Analyst Paul Chew of Phillip Securities maintained a Buy rating on Q & M Dental Group (Singapore) Limited (QMBN – Research Report), boosting the price target to S$0.40.
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Paul Chew has given his Buy rating due to a combination of factors that indicate a positive outlook for Q & M Dental Group. The company’s financial performance in FY24 exceeded expectations, with adjusted PATMI rising by 20% year-over-year, driven by improved profitability in EM2AI and Aoxin, as well as reduced operating expenses. Additionally, the company announced a 32% increase in the second interim dividend and a 50 million share buyback, signaling confidence in its financial health.
Despite a slight decline in 2H24 revenue due to the closure of the Acumen lab and slower core dental revenue, the company is reorganizing for future growth. The relocation of older clinics and the closure of less efficient ones in Malaysia are expected to enhance operational efficiency. The turnaround in EM2AI and Aoxin, along with potential growth from acquisitions and increased adoption of EM2AI software, further support the Buy recommendation. The target price has been raised to S$0.40, reflecting these positive developments and aligning with industry valuations.
QMBN’s price has also changed slightly for the past six months – from EUR0.192 to EUR0.202, which is a 5.21% increase.