Alpha IVF charts growth path with record revenue of RM199mil in FY26

PETALING JAYA: Analysts are forecasting a stronger trajectory for Alpha IVF Group Bhd.

So far, the fertility centre has been making steady progress, delivering a record high revenue of RM198.6mil in its financial year of 2026 (FY26), driven by strong growth at Alpha KL and Alhaya.

TA Research said Malaysia remained the group’s core market, contributing 90% of FY26 revenue.

“Supported by robust demand for IVF services, revenue from local patients rose 24.6% to RM58.6mil, while revenue from foreign patients increased 9.1% to RM120.1mil,” it noted.

Its net profit, however, had declined 6.6% on a yearly basis due to the RM5mil utilised for pre-operating expenses in the group’s expansion plans.

Alpha IVF had launched two new full-fledged IVF centres in Sabah and Manila, increasing its total number of full-fledged centres to six.

In addition to that, Alpha IVF has recorded the same expenditure for four more of its upcoming centres.

The research house said it expects the group’s earnings before interest, taxes, depreciation, and amortisation to remain under short-term pressure at approximately 41% in the current quarter, below its historical norm of around 46%.

On the other hand, margins are likely to improve from the second quarter of 2027 as the four upcoming centres move closer to completion.

The research firm forecast Alpha IVF’s net profit to surge 21.9% on a yearly basis, underpinned by improving operating leverage and contributions from its expanding network.

“Among these, the Johor, Tuguegarao and Jakarta centres are slated to commence operations by end-2026, while the Bali centre remains on track for a mid-2027 opening.

“The management expects all four centres to achieve profitability within five months of opening and to contribute more meaningfully as the centre ramps up.”

Furthermore, revenue from its operations in Indonesia is expected to rebound and grow 6.8% in FY27 as patients adapt to the new pricing environment.

The research firm said Chinese patients have continued to grow as well, while Alpha IVF plans to increase its marketing efforts in Cambodia and Bangladesh.

“The group also expects to attract more patients from Hong Kong, Vietnam, the United States, the United Kingdom, India, Australia and Brunei, supported by its strong pregnancy success rates and established reputation.”

With that, TA Research said Alpha IVF’s growth will be supported by a turnaround in the Singapore operations, and contributions from its new centres.

“We reiterate our ‘buy’ recommendation on Alpha IVF with a target price of RM0.33 per share, based on an unchanged 22 times CY27 earnings per share.

“The stock offers a decent CY27 dividend yield of 4.7%.”

Separately, TA Research said the fertility group is likely to transfer to the Main Market of Bursa Malaysia by the end of the year as it has fulfilled the requirements under the accelerated transfer framework.