PETALING JAYA: Alpha IVF Group Bhd’s earnings prospects are expected to be supported by sustained organic growth at its four in-vitro fertilisation (IVF) specialist centres, according to TA Research.
It expected maiden contributions from its upcoming centres in Sabah, Johor, Indonesia and the Philippines to serve as key growth catalysts.
TA Research maintained its earnings forecasts and reiterated its “buy” call with a target price of 42 sen a share.
Alpha is expected to have 10 full-fledged IVF centres by 2027, more than doubling its current footprint.
With the new centres, the group is set to break new records, highlighted by its latest Alhaya IVF centre, which turned a profit in just its first month.
Alpha recently announced an acquisition of an additional 33% stake in Alhaya for RM5.8mil, raising its ownership to 87% from 54%.
Alhaya, located at KPJ Damansara Specialist Hospital 2, is Alpha’s third IVF specialist centre in Malaysia which commenced operations on April 8, 2024.
Based on TA Research’s findings, Alhaya recorded a net profit of RM1.9mil in FY25 and RM773,000 in first quarter of its financial year 2026 (1Q26).
It viewed Alpha’s move to raise its stake in Alhaya positively.
The acquisition price implied a compelling FY25 price earnings ratio of 9.2 times, according to the research house.
