Q & M Dental

[Freenasi]

Have anyone been to Q&M? I was told that their charges are more expensive than average dentists.

[AlphaQuant]

Have anyone been to Q&M? I was told that their charges are more expensive than average dentists.

I frequent Q&M.

It's quite true that their services are more expensive, esp after they start charging a sterilisation fee of $10 for each visit. However i still use their service as the clinic is close to my house and the cost of travelling further to a cheaper dentist+parking+time spent probably neutralises everything in my case.

I was studying whether Q&M will be a good investment but concluded otherwise - esp seeing its acquisition-led approach to growth overseas. As far as i know, a typical acquisition involves buying over a clinic and then tying its owners-cum-dentists for a number of years. However as soon as the tie-up period is over, these people will typically setup a rival clinic elsewhere.

Dentistry, it seems, while being profitable, is also rather priced much like a commodity.

[Louhan]

Q&M has been halted since yesterday. Looks like something good is brewing?

[pianist]

This one makes m&a announcement every now and then. So im not surprised the halt may relate to this

[greengiraffe]

Maybank KE maintain BUY noted target price @ 39x PER (not value play for me):

Not Vested
GG

Healthcare fund takes 10% stake
 Heritas Helios Investments’s decision to take a 10% stake in Q&M at market price underscores its confidence.
 Vendor share sale, mainly from Quan Min Holdings. With sale, moratorium and service agreements extended.
 Ample M&A-driven upside; China business IPO a major catalyst. Maintain BUY with an unchanged TP of SGD0.55.
What’s New
Q&M has attracted the attention of a long-term healthcare investor, Heritas Helios Investments (HHI). HHI will end up with a 10% equity stake, paying SGD0.48 per Q&M share. The stake will come from existing shareholders Quan Min Holdings, Dr Kelvin Koh and Dr Felicia Koh. HHI has also been granted a two-year call option to buy additional 63m new Q&M shares at a minimum exercise price of SGD0.48. As a key condition of this transaction, key shareholders have agreed to extend their moratorium and service agreements by three years to Jan 2021. HHI is the healthcare private equity (PE) arm of IMC Group, a diversified group with interest in shipping, logistics, healthcare, oil & gas and real estate with strong presence in China, Singapore and Malaysia.
What’s Our View
This is the first investment by a major PE fund in Q&M. The fact that HHI is willing to pay full market price, achieved prior to last Thursday’s trading halt highlights the confidence it has in Q&M.
Going forward, we expect earnings to be driven by: 1) organic growth in both Singapore and Malaysia, and 2) a major M&A-led push into the high growth China dental market. The potential for a highly-valued listing of its businesses in China within the next two years would be a major positive. This transaction reinforces our optimism on Q&M. We reiterate our BUY call with TP of SGD0.55, based on 39x FY14E earnings, after incorporating proforma contributions from the acquisitions of Aoxin Stomatology Group and Qinhuangdao Aidite.

[muns]

Does anyone know if all of Q&M dentists/specialists are reflected on their payroll or do they function like IHH where dentists/specialists "rent" their premises together with only the supporting medical staff reflected for IHH's SG operations?
________________________________________________
Finding the Value in a Speculative World
http://www.valueinvestasia.com

[madagnet]

Near 10% jump in price today with no new announcements. Anybody has any insights?

[GFG]

Does anyone know if all of Q&M dentists/specialists are reflected on their payroll or do they function like IHH where dentists/specialists "rent" their premises together with only the supporting medical staff reflected for IHH's SG operations?
________________________________________________
Finding the Value in a Speculative World
http://www.valueinvestasia.com

nope, the dentists are not on payroll (no contribution to their CPF, they are not employees)
They get remunerated based on commission basis.
That's the case for most of the dentists

[pianist]

What yr reason for asking.g this question.
They are on a payroll

[Musicwhiz]

It has been reported that Sakae Holdings (under Douglas Foo) is now doing corporate advisory for Q&M Dental, and is marketing the Company to European and American investors. Interesting that a sushi company is venturing into corporate advisory which is more of a finance function, but Douglas was trained in finance so I guess it sort of makes sense.

Q&M has a PER of around 30+, so it's hard to make a case for it being attractive unless the growth prospects are really gargantuan....(and I am not saying that sarcastically!).