A pure dental play, Q&M Dental Group (Q&M) has performed remarkably in terms of its share price since its Mainboard debut on 26 November 2009. Appreciating more than 110% over its IPO price of $0.27, the company is hovering at $0.575 as at the time of writing. This translates to a historical PE of approximately 42 times.
 
Compared with other listed peers operating in the multi-disciplinary healthcare space, including Raffles Medical, Singapore Medical Group and Healthway Medical, Q&M commands a relatively steeper valuation. But this is not unjustifiable given the company’s glowing potential and concrete plans for further growth, both locally and abroad.
 
Sprouting Islandwide
 
Garnering a massive customer database of over 350,000, Q&M boasts 37 strategically located dental clinics – undoubtedly the largest private dental healthcare service provider in Singapore.
 
“We offer a full spectrum of dental services and are committed to delivering quality dental healthcare services to the masses,” Dr Ng Chin Siau, CEO and Executive Director of Q&M, exclaimed during an exclusive interview with Shares Investment (Singapore).
 
Indeed, Q&M is one of its kind when it comes to the dental services the company provides. Its qualified and experienced team of more than 100 dentists and oral health therapists offers a myriad of services, such as general dental treatment and specialist services, namely aesthetic dentistry, endodontics, orthodontics, paedodontics, periodotonics, prosthodontics, implantology and oral surgery – a long list of technical jargons for the uninitiated.
 
According to the management, around 70% of the company’s revenue is derived from general dentistry services, while the remaining 30% is contributed by specialised services.
 
To further entrench its leadership position, Q&M is looking to increase the existing number of dental clinics to 60 within a 5-year time frame. “We strongly believe that there is still ample room for growth since 54% of the local population are not visiting the dentists regularly,” Dr Ng remarked.
 
A Major Milestone
 
Just recently, the company upped the ante by opening its largest facility to date, the $3 million Q&M Dental Centre, at the City Square Mall. Occupying a total floor area of approximately 1,071 sqm, the 32-treatment room dental centre is armed with state-of-the-art equipment viz. the Galileo Cone Beam 3D radiography and the CEREC machine, allowing more accurate diagnostic on dental ailments and teeth restoration within a single sitting respectively.
 

Dr Ng: We offer a full spectrum of dental services and are committed to delivering quality dental healthcare services to the masses
 
“Depending on future demand and resources, we do not rule out opening more of such dental centres down the road,” said Dr Ng.
 
With the aim to continue raising the bar for the local dentistry profession, as well as to strengthen our nation’s reputation as a regional dental hub, the Ministry of Health (MOH) is reviewing options to implement an accreditation scheme, which allows private dental practices to apply towards becoming a centre of advanced training for dental professionals.
 
More importantly, the Q&M Dental Centre is among the pioneering batch of private dental establishments applying to become an accredited learning centre under the MOH offering training to dental practitioners.
 
Adding Overseas Wing
 
Leveraging on its proven 12-year track record, Q&M is also eyeing China for its next phase of growth. Having spent 2 years carrying out the initial groundwork, understanding the dental healthcare industry in China, especially the rules and regulations, the company is now ready to foray into the aforesaid country.
 
As highlighted by Dr Ng, Q&M plans to set up wholly-owned or joint venture subsidiaries to engage in the provision of dental healthcare services in China. The company will also consider acquiring existing dental clinic chains. As a matter of fact, Q&M has identified a group of clinics in China as potential partners and has begun preliminary discussions to explore probable collaborations.
 
For 1H09, Q&M raked in net earnings of $1.9 million, a marginal 8.7% jump year-on-year. This was achieved on $14.0 million revenue. Meanwhile, the company has signaled its intention to distribute at least 50% of 2H09 net profit as dividends for FY09.
 

 
With regards to Q&M’s dazzling share price performance thus far, some may argue that the company listed at an opportune time, coinciding with the robust equity rally. Nevertheless, one cannot discount the fact that the company does possess solid fundamentals and promising growth potential, which could propel its share price even further should all expansion initiatives come into fruition.
 

A one-stop centre for all your dental needs
 

Supported by a qualified and experienced team of dental professionals