KUALA LUMPUR (Oct 21): Alpha IVF Group Bhd (KL:ALPHA) reported a 2.7% quarter-on-quarter (q-o-q) increase in its first quarter net profit to RM14.38 million from RM14 million, as lower administrative expenses more than offset impact from decline in revenue.

For the first quarter ended Aug 31, 2024 (1QFY2025), the fertility care specialist's revenue fell 8% q-o-q to RM43 million, from RM46.75 million. 

Administrative expenses fell to RM7.51 million, from RM9.34 million, contributing to a higher pre-tax profit margin of 44.2%, from 41.5% in the quarter ended May. 

There were no year-on-year comparative figures as the company was newly listed in March 2024.

Alpha IVF has declared a third interim dividend of 0.45 sen per share, bringing the total dividend year to date to 1.15  sen per share.

During the reporting period, the company said the domestic operations accounted for RM35.4 million or 82.3% of its revenue in 1QFY25, with the remainder coming from its Singaporean operations.

For its Malaysia operations, foreign patients made up 71.9% contribution while local patients made up the remainder 28.1%.

Currently, Indonesian patients are Alpha IVF’s largest clientele contributing about 35% to its total revenue.

The company also saw significant growth in patients from China, which saw its contribution more than doubled from 7.5% in FY2024 to 16.2% in 1QFY2025.

In a separate statement, the company’s group managing director Datuk Dr Colin Lee Soon Soo said the company is confident of seeing continued growth in the Indonesian and Chinese markets via its growth strategy.

In terms of expansion efforts, the company had set up a new IVF centre in the Philippines, a first sales and representative office in Shanghai, China — which had commenced operations on Sept 4, 2024, and a first satellite clinic in Indonesia.

To drive patient growth from China to the Group’s IVF centres in Malaysia and Singapore, the company has signed a collaborative agreement with a leading women’s hospital in Shanghai.

On prospects, Lee said organic growth from its Malaysian centres will be further enhanced through sales representative offices in China and satellite clinics in Indonesia. 

"Regionally, we anticipate new revenue streams with the opening of full-fledged IVF centres in the Philippines and Indonesia," Lee said.

Shares in Alpha IVF closed up half sen or 1.4% to 36.5 sen, giving it a market capitalisation of RM1.77 billion.