PETALING JAYA: Fertility care specialist Alpha IVF Group Bhd’s outlook remains sustainable despite its latest earnings falling short of expectations.
This was due to mounting expansion costs and slower patient growth following the sales and service tax (SST) hike.
Analysts continued to stay positive on the company’s outlook even though its nine-month (9M26) core earnings released recently fell short of expectations.
Tradeview Capital said the company’s 9M26 core earnings in financial year 2026 (FY26) of RM39.7mil came in below expectations, representing 65% and 67% of its forecasts and consensus estimates respectively.
It blamed the results on expansion-related costs mounting and lower foreign patient inflows after the SST hike, noting that these factors have temporarily squeezed profitability.
“The negative variance was primarily driven by higher expenses arising from pre-operational costs and lower sales assumptions on foreign patients due to SST implementation,” it said.
The research house has maintained a “buy” call on the stock but cut the target price to 36 sen from 42 sen.
It remains cautiously optimistic that ongoing regional expansion and strong fundamentals would support earnings recovery over time.
Tradeview Capital also trimmed its forecast earnings by 11% to 17% for FY26 to FY28, after raising cost assumptions by 5% to 11% to reflect higher pre-operational expenses tied to Alpha IVF’s ongoing expansion.
