Safe Fertility Group Public Company Limited

Krungsri Securities Public Company Limited recommends buying shares of Safe Fertility Group Public Company Limited, or SAFE, with a 2027 target price of 9.80 baht based on a DCF valuation using a WACC of 9.7%. It views the stock's 2027 PE of 12 times as below the average forward PE by one standard deviation and below book value per share at a PBV of under 1 time, which limits downside relative to medium- to long-term recovery prospects. The main rationale is that the business sits within a megatrend of government support for childbearing in many countries. If Thailand relaxes its surrogacy law, it would help expand the market and raise the value of services per case over the long term, while foreign customer momentum looks set to recover in the second half. Management expects second-half revenue to grow better than the first half, driven by improving signs in service usage among foreign clients and better NGG revenue from joined embryonic chromosome screening under the National Health Security Office project. Meanwhile, Finansia Syrus Securities Public Company Limited expects profit in the second half of 2026 to recover continuously but only slightly, with first-half net profit accounting for about 45% of its 2026 net profit forecast, which is expected to grow 6% from the same period a year earlier. It maintains a target price of 7.25 baht and a hold recommendation, noting that although upside remains open, the IVF market is still recovering slowly and geopolitical risks continue to pressure foreign customers.

SAFE Fertility Group Public Company Limited (SAFE) reported first-half results with net profit attributable to the parent company of 63 million baht and revenue from sales and services of 347 million baht. The company is preparing to open a new in-vitro fertilization (IVF) laboratory within Chiang Rai Prachanukroh Hospital, managed by NGG Thailand under SAFE Fertility Group PCL. The lab is expected to begin operations by October 2026, aiming to expand access to infertility treatment in the northern region. The company is also pursuing digital marketing through specialist physicians on social media platforms such as TikTok and Facebook to build brand awareness, highlighting its high safety standards and the PGTSeq-A technology from Juno in the United States, which helps increase pregnancy rates and reduce miscarriage rates.

Safe Fertility Group Public Company Limited, or SAFE, reported a net profit attributable to the parent of 29 million baht for the second quarter of 2026, with revenue from sales and services of 173 million baht. This brings first-half accumulated profit to 63 million baht and total revenue to 347 million baht. The performance was supported by government policies subsidising in-vitro fertilisation to address low birth rates, and the Department of Health Service Support's move to certify 134 assisted reproduction facilities nationwide, which will help expand the customer base and boost future revenue. The company is pursuing an aggressive strategy to penetrate the high-purchasing-power LGBTQ+ segment, particularly DINKs, through egg freezing and sperm freezing services, in anticipation of the enforcement of the marriage equality law and the unlocking of surrogacy legislation. This is expected to drive the IVF industry to leapfrog growth of two to three times. In addition, SAFE plans to expand its business through partnerships with private and public hospitals in major provinces, to enhance IVF service capabilities and create long-term mutual growth.

Safe Fertility Group Public Company Limited, or SAFE, has joined forces with JUNO Genetics, a global partner from the United States, to participate in the 42nd ESHRE international scientific congress in London, United Kingdom, aiming to raise the standard of infertility treatment to an international level. Led by Dr. Wiwat Kwangkananurak, Chief Executive Officer, and Dr. Sujin Chanchamroen, Chief Laboratory Officer, along with a team of physicians and embryologists, this participation seeks to exchange knowledge and update the latest innovations in assisted reproductive technology. Insights from world-class experts will be applied to further develop treatment approaches and deliver the best possible outcomes for patients.

Safe Fertility Group, or SAFE, is laying out strategies to capture the IVF market, riding on Thailand's revised surrogacy law and surging global demand. The company expects second-half 2026 revenue to grow faster than the first quarter, driven by rising patient numbers both domestically and internationally, along with full-quarter revenue recognition from its laboratory business. Krungsri Securities estimates the global IVF market will grow at an average of 6 to 9 percent per year between 2024 and 2030. SAFE has a strong customer base of both Thai and foreign patients and is expanding partnerships with leading hospitals, including the launch of joint laboratory services with Chiangrai Prachanukroh Hospital from the second quarter of this year. The average monthly number of egg retrieval and embryo transfer cycles in the first quarter of 2026 stood at 83 cycles, with an improving trend, especially from Indian clients increasingly opting for services in Thailand. Management noted that profit margins are set to improve as patient volumes rise, allowing the company to benefit from operating leverage and supporting profit growth at a faster pace than revenue.