Q&M

Q&M: Counter at its all-time high at $0.545 today. Fundamentally, the investment merits of Q&M are its resilient business model, coupled with its strong recurring earnings in Singapore, and aggressive overseas business expansion in China. Q&M’s two recently completed acquisitions of Aoxin and Aidite have catapulted it to the major league of China’s private dental industry. The group now owns three dental hospitals, three dental clinics and the second-largest dental zirconium producer in China. Q&M has three smaller Chinese acquisition targets in the pipeline, as part of its plans to close its gap with China’s leading player, Topchoice, which has 13 dental hospitals. Going forward, management plans to acquire more dental hospitals in China and eventually list Q&M China. Although we highlight that counter's momentum and sentiments may be positive, investors should note that Q&M currently trades at a hefty 53x P/E.