Broker Name: KGI Securities (Singapore) Pte. Ltd.
Date of Report: March 20, 2026
Excerpt from KGI Securities report.
- Q&M Dental Group completed a S\$130mn note issuance in July 2025, strengthening its cash position and enabling more aggressive organic and M&A expansion, especially across Australia, Thailand, Singapore, and China.
- Reported FY25 profit fell due to accounting and financing charges, but core operations remained stable. The group is transitioning from a Singapore-centric business to a regional platform, with a major potential acquisition in Australia and ambitious growth targets for clinic numbers, supported by a healthy cash flow and a more flexible capital structure.
Report Summary
- Q&M Dental Group is well-funded following a substantial note issuance, positioning it for accelerated growth and regional expansion.
- While reported earnings were affected by one-off accounting items, core business performance was stable and cash generation remained strong.
- Management is actively pursuing M&A in Australia, Thailand, Singapore, and China, with the Australian platform potentially adding over 40 clinics and 120 dentists.
- Singapore remains the earnings anchor, but the group aims to scale its network significantly, targeting 400 clinics in Australia and 300 in Singapore over five years.
- FY25 is seen as a transitional year, setting the stage for FY26 to test the deployment of new capital and platform returns.
- Valuation is adjusted with a higher WACC to reflect increased deployment and execution risks, but the business maintains a resilient and cash generative profile.
Above is an excerpt from a report by KGI Securities. Clients of KGI Securities can be the first to access the full report from the KGI Securities website: https://www.kgigroup.com
