- We just attended Q&M Dental’s post-results briefing for an update. As a recap, Q&M Dental’s 1H23 net profit of S$5.3m (-46% y-o-y) missed our and street expectations. While its core healthcare business remains resilient, this was offset by weakening MYR for its Malaysian operations, higher finance costs and less contribution from medical laboratory.
- - Read this at SGinvestors.io -
- We cut our FY23- 25E EPS forecast for Q&M Dental by 25-34% on slower dental topline growth, exacerbated by negative operating leverage. Retain HOLD rating with a lower target price of S$0.31 for Q&M Dental, based on 24x FY24E P/E (5-year average).
Aims to improve efficiency to cut costs & wastage
- - Read this at SGinvestors.io -
- Meanwhile, medical laboratory turnover fell 46.6% to S$3.8m due to less PCR testing post re-opening.
- To mitigate rising staff/rental costs, Q&M Dental plans to use central purchasing to cut wastage, and ensure more just-in-time ordering so that it can also reduce storage cost to improve efficiency.
Investing in data-centric AI treatments
- Read more at SGinvestors.io.
Above is the excerpt from report by Maybank Research.
Clients of Maybank Securities may be the first to access the full report in PDF @ https://maybanktrade.com.sg/.
Eric Ong Maybank Research | https://www.maybank-ke.com.sg/ 2023-08-23
Previous report by Maybank:
2023-03-08 Q&M Dental Group - 4Q22 Below Expectation; Awaiting Recovery.
Price targets by 2 other brokers at Q&M Dental Target Prices.
Listing of research reports at Q&M Dental Analyst Reports.
Relevant links:
Q&M Dental Share Price History,
Q&M Dental Announcements,
Q&M Dental Dividends & Corporate Actions,
Q&M Dental News Articles
