Q&M Dental Q2 net profit surges on higher revenue from outlets, Covid-19 testing
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DENTAL healthcare group Q&M QC7 on Friday posted a 51 per cent rise in net profit for the fiscal second quarter from a year ago, thanks to higher revenue from its existing outlets in Singapore compared with the year-ago period, which was impacted by "circuit-breaker" closures.
Net profit for the three months ended June 30, 2021 stood at S$11.4 million, compared with a net profit of S$7.6 million posted in the same period a year ago.
The results translate to earnings per share of 1.06 Singapore cents, against earnings per share of 0.87 Singapore cent from the year-ago period.
Revenue doubled to S$50.8 million on the back of the opening of seven more outlets in Singapore, as well as four new outlets in Malaysia compared with last year.
As a participant in the nationwide Covid-19 testing effort, Q&M said it also saw a 191 per cent surge in revenue from its medical laboratory and dental equipment and supplies segment of its business, posting revenue of S$12.7 million in Q2 2021 versus S$4.4 million in Q2 2020. Q&M obtained a licence to open its Covid-19 medical laboratory in September 2020.
On a half-yearly basis, Q&M posted a net profit of S$15 million in H1 2021, up from the S$3 million in net profit it posted from the year-ago period. Total revenue was also up 73 per cent to S$94.6 million in H1 2021, compared with S$54.7 million in H1 2020.
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The board has proposed a second interim dividend of one Singapore cent per share, to be paid out on Sept 3, 2021.
In view of its strong financial performance, Q&M said it is proposing a bonus issue to increase the issued share capital base of the company, reflecting the growth and expansion of its business and to reward and recognise shareholders for their loyalty and continuing support. These shares, however, will not be entitled to the second interim dividend, the company said.
On the dental group's earnings, Q&M CEO Ng Chin Siau attributed its success to its dentists and staff, whom he describes as "our greatest strength". He also shared the company's plans to open 30 new clinics every year in Singapore and Malaysia.
"The Group is optimistic that our core business would continue to see growth as a result of our expansion efforts, linked to the gradual release of social restrictions, and the subsequent controlled reopening of Singapore," he said.
"As Singapore shifts to managing Covid-19 as endemic, we see new opportunities to support the government beyond PCR testing, including swabbing and vaccination services."
Shares of Q&M climbed 5.6 per cent or 4.5 Singapore cents to close at 85.5 cents on Friday.
READ MORE:
- Brokers' take: DBS expects Q&M to gain from Covid-19 turning endemic; raises target price to S$1
- Q&M eyes AI and tech investments for future growth
- Brokers' take: UOBKH initiates on Q&M with 'buy' on growth potential in dental, Covid-19 testing businesses
- Analysts raise targets on healthcare plays Raffles Med, Q&M as Covid-19 testing, vaccinations ramp up
- Q&M Q1 profit rises to S$9.4m on one-off divestment gain
- Q&M Dental ends JV plan to make surgical masks
- Q&M Dental gains 2.2% after news of tender win for Covid-19 testing
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