QnM Dental posted a very positive financial results ending 1st Qtr 2015.
1. Big jump in profit before tax
The Group’s 1Q15 profit before tax rose by 173% to $4.5 million from $1.6 million in 1Q14.
173%!! The increase was mainly due to contributions from acquisitions of their China investments.
2. Current Holdings
They have 60 dental clinics, 1 mobile clinic, 3 medical outlets, and 1 aesthetic clinic in Singapore.
In Malaysia, 3 dental hospitals.
In China, 4 dental outlets.
My take is that dental healthcare is a consistent sustainable business to be in, as many companies in Singapore provides dental benefits to their employees. In addition, when one ages, it becomes a need to see the dentist more often.. Just look at my parents, at the age of 60+, they have spent thousands on dental care!
3. Ambitious expansion plans
Now this is the exciting part. QnM has requested for a trading halt earlier this week and yesterday, they have announced their proposition to acquire 8 dental clinics located island wide.
Their profit target amounts to approx. $16.10 million.
Key dentists to be in charge to sign long term service agreements.
Apart from this, they have plans to expand into private dental healthcare in the PRC, Malaysia and through other acquisitions.
Conclusion:
Although I do have a little concern on over aggressiveness of expansion plans, at this moment I think QnM is promising.
Vested at $0.81 today when market open. :D
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