Q&M Dental: +5.9%, in top volume. After CIMB initiated coverage on Q&M Dental Group yesterday. Note that Dentistry remains one of the most lucrative revenue intensity in healthcare business and Dental expenditure is necessary, and charges are not the lowest of all healthcare consumption….
Add that premium valuations in this sector common and over the past six months, two healthcare groups (Parkway and Thomson Medical) have been taken over at high premiums. Like Q&M, they have strong brand equities, solid patient volumes, revenue & cash flows, and overseas ventures….
Highlight that Q&M is under-researched and undervalued, reflecting market’s lack of appreciation for its strong dentistry franchise and overseas expansion plans. China network chain could be separately listed, when the group achieves a sizeable network in 2-3 years’ time. This could unlock asset value for shareholders…..
Its Chinese ventures also make Q&M an attractive partner for strategic investors. Reiterate Buy recommendation and TP of $0.83
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