Q&M

Q&M: (S$0.715) 1Q16 meets on acquisition-led growth; offers best China exposure
- 1Q16 net profit of $3.7m (+28%) that met estimates on acquisition-led growth in Singapore and China.
- Revenue rose 19% to $34.4m as higher contributions from its dental and medical clinics (+28%)
- Recent completion of the acquisitions in China indicates that the group is gaining traction in the country with more acquisition on the cards
- While MKE likes both Q&M and Raffles Medical (Buy, TP: $1.73), it is recommending that investors take profit in the latter after its 15% ytd performance and go long on Q&M (+2% ytd).