Broker Name: KGI Securities (Singapore) Pte. Ltd.
Date of Report: March 20, 2026
Excerpt from KGI Securities (Singapore) Pte. Ltd. report.
- Report Summary
- Q&M Dental Group raised S\$130mn in July 2025, providing ample funds for expansion and M&A, though deployment discipline is key. The group’s FY25 profit fell due to accounting noise, but core earnings were stable and cash flow remains healthy.
- Regional expansion is accelerating, with active M&A pipelines in Australia, Thailand, Singapore, and China. The proposed acquisition in Australia could add over 40 clinics and 120 dentists, signaling a shift toward a larger, regionally diversified platform.
- Singapore remains the group’s earnings anchor, with recurring core business and improved clinic productivity. China’s operations are consolidating through Aoxin, offering long-term growth potential.
- Financially, revenue grew 9.2% in FY25, core dental revenue rose 12.5%, and reported PATMI declined due to one-off charges. Adjusted PATMI was stable. The group’s balance sheet is more flexible but requires careful capital deployment to maintain returns.
- KGI reiterates an OUTPERFORM rating and raises the 12-month target price to S\$0.65, but adjusts WACC upwards to 8.0% to reflect higher deployment risk and terminal value sensitivity.
Above is an excerpt from a report by KGI Securities (Singapore) Pte. Ltd. Clients of KGI Securities (Singapore) Pte. Ltd. can be the first to access the full report from the KGI Securities website : https://www.kgi.com.sg
