Broker: OCBC Group Research
Date of Report: 5 June 2026
Excerpt from OCBC Group Research report.
Report Summary
- Stock: Q&M Dental Group
- Ticker: QNM SP EQUITY
- Action: BUY
- Target Price / Fair Value: SGD 0.76
- Last Close (as of report): SGD 0.595
Q&M Dental Group is the largest private dental chain in Singapore, operating over 110 clinics and expanding into Malaysia, China, Australia, and Thailand through strategic M&A. OCBC initiates coverage with a BUY rating and a fair value of SGD0.76, indicating approximately 28% upside from the last close.
The investment thesis is centered on Q&M’s scalable clinic platform, strong cash position post-SGD130m note issuance, and aggressive regional M&A pipeline (notably in Australia and Thailand). Technology is a differentiator, with wholly-owned EM2AI providing AI-powered dental diagnostics and SaaS-like recurring revenue across 1,100+ clinics in five countries.
Key financials forecast group revenue to rise from SGD197.2m in FY25 to SGD376.8m by FY30, while PATMI is expected to triple as new acquisitions scale and China operations (Aoxin Q&M) recover. Leverage will rise significantly post-acquisitions, potentially requiring equity raising.
Main risks include execution and integration challenges from simultaneous acquisitions, elevated leverage, potential dilution, regulatory risks in China, and currency volatility from expanding multinational operations.
Actionable insight for investors: OCBC recommends BUY Q&M Dental Group with a target price of SGD0.76, driven by strong earnings growth potential, aggressive regional expansion, and monetisation of its dental AI platform.
above is an excerpt from a report by OCBC Group Research. Clients of OCBC Group Research can be the first to access the full report from the OCBC Group Research website : https://www.ocbc.com/group/gateway/institute/research
