Q&M

Q&M: Maybank-KE maintains Buy with TP $0.55, following the recent emergence of Private Equity (PE) Fund, Heritas Helios Investments (HHI) as a substantial shareholder. The house highlights that this is the first investment by a major PE fund in Q&M and the fact that HHI is willing to pay full market price, highlights the confidence it has in Q&M. Going forward, Maybank-KE expects Q&M’s earnings to be driven by: 1) Organic growth in both Singapore and Malaysia, and 2) A major M&A-led push into the high growth China dental market. Furthermore, the potential for a highly-valued listing of Q&M’s businesses in China within the next two years would be a major positive. The house TP of $0.55 is based on 39x FY14E proforma earnings, after incorporating contributions from the acquisitions of Aoxin Stomatology Group and Qinghuangdao Aidite.