PETALING JAYA: Alpha IVF Group Bhd’s profit margins are expected to improve gradually as new fertility centres commence operations, following higher expansion expenses that weighed on its first-quarter (1Q) performance, according to TA Research.
“Alpha Tuguegarao and Alpha Jakarta recently opened in October, while Alpha Johor remains on track to commence operations by end-2026, followed by the centre in Bali in the middle of 2027.”
The new centres are expected to achieve profitability within their first five months of operations. Alpha IVF invested RM11.7mil in the Tuguegarao facility, its second full-fledged in-vitro fertilisation (IVF) centre in the Philippines and Northern Luzon’s first such facility.
Serving a population of about 23.2 million people, the centre can perform up to 500 egg retrieval procedures annually and offers fertility preservation, generic testing and other reproductive services.
The expansion is part of the company’s strategy to establish a regional IVF network across South-East Asia, said group managing director Datuk Colin Lee Soon Soo.
The latest openings bring its network to eight full-fledged centres across Malaysia, Singapore, Indonesia and the Philippines.
For the first quarter ended Aug 31, 2026 (1Q26), Alpha IVF’s revenue rose 1.5% year-on-year to a record RM52.88mil, while net profit eased to RM15.12mil from RM15.28mil.
TA Research attributed the 4.8% decline in pre-tax profit to RM20mil to higher pre-operating expenses, including staff training and renovations.
Its pre-tax profit margin narrowed by 2.5 percentage points to 37.8%. However, net profit increased 8.7% quarter-on-quarter, supported by a lower effective tax rate and stronger earnings from Singapore.
Malaysia remained the largest revenue contributor at RM45.7mil, down from RM47.9mil a year earlier.
Local patient revenue increased 12.1% to RM16.8mil, partially offsetting a 12.3% decline in foreign patient revenue to RM28.9mil. Singapore’s revenue rose 29.5% to RM5.1mil.
Lee said the group would focus on increasing patient volumes at existing centres and expanding overseas operations, including attracting patients from the Middle East and Indochina.
Meanwhile, shareholders approved its proposed transfer from the ACE Market to Bursa Malaysia’s Main Market, which TA Research expects it to be completed in 4Q26.
The research firm maintained its earnings forecasts, “buy” recommendation and target price of 33 sen.
