Q&M: Positive acquisition in China (Buy, TP $1.05)
-Acquiring effective stake of 33% in a Chinese business that provide custom-made dental prostheses for $13.75m (13.3x FY17 P/E), to be paid in cash
-3rd largest deal in China, with 16 labs across 15 cities in China
-3 individual vendors signed 12-year service agreement
-12-year profit guarantee, and contribution to Q&M is 6%/5% of FY16E/17E earnings
-Maybank KE expects deal to complete by FY17
-Maintain Buy with TP of $1.05.
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