PETALING JAYA: Alpha IVF Group Bhd plans to open four additional full-fledged in vitro fertilisation (IVF) centres by the end of 2027.
It remains optimistic about the industry’s long-term prospects, supported by trends such as delayed parenthood, robust medical tourism and rising global demand for IVF services, said TA Research.
The research house reiterated its “buy” call on the stock with an unchanged target price of 37 sen a share based on a price earnings multiple of 23 times 2027 earnings per share.
The group started operations at two new full-fledged IVF centres in December 2025, located in Kota Kinabalu (KK) and Manila, bringing its total number of full-fledged IVF centres to six.
These two centres collectively recorded revenue of RM1.5mil in the third quarter (3Q) of financial year 2026 (FY26).
Alpha KK was loss-making in 3Q due to the minimum guaranteed income paid to two doctors. It was earnings before interest, taxes, depreciation, and amortisation (Ebitda) positive in February.
Most of Alpha’s centres typically achieve breakeven within the 1Q of operations.
The expected ramp-up and stronger contribution from its two latest centres, Alpha KK and Alpha Manila, should help the group sustain its 3Q profit before tax margin of 36% into 4Q.
In addition, Alpha Singapore is expected to return to profitability by June 2026.
In the first nine months of FY26, Alpha’s Malaysian operations recorded revenue growth of 20.5% year-on-year to RM133mil, driven by stronger contributions from both local and foreign patients.
TA Research made no changes to its FY26 to FY28 earnings projections.
It said Alpha Manila, the group’s second overseas centre, was Ebitda positive in 3Q26 despite the seasonally slow period in conjunction with the Christmas and New Year holidays in the Philippines.
