Brokers' take

Q&M Dental Group > Reduce CGS-CIMB, Nov 22 Nov 23 close: S$0.505 Target price: S$0.47

Q&M's Q3 topline of S$29.5 million (flat y-o-y and q-o-q) was slightly below expectations, which management attributed to a slowdown in local dental demand, due to tighter requirements for CHAS (community health assist scheme) subsidies. Core PATMI (profit after tax and minority interests) of S$3.4 million (-2.3 per cent y-o-y) was in line with our estimate, helped by lower tax rates and financing costs.

Q3 saw associates' contribution of S$0.5 million, of which about 75 per cent came from Aidite (48 per cent-owned), while startup losses from Aoxin's (42.6 per cent stake) new dental centres drove the 26.5 per cent y-o-y decline in associates' earnings.