public issue, with RM25 million earmarked for a new operating facility, RM10 million for expanding helicopter MRO activities in the Middle East and RM5.9 million for its move into landing gear, wheels and brakes MRO. Another RM24.2 million will be used for working capital.
TA Securities expects GTA’s earnings growth to moderate in FY26 as its Floating Stocks Contract approaches fulfilment, before accelerating again from FY27 as new MRO revenue streams come on board. The research house forecasts core earnings of RM41.6 million in FY26, rising to RM44.6 million in FY27 and RM47.9 million in FY28.
The brokerage added that the longer-term industry backdrop remains supportive, with the Asia-Pacific MRO market forecast to grow at a compound annual rate of 6.1% from US$30.3 billion in 2025 to US$40.7 billion by 2030, outpacing projected global industry growth of 5.1%.
Still, TA Securities flagged GTA’s heavy reliance on government contracts, dependence on two major suppliers — Safran and EPI — and the risk of licence revocation or non-renewal as key business risks.
