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馃搶 *Helicopter Crash Unrelated:* The recent helicopter crash in Sarawak has no link to GTA鈥檚 operations. The aircraft was fitted with a Rolls-Royce engine, not a Safran engine.
馃搶 *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.
馃搶 *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.
馃搶 *MRO Expansion:* MRO expansion into landing gear, wheels, and brakes is progressing as scheduled for a 1Q27 rollout.
馃搶 *Solid Fundamentals & LTAT assurance:* Core operations remain unaffected, with management anticipating robust 3Q results. LTAT has also reaffirmed its institutional backing.
馃搱 *Valuation & Recommendation*
馃搶 The recent weakness in GTA鈥檚 share price appears driven by panic selling linked to the Sarawak helicopter incident (which does not involve Safran engines), alongside broader regional market softness.
馃搶 GTA鈥檚 core thesis remains solid, supported by recurring sovereign defense contracts, upcoming national budget catalysts, and strong backing from cornerstone investor LTAT.
馃搶 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.