Q&M

Q&M: 1Q14 net profit rose 37% to $1.5m, while revenue increased 28.3% to $19.5m, on the back of a 20% increase of revenue from clinics at $17.9m, and a 471% revenue increase from distribution of dental equipment and supplies at $1.7m. Broadly, expenses increased with the expansion in operations. Q&M currently has 57 outlets in Singapore, and 8 outlets in Malaysia. Going forward, China is expected to contribute significantly to earnings, with the acquisition of Aidite and Aoxin. Q&M targets 60 and 15 outlets in Singapore and Malaysia by FY15. Q&M is trading at 47x annualized 1Q13 P/E.