Q&M Dental

Q&M Dental: Maybank-KE had a non-deal roadshow yesterday with Q&M, including the CEO, CFO and COO, drew active participation from ten institutional fund managers. Management provided more clarity on China growth plans, its capital raising strategy, and its revenue sharing and cost centralisation business model and updated that the due diligence of the proposed acquisitions of the two China entities has been smooth so far and is seeing satisfactory progress along the completion timeline. Management also shared that it is now ready for primetime with bigger deals in the pipeline, having spent the last few years since IPO doing small M&A deals. It believes its proven business model and strategy to align dentists’ interests with its own will work well. Overall, house maintains BUY with TP of $0.41.