Background

Alpha IVF Group Berhad (Alpha IVF) is a renowned fertility care specialist, currently operating two specialist centres in Malaysia and one in Singapore.

IPO Statistic

The IPO entails a public issue of 364.5mn new shares and offer for sale of 1,093.5mn existing shares. Collectively, the share offers account for 30.0% of the group’s enlarged issued share capital.

Competitive Advantages and Investment Highlights

1. Established Brand and Track Record;

2. Experience of Key Medical Specialist; and

3. Medical Tourism and Declining Fertility Rate.

Valuation

At the IPO price of RM0.32/share, Alpha IVF is priced at a trailing PE of 29.2x FY23 EPS. As we assign a target PE of 23.0x FY25F EPS, we derive a fair value of RM0.28/share. Our valuations have taken into consideration the group’s experienced management team, arguably that most wide-ranging fertilityrelated treatment services in the region and high standards in IVF. On top of that, we have also considered Alpha IVF’s rich margins and medium-to-long term earnings growth prospects, which are backed by growing medical tourism and declining total fertility rate. Not Rated.

Business Overview

Since inception in 2011, Alpha IVF has garnered a strong reputation, with its brand name synonymous with exceptional success rates for Assisted Reproductive Services (ARS). Other assisted reproductive procedures includes intracytoplasmic sperm injection, intrauterine insemination, various diagnostics, testing and screening procedures as well as cryopreservation of eggs, sperms and embryos.

Today, the group operates two specialist centres in Malaysia (Alpha KL and Genesis in Penang) and one specialist centre in Singapore (Alpha Singapore) which focuses on in-vitro fertilisation (IVF) services. At the heart of its success lies a team of 12 medical specialists in Obstetrics and Gynaecology, who are supported by 30 nurses, 2 anaesthesiologists, 1 urologist as well as 30 embryologists and 2 geneticists.

Source: TA Research - 7 Mar 2024