Latest news with #AlphaIVFGroupBhd
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.
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.
