Q & M Dental

Q & M Dental: Maybank-KE held a non-deal roadshow, highlighting that there is keen investor interest in its business and China growth strategy. House maintains BUY rating but lowers TP to $0.51 (from $0.54). Management reaffirmed that its completed acquisitions will boost profits significantly from 2H14E. Maybank-KE currently forecasts earnings of $6.6m (+27% YoY) for FY14e and $7.6m (+16%) for FY15e, which do not include contributions from acquisitions, would rise to $7.9m (+53%) and $11m (+39%). House believes Q&M is pursuing more acquisitions in China. It can cherry-pick the best targets, as its acquisition of Aoxin has raised its profile in China’s dental industry.