Q&M Dental Group eyes more M&As in China

Completed acquisitions will boost profits in 2H14.

Mainboard-listed Q&M Dental Group is looking at more mergers and acquisitions in the Mainland.

According to a report by MAybank Kim Eng, such a move will be positive for the group as its completed acquisitions are already expected to boost profits significantly from 2H14.

“We believe Q&M is pursuing more acquisitions in China. It can cherry-pick the best targets, as itsacquisition of Aoxin has raised its profile in China’s dental industry,” noted the report.

Here’s more from Maybank Kim Eng:
We hosted Q&M to an NDR with 10 clients. Management reaffirmed that its completed acquisitions will boost profits significantly from 2H14E.

Our current forecasts of SGD6.6m (+27% YoY) and SGD7.6m (+16%), which do not include contributions from acquisitions, would rise to SGD7.9m (+53%) in FY14E and SGD11m (+39%) in FY15E. Fully-diluted EPS, including the acquisitions, should grow 8% in FY14E and 39% in FY15E, their first full year of contributions.