Q&M

Q&M: Acquires 70% stake in Malaysian dental supply and equipment distribution company AR Dental Supplies (ARD) for RM8.4m (S$3.4m). The acquisition will quicken the group's intentions to expand its presence in the overseas markets. ARD has operations in Selangor, Johor, Penang, Sabah, Sarawak and Terengganu, which Q&M intends to integrate with its existing operations in Klang Valley and Johor. The group intends to mimic Q&M's Singapore distribution centre model in Malaysia with the acquisition of ARD, whereby ARD's exclusive distributorship for dental materials and equipment would provide economies of scale to Q&M's clinic operations. In Singapore, Q&M currently has 52 dental clinics, 4 dental centres and 1 mobile dental clinic, as well as 2 dental supplies and equipment distribution companies. Overseas, the group has operations in Beijing, Shanghai and Nanjing in China, and Klang Valley and Johor in Malaysia. At the last closing price of $0.29, Q&M trades at a 31.9x trailing P/E and a 6x P/B.