- Q&M Dental (SGX:QC7) can double its earnings upon completion of the acquisition of more than 70 dental clinics in Australia, Singapore and Thailand. The estimated value of the acquisitions is S$272mil, backed by five to eight-year profit guarantees totalling S$200mil.
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- We estimate the acquisition could boost FY26e EPS by 80% to 3.5 cents. Our fair value post acquisition (excluding amortisation of intangibles) is S$0.95. However, we apply a 50% discount on the earnings accretion from the pending completion of the acquisitions.
Key Highlights
Three proposed acquisitions.
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- We have assumed the valuations, proportions, and pricing of shares to be issued for the Singapore and Thailand acquisition will be similar to those in Australia. In the Australia acquisition, the Q&M Dental shares issued to the vendor are priced at S$0.70. Our assumed net profit contribution does not include an amortisation of intangibles from the acquisition.
Operational benefits of the acquisition.
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