Q&M Dental

Q&M Dental:

https://www.youtube.com/watch?v=EPiYEiG4-dw

MaybankTV interviews John Cheong, Investment Analyst at Maybank-KE, who shares his view on Q&M Dental

Overview:
1) Further acquisitions to come from Singapore and China. The group still has $31m cash remaining from the $60 MTN raised this year.

2) Q&M’s market share is still low in Singapore. Even after completing its four proposed acquisitions, the group’s market share by number of dentists is estimated to only climb to 13% from 10%, providing ample room for growth.


3) Downside risks include the digestion of the two major acquisitions in China made in 2014, although this could be mitigated by profit guarantees and long-term service agreements. Moreover the interests of the Chinese parties are aligned with Q&M, given that they remain as substantial shareholders in the company and are working towards the a potential listing of Q&M’s Chinese assets.

4) Potential TPs:
- Assuming Q&M acquire $31m worth of assets, TP will be at $1.11
- Blue sky scenarios where Q&M acquires $142m worth of assets, TP will be $1.43.

The video can be accessed via the following link below:
https://www.youtube.com/watch?v=EPiYEiG4-dw