Broker: CGS International Securities
Date of Report: March 13, 2026
Excerpt from CGS International Securities report.
- Q&M Dental Group is positioned for significant earnings growth if it completes three major M&A deals in Australia, Thailand, and Singapore, potentially lifting FY27F EPS by 126.7%.
- These acquisitions, supported by profit guarantees and service agreements, will expand QNM’s presence in new markets and strengthen its core business, although higher finance costs from recent funding may affect near-term profits.
Report Summary
- Q&M Dental Group plans to acquire large dental clinic groups in Australia, Thailand, and Singapore using a mix of cash and shares, backed by profit guarantees of 5-8 years and service agreements for key personnel.
- While these deals could more than double FY27F earnings per share, the company faces higher finance costs and execution risks; its target price is raised to S\$0.68, reflecting anticipated earnings upside.
- QNM’s market expansion strategy, ongoing AI innovation, and community outreach are seen as positives, but near-term earnings are impacted by increased borrowing costs.
- Consensus remains positive on QNM’s prospects, but risks include possible delays or cancellations of acquisitions, and higher-than-expected valuations for targets.
Above is an excerpt from a report by CGS International Securities. Clients of CGS International Securities can be the first to access the full report from the CGS International Securities website: https://www.cgs-cimb.com/
