TA Securities Holdings Bhd has initiated coverage on Alpha IVF Group Bhd with a ‘Buy’ call and a target price of 36 sen, implying a potential upside of 24.5% from its last traded price of 29 sen.
The research house cited Alpha IVF’s strong brand, industry-leading pregnancy success rates of 70%-80%, well above the global average of 60%-65%, and exceptional financial year 2025 (FY25) profit after tax margin of 32.5%, more than double regional peers’ average.
Alpha IVF, which operates three specialist centres in Malaysia and one in Singapore, is eyeing aggressive expansion to double its full-fledged IVF facilities by FY27, including new centres in Johor, Sabah, the Philippines and Indonesia’s Bali, alongside satellite clinics in key Indonesian cities.
The research house shared that medical tourism remains a major growth driver, with foreign patients contributing 70% of Malaysian revenue in FY25, led by Indonesia and China.
“This high-value segment typically spends RM70,000-RM100,000 per treatment cycle compared to RM20,000-RM50,000 for domestic patients,” it said.
TA Securities values Alpha IVF at a 23 times FY26 price-to-earnings multiple, at a premium to peers, reflecting its superior margins, robust growth prospects and potential transfer to Bursa Malaysia’s Main Market.
“Earnings are projected to grow 18.9% in FY26, 20% in FY27 and 14.7% in FY28, supported by new centres, rising Chinese patient demand and a rebound in Singapore operations.
“Furthermore, the group intends to maintain a minimum 60% dividend payout, translating into forecast yields of 3.4%-4.7% over FY26-FY28,” TA Securities noted.
