Q & M brushes up for China invasion in 2015

It now owns three dental hospitals in the mainland.

Q&M’s two recently-completed acquisitions of Aoxin and Aidite have catapulted it to the major league of China’s private dental industry.

According to a report by Maybank Kim Eng, the company now owns three dental hospitals, three dental clinics and the second-largest dental zirconium producer in China.

Maybank Kim Eng adds that private healthcare, including dental, has considerable growth prospects in China, from: 1) government encouragement of private-sector involvement as part of healthcare reforms; 2) a low penetration rate; and 3) growing affluence which should lift demand for higher-value services.

In Singapore, growth should be sustained by: 1) the opening of new dental outlets; 2) the potential acquisition of stand-alone dental practices; 3) narrowing medical clinic losses; and 4) government subsidies for private dental treatments. Singapore should still contribute a large chunk of revenue and profits but we expect this to diminish as China’s importance grows.