More AI business opportunities<\/strong>.<\/strong><\/p>\n\n\n\n The company reported a strong improvement in profitability, with net profit margin (NPM) rising by 18.0% to S$13.1 million in FY24. This was driven by cost-cutting initiatives, including the closure of underperforming clinics and the winding down of its medical laboratory business in September 2024 following the decline of COVID-related operations. Several expense categories declined year-over-year, reflecting the company\u2019s effective streamlining efforts. We expect these efficiency gains to sustain profitability into the next financial year.<\/p>\n\n\n\n Q & M Dental Group reported revenue of S$180.7mn for FY24, a 1.1% decline YoY, compared to S$182.7mn in FY23, mainly due to the cessation of the Group\u2019s medical laboratory business. PATMI rose by 27.1% YoY to S$14.6mn in FY24, compared with S$11.5mn in FY23. EPS rose to 1.55 Singapore cents in FY24, compared to 1.22 Singapore cents in FY23. The Group also announced plans to carry out a share buyback of up to 50mn ordinary shares. For the Group\u2019s business segment, dental business revenue grew marginally to S$173.8mn in FY24, up from S$173.0mn in FY23, supported by higher contributions from its Malaysia operations. On the other hand, revenue from other businesses declined primarily due to the cessation of the Group\u2019s medical laboratory business in September 2024.<\/p>\n\n\n\n We maintain an OUTPERFORM<\/strong> recommendation and keep our TP unchanged at S$0.35<\/strong>, based on a Discounted Cash Flow (DCF) method with a terminal growth rate of 2% and a WACC of 9.0%. Q & M Dental Group\u2019s resilient business, along with its investment into dental AI & technology, positions the company well for future growth and to capture the majority of dental services demand in its local and overseas markets. Efforts to streamline the company\u2019s business operations will further enhance profitability in FY25. Furthermore, the Group is actively seeking potential acquisition or growth opportunities to further expand the group\u2019s market presence inorganically. Our TP of S$0.35 implies a 20.6% upside from its current share price.<\/p>\n\n\n\n The company is exposed to currency translation risk, as it operates its business in several key markets such as Singapore, Malaysia, and China.<\/p>\n\n\n\n China Sunsine Chemical Holdings is a leading specialty rubber chemicals producer selling accelerators, anti-oxidant, vulcanizing agent<\/p>\n","protected":false},"author":16,"featured_media":64613,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_eb_attr":"","_uag_custom_page_level_css":"","footnotes":""},"categories":[14],"tags":[],"class_list":["post-64612","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-company-reports"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n
\n\n\n\nIncreased Profitability Outlook<\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/h2>\n\n\n\n
FY24 Financials Results<\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/h2>\n\n\n\n
Valuation & Action<\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/h2>\n\n\n\n
Risks<\/strong><\/strong><\/strong><\/strong><\/strong><\/h2>\n\n\n\n
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