Q&M

Q&M Dental: Results relatively comparable to last yr. 1Q rev at $10.6m +22.6%yoy and net profit at $1.0m +27.4%yoy. Growth was organic with 3 new clinics and 1 new dental centre. Co has net cash position of $14.5m coupled with recent $15.0m loan (sizeable considering total assets of $33.9m) from World Bank and will likely seek further expansion in Msia and China…

Contributions from China associates were negative but performance is on track and Shanghai JV (Dan De) is expected to make profit in Apr 2011. SIAS has Increase Exposure with $1.02 and expects China contributions during 2HFY11. With net income of $1.0m and mkt cap of approx $227.1m, annualized P/E is at 75.0x which appears high