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Open to apply: 01 March 2024

Close to apply: 08 March 2024

Balloting: 12 March 2024

Listing date: 22 March 2024

Share Capital

Market cap: RM1,5552 bil

Total Shares: 4.860 bil shares

Industry CARG

Number of ART Cycles in Singapore 2015-2019: 5.2%

Total Fertility Rate in Malaysia 2011-2022: -3.1%

Number of Live Births in Malaysia 2017-2022: -4.2%

Total Fertility Rate in Singapore 2012-2022: -2.1%

Number of Live Births in Singapore 2018-2022: -2.0%

Industry competitors comparison (net profit%)

1.Alpha Group: 39.9%

2.KL Fertility & Gynaecology Centre S/B: 26%

3.Ecofiesta S/B: 25%

4.Metro Healthcare Berhad: 12.5%

5.Others: -317.4% to 30.2%

Business (FYE 2023)

Fertility care specialist focusing on the provision of assisted reproductive services.

Revenue by Geo

1.Selangor centre: 52.25%

2.Penang Centre: 27.5%

3.Singapore: 20.25%

Fundamental

1.Market: Ace Market

2.Price: RM0.32

3.Forecast P/E: 29.2

4.ROE(Pro Forma III): 35.46%

5.ROE:  100.43%(FPE2023), 38.98%(FPE2022), 4.75%(FYE2021), 12.19%(FYE2020)

6.Net asset: 0.0314

7.Total debt to current asset: 0.2465 (Debt: 39.656 mil, Non-Current Asset: 33.304mil, Current asset: 160.850mil)

8.Dividend policy: 60% PAT dividend policy.

9. Shariah status: –

Past Financial Performance (Revenue, Earning Per shares, PAT%) 

2023 (FPE Oct, 5 mths): RM65.904 mil (Eps: 0.0044), PAT: 32.18%

2023 (FYE,31May): RM99.562 mil (Eps: 0.0011), PAT: 39.85%

2022 (FYE 31May): RM91.094 mil (Eps: 0.0047), PAT: 25.23%

2021 (FYE 31May): RM62.063 mil (Eps: 0.0005),PAT: 3.71%

2020 (FYE 31May): RM68.955 mil (Eps: 0.0007),PAT: 5.02%

***EPS above using 4.860bil shares as diluted EPS.

***EPS in prospecture draft doesn’t use 4.860bil shares to calculate diluted EPS

Major customer

Business does not have single major customer.

Major Sharesholders 

1.Dato’ Dr. Lee Soon Soo, Colin: 34.01% (direct)

2.Lee Soon Ai: 8.91% (direct)

3.Dr. Ng Peng Wah: 8.32% (direct)

4.ACE Specialists: 9.15% (direct)

5.Dr.Leong Wai Yew : 6.58% (direct)

Directors & Key Management Remuneration for FYE2024

(from Revenue & other income forecast FPE2023 GP)

Total director remuneration: RM8.2115 mil

key management remuneration: RM1.35 mil – RM1.6 mil

total (max): RM9.8115 mil or 12.80%

Use of funds

1.Establishing new medical centres, satellite clinics and sales representative offices: 62.41%

2.Expansion and upgrade of existing medical centres, facilities and corporate office: 13.46%

3.Research and development: 1.89%

4.General working capital: 14.89%

5.General corporate purposes: 2.23%

6.Estimated listing expenses: 5.32%

Conclusions (Blogger is not wrote any recommendation & suggestion. All is personal opinion and reader should take their own risk in investment decision)

Overall is a good IPO & good business. But price offer at PE29.2 is not in discount. 

*Valuation is only personal opinion & view. Perception & forecast will change if any new quarter result release. Reader take their own risk & should do own homework to follow up every quarter result to adjust forecast of fundamental value of the company.

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• Source: http://lchipo.blogspot.com/2024/03/alpha-ivf-group-berhad.html