Q&M Dental

Smile

Q&M Dental Group was founded in 1996 and listed in SGX on Nov-2009. It is the largest private dental healthcare in Singapore with 90 dental outlets and 350 staff. The group also operate 5 medical clinics and a dental supplies and equipment distribution company.

The group has 37 dental clinics and a dental supplies & equipment distribution company in Malaysia and a dental clinic in China.

In FY21, 94% of business were in Singapore, 5% in Malaysia and 1% in China.

Business are segmented into:

Primary Healthcare
Medical lab, dental equipment & supplies

Financial Performance

Revenue growth first peaked in FY-2016 and declined when:

Aidite, a dental supplies manufacturer was deconsolidated to associates in Dec-2016.
Aoxin Q&M Dental, Liaoning Province China was deconsolidated to associates in Apr-2017.

During these periods, core business operating margin weakened. Associates & Other Income boosted NM above OM until FY-2019.

Acumen Diagnostics was incorporated in Apr-2020 as a 51% J.V. for sale of Covid-19 test kit and laboratory tests.

In Sep-2020, Acumen was granted license by Ministry of Health to conduct clinical lab testing for SARS-Cov-2 PCR testing for Covid-19.

In Jun-2021, Acumen was granted approval by MoH to conduct offsite PCR test located at former Siglap Secondary School until Jun-2023.

Other Developments

Nov18. Dental A.I. diagnosis & treatment planning. Collaboration with International Medical University in Apr-2019.

Dec18. Incorporated Q&M College of Dentistry in Singapore.

Financial - FY2021

Revenue grew 49% to $206M. Gross margin improved to 28.3%. Net profit increased 55% to $30M.

Opinion

Covid-19 related medical services was Q&M major earning driver starting from 2H20.

93% Singapore eligible population are fully vaccinated as of Mar-2022. Infection rate from Covid-19 Omicron has subsided considerably. The country is in the process of fully open air travel and land-sea connection with neighbouring countries.

Demand for local population PCR testing and lab test is likely to decline though foreign visitations may cause some uptick in infection rate.

For Q&M, Covid-19 related services will remain relevant in the medium term but at a less elevated level.

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