What is the news?
Service agreement with KL Fertility & Gynaecology Centre Sdn. Bhd. (“KL Fertility Centre”) on 3 Oct-17
How does it work?
Nonetheless, specialists from both SOG and KL Fertility Centre would work hand in hand throughout the entire cycle.
What do we think?
Maintained Buy rating with TP of S$0.65 based on FY18e EPS of 2.24 Cents pegged to a forward PER of 29x.
Figure 1: One full IVF cycle
What are IVF and ICSI?
Figure 2: ICSI Procedures
Source: Singhealth website
How does SOG differ?
Based on a report on IVF, published by MOH in 2004:
In 2002, 67% of the IVF cycles was done in public IVF centres, and 33% in private.
There were more private IVF centres set up since 2002, e.g. Raffles Medical Group and Sincere Healthcare Group. We believe that the mix should remain around 70:30.
Singapore government has instituted measures to relieve the financial burden and to push for higher fertility rate
MOH has co-funded 3,512 assisted reproduction cycles in 2015, up from 3,173 cycles in 2014 and 2,749 cycles in 2013.
The IVF market in Singapore is estimated to worth over S$75mn.