Latest news with #AlphaIVF
New Straits Times
28-05-2025
- Business
- New Straits Times
Fertility fatigue weighing on Alpha IVF shareholders
KUALA LUMPUR: When Alpha IVF Group Bhd delivered its initial public offering (IPO) in March last year at 32 sen per share, the mood was expectant, much like the clients it serves. As a specialist in fertility treatments, Alpha IVF operates in a resilient, emotionally resonant niche of the healthcare sector, industry observers said. The outlook seemed strong, with its compelling narrative and branding on point. But fast forward a year, and the share price has dipped to around 28 sen, despite glowing brochures, media coverage and several investor briefings. At midday today, the stock settled 1.75 per cent lower at 28 sen. Year-todate, it has shed 17.65 per cent or six sen. The company may help create new life, but on Bursa Malaysia, investors are now asking why Alpha IVF is not breathing more life into its financial performance. Administrative Costs: A Growing Burden In its third quarter of financial year 2025, Alpha IVF reported a 12.4 per cent decline in net profit, even as revenue increased. Why? A 76.4 per cent surge in administrative expenses, which ballooned to RM9.56 million, the observers said. These include staff costs, professional fees and other operating overheads. The message to investors: revenues are growing, but profits are not keeping up. Margins Under Pressure From a net profit margin of 39 per cent in FY2023, Alpha IVF slipped to 32 per cent in FY2024. In a high-stakes industry where precision and people matter, cost control is always tricky but the margin squeeze is triggering doubts about how scalable and efficient the business model truly is, the observers said. Earnings Quality: Real or Just on Paper? Another worry lies in the company's accrual ratio of 0.42. While Alpha IVF is profitable on paper, the ratio implies that a significant chunk of that profit isn't flowing into its coffers as cash, the observers said. For discerning investors, strong cash flow is the bedrock of trust. The fear? Profits without liquidity could mean trouble during expansion or downturns. Lofty Valuation With a current price-to-earnings (P/E) ratio of 26 times, Alpha IVF is trading above its estimated fair value of around 22.3 times. The observers said that kind of premium demands near-flawless execution, and the company's recent numbers have not yet delivered the confidence to justify such a valuation. Sentiment: From Excitement to Uncertainty The observers said despite experienced doctors, high-tech labs and a vital social mission, Alpha IVF is grappling with what some call "fertility fatigue" - not among patients, but among shareholders. The promise of a growing fertility market remains, but costs are rising, earnings quality is in question and the stock has been slow to excite post-listing. Can Alpha IVF deliver? The observers said fertility is not just about hope - it's about timing and preparation. "The same holds for markets. Alpha IVF has the expertise, branding and sector advantage. But to regain momentum, it must deliver stronger margins, healthier cash flow, and strategic clarity," one observer said. Until then, it may continue to be the company that helps deliver babies, but not yet the financial results its shareholders were expecting, the observer added.
Yahoo
21-05-2025
- Business
- Yahoo
With 65% ownership, Alpha IVF Group Berhad (KLSE:ALPHA) insiders have a lot riding on the company's future
Insiders appear to have a vested interest in Alpha IVF Group Berhad's growth, as seen by their sizeable ownership A total of 3 investors have a majority stake in the company with 53% ownership Institutions own 15% of Alpha IVF Group Berhad Our free stock report includes 1 warning sign investors should be aware of before investing in Alpha IVF Group Berhad. Read for free now. To get a sense of who is truly in control of Alpha IVF Group Berhad (KLSE:ALPHA), it is important to understand the ownership structure of the business. With 65% stake, individual insiders possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn). So, insiders of Alpha IVF Group Berhad have a lot at stake and every decision they make on the company's future is important to them from a financial point of view. In the chart below, we zoom in on the different ownership groups of Alpha IVF Group Berhad. See our latest analysis for Alpha IVF Group Berhad Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices. As you can see, institutional investors have a fair amount of stake in Alpha IVF Group Berhad. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Alpha IVF Group Berhad, (below). Of course, keep in mind that there are other factors to consider, too. Hedge funds don't have many shares in Alpha IVF Group Berhad. The company's CEO Soon Lee is the largest shareholder with 35% of shares outstanding. With 9.2% and 8.9% of the shares outstanding respectively, ACE Specialists Sdn Bhd and Soon Ai Lee are the second and third largest shareholders. To make our study more interesting, we found that the top 3 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company. Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track. The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it. Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group. Our information suggests that insiders own more than half of Alpha IVF Group Berhad. This gives them effective control of the company. Given it has a market cap of RM1.4b, that means they have RM903m worth of shares. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling. The general public, who are usually individual investors, hold a 10% stake in Alpha IVF Group Berhad. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders. Our data indicates that Private Companies hold 9.7%, of the company's shares. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company. It's always worth thinking about the different groups who own shares in a company. But to understand Alpha IVF Group Berhad better, we need to consider many other factors. Case in point: We've spotted 1 warning sign for Alpha IVF Group Berhad you should be aware of. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
The Star
22-04-2025
- Business
- The Star
Alpha IVF Group eyes regional expansion
The company's revenue for 3Q24 grew 12.2% to RM43.24mil. KUALA LUMPUR: Alpha IVF Group Bhd is targeting to operate a total of at least 15 facilities, covering Malaysia, Indonesia, China, the Philippines, and Singapore by the financial year ending May 31, 2027. The fertility care specialist currently operates four full-fledged IVF centres across Malaysia and Singapore, along with two sales and representative offices in China. For the next 12 months, Alpha IVF expects two additional IVF centres in Malaysia, two IVF centres in South East Asia and four satellite clinics in Indonesia will be operational, it said in a filing with Bursa Malaysia. In the third quarter ended Feb 28 (3Q25), Alpha IVF posted a lower net profit of RM11.9mil, or earnings per share of 0.24, compared with RM13.6mil, or 0.30 sen in the year-ago quarter. Revenue for the quarter stood at RM40.6mil against RM40.7mil posted last year. In the nine months to Feb 28, the group posted a net profit of RM41.4mil, up 6.3% from RM38.9mil a year ago, while revenue rose 5% to RM126.8mil from RM120.8mil previously. Alpha IVF attributed the improved performance primarily to continued growth in its foreign patient segment within its Malaysian operations during the period. The growing foreign patient base underscores Alpha IVF Group's strong regional presence and reputation for delivering world-class fertility care. 'As we move forward, our strategy remains consistent – to grow both organically via our existing centres and through regional expansion initiatives. 'We believe the steps we are taking to expand access to our fertility treatment services in the region will not only strengthen our regional presence but also deliver long-term value for our shareholders,' group managing director Datuk Dr Colin Lee Soon Soo said in a statement.
