Q&M Dental Group 4Q21 Preview - Peek At New Baseline
- We believe Q&M Dental Group (SGX:QC7)'s 4Q21F profit was helped by seasonally stronger dental core business momentum, offset by normalisation of COVID-19 testing contribution.
- Re-rating catalysts: increased scope and commercialisation of services from Acumen Diagnostics.
- Downside risk: reduction in COVID-19 testing intensity.
- Reiterate ADD call for Q&M Dental with a lower target price of S$0.785 as we roll over our P/E valuation to peg to 22x FY23F EPS of S$0.0358.
- Q&M Dental's share price is currently trading at an attractive valuation of 15.2x forward P/E, more than 1 standard deviation below its 5-year historical average of 27.2x.
Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.
TAY Wee Kuang CGS-CIMB Research | Kenneth TAN CGS-CIMB Research | https://www.cgs-cimb.com 2022-02-10 2022-02-10
Read also CGS-CIMB's most recent report:
2022-11-14 Q&M Dental Group - Dental Core Revenue Growth Commendable.
Previous report by CGS-CIMB:
2022-10-12 Q&M Dental Group - Tender Win Alleviates Short-Term Pressure.