Company Update: 20 March 2026
Re-fuelled for the next leg
- Well-funded next phase. Q&M completed a S$130mn 3.95% note issuance in Jul 2025. The larger cash balance expands capacity for organic rollout and tuck-in M&A but also raises the hurdle for capital deployment.
Regional Pipelines Are Now More Concrete
Post year-end, management disclosed active M&A progress across Australia, Thailand, Singapore and China. The proposed Australian platform alone would add more than 40 clinics and c.120 dentists, while the broader pipeline suggests FY26 could mark the start of a more visible regional build-out.
FY25 Financial Results
Q&M reported FY25 revenue of S$197.2mn, up 9.2% YoY, with core dental revenue increasing 12.5% to S$190.8mn. Reported PATMI was S$9.3mn, but adjusted PATMI excluding other gains/losses and MTN/PSP related expenses was stable at S$17.0mn. 2H25 was the stronger half as Singapore clinics improved and Aoxin was fully embedded into the perimeter.
Valuation & Action
We reiterate OUTPERFORM and raise 12M TP to S$0.65. We keep terminal growth at 2.0% but raise WACC to 8.0% from 6.6% to reflect a more conservative cost of capital framework around deployment risk and terminal value sensitivity.
Risks
Weaker deployment returns, softer Singapore productivity, integration risk in China, and a longer financing-cost drag.
