24-12-2012, 12:55 AM
24-12-2012, 09:56 AM
My two dollars are on Q&M taking over SG Medical's Dental Studio at the Paragon Mall on Orchard Road. We will see.
Q&M hasn't increased profits at the same rate as they have increased revenues (i.e. margins decreasing) and their gimmick of a share split, which has completely failed to deliver on its objective (share price down, volumes down since the split) has done nothing for the credibility of management. However, Q&M is still picking up dental outlets in Singapore, Malaysia and the PRC.
In the unlikely event I am correct with my two dollar bet (it rarely happens that I am correct with such things), such a transaction would serve to lessen the ridicolously disparate fragmentation and diversity of SG Medical. An SG Medical acquisition of Q&M would be too much to hope for!!
Vested in Q&M Dental, not in SG Medical
Q&M hasn't increased profits at the same rate as they have increased revenues (i.e. margins decreasing) and their gimmick of a share split, which has completely failed to deliver on its objective (share price down, volumes down since the split) has done nothing for the credibility of management. However, Q&M is still picking up dental outlets in Singapore, Malaysia and the PRC.
In the unlikely event I am correct with my two dollar bet (it rarely happens that I am correct with such things), such a transaction would serve to lessen the ridicolously disparate fragmentation and diversity of SG Medical. An SG Medical acquisition of Q&M would be too much to hope for!!
Vested in Q&M Dental, not in SG Medical
(24-12-2012, 12:55 AM)Nick Wrote: [ -> ]Both Q&M and Singapore Medical Group have issued trading halt. Could the pending announcement be related ?
(Not Vested)
26-12-2012, 09:51 AM
Something is "going on" this morning with Q&M Dental ............. bids are now coming in at the S$ 0.40 level, some ~ 31% higher than the last, pre-trading-halt share price of S$ 0.305.
Nothing of note vis-a-vis any highish bids for SG Medical.
Looks like my hunch was likely wrong, as usual. But it looks to me like "more than a coincidince" that both SG Medical and Q&M Dental have had such a prolonged trading halt and initiated their respective halts within hours of each other.
Postscript at close of trading on 26th December 2012: bids were a tad lower, i.e. at the S$ 0.39 level, still some ~ 28% up on the price of the last done deal.
Vested in Q&M
Nothing of note vis-a-vis any highish bids for SG Medical.
Looks like my hunch was likely wrong, as usual. But it looks to me like "more than a coincidince" that both SG Medical and Q&M Dental have had such a prolonged trading halt and initiated their respective halts within hours of each other.
Postscript at close of trading on 26th December 2012: bids were a tad lower, i.e. at the S$ 0.39 level, still some ~ 28% up on the price of the last done deal.
Vested in Q&M
(24-12-2012, 09:56 AM)RBM Wrote: [ -> ]My two dollars are on Q&M taking over SG Medical's Dental Studio at the Paragon Mall on Orchard Road. We will see.
Q&M hasn't increased profits at the same rate as they have increased revenues (i.e. margins decreasing) and their gimmick of a share split, which has completely failed to deliver on its objective (share price down, volumes down since the split) has done nothing for the credibility of management. However, Q&M is still picking up dental outlets in Singapore, Malaysia and the PRC.
In the unlikely event I am correct with my two dollar bet (it rarely happens that I am correct with such things), such a transaction would serve to lessen the ridicolously disparate fragmentation and diversity of SG Medical. An SG Medical acquisition of Q&M would be too much to hope for!!
Vested in Q&M Dental, not in SG Medical
(24-12-2012, 12:55 AM)Nick Wrote: [ -> ]Both Q&M and Singapore Medical Group have issued trading halt. Could the pending announcement be related ?
(Not Vested)
27-12-2012, 11:10 AM
From a Q&M shareholder perspective, I believe this morning's series of announcements is the worst possible outcome, i.e. Q&M's intended acquisition of SG Medical. Q&M is proposing to acquire this disparate, fragmented and unfocused medical company with a doubtfull outlook. Q&M's key attraction hereto has been its focus exclusively on dentistry - that will no longer be the case following this acquisition.
http://info.sgx.com/webcoranncatth.nsf/V...10008DCE3/$file/Press_Release_27122012.pdf?openelement
http://info.sgx.com/webcoranncatth.nsf/V...1000875D7/$file/Announcement_Placement_27122012.pdf?openelement
http://info.sgx.com/webcoranncatth.nsf/V...1000A9572/$file/PreConditional_Announcement_27122012.pdf?openelement
http://info.sgx.com/webcoranncatth.nsf/V...100075104/$file/Announcement_Acquisition_27122012.pdf?openelement
Vested in Q&M Dental, for now.
http://info.sgx.com/webcoranncatth.nsf/V...10008DCE3/$file/Press_Release_27122012.pdf?openelement
http://info.sgx.com/webcoranncatth.nsf/V...1000875D7/$file/Announcement_Placement_27122012.pdf?openelement
http://info.sgx.com/webcoranncatth.nsf/V...1000A9572/$file/PreConditional_Announcement_27122012.pdf?openelement
http://info.sgx.com/webcoranncatth.nsf/V...100075104/$file/Announcement_Acquisition_27122012.pdf?openelement
Vested in Q&M Dental, for now.
27-12-2012, 11:37 AM
Doing share placement to raise fund to purchase SMG seemed equivalent to using their expensive shares to buy SMG
"The proposed deal is expected to create a regional healthcare group that offers comprehensive and holistic medical care from unique specialty centres of excellence"
Similar to healthway, specialty centres don't seemed to be very profitable after all.
"The proposed deal is expected to create a regional healthcare group that offers comprehensive and holistic medical care from unique specialty centres of excellence"
Similar to healthway, specialty centres don't seemed to be very profitable after all.
02-01-2013, 05:26 PM
is it a nice thing to have in this case to "using expensive shares to buy SMG"?
anyway, for q&m to hope for a slice of a china market, i think is quite naive?..because the chinese in general do not care much about oral hygiene.
most of the private dental business there are mainly tapping on tourists money
anyway, for q&m to hope for a slice of a china market, i think is quite naive?..because the chinese in general do not care much about oral hygiene.
most of the private dental business there are mainly tapping on tourists money
30-07-2013, 03:05 PM
For those vested and interested...
(not vested)
Q&M acquires 60% stake in China’s Aoxin Stomatology Group for about $21.6 mil
Q&M Dental Group announced that it has agreed to acquire a 60% stake in the Aoxin Stomatology Group for about $21.6 million, through its unit Q&M Dental Holdings (China).
The acquisition marks a major step in Q&M’s expansion plans in China and provides a ready-made stage for Q&M Dental Group to announce its presence in North-Eastern China in the Liaoning, Jilin and Heilongjiang provinces, said Q chief executive Dr Ng Chin Siau.
Under the agreement, Q&M China will receive a profit guarantee from Dr Yongxin Shao, by way of dividends amounting to about $26.6 million, over a period of 12 years.
http://www.theedgesingapore.com/the-dail...6-mil.html
(not vested)
Q&M acquires 60% stake in China’s Aoxin Stomatology Group for about $21.6 mil
Q&M Dental Group announced that it has agreed to acquire a 60% stake in the Aoxin Stomatology Group for about $21.6 million, through its unit Q&M Dental Holdings (China).
The acquisition marks a major step in Q&M’s expansion plans in China and provides a ready-made stage for Q&M Dental Group to announce its presence in North-Eastern China in the Liaoning, Jilin and Heilongjiang provinces, said Q chief executive Dr Ng Chin Siau.
Under the agreement, Q&M China will receive a profit guarantee from Dr Yongxin Shao, by way of dividends amounting to about $26.6 million, over a period of 12 years.
http://www.theedgesingapore.com/the-dail...6-mil.html
24-12-2013, 11:54 PM
good company but extremely overpriced!
Will relook once the prices come down
Will relook once the prices come down
25-12-2013, 08:19 AM
(24-12-2013, 11:54 PM)wahkao Wrote: [ -> ]good company but extremely overpriced!
Will relook once the prices come down
on what metrics did you say its overprice.
26-12-2013, 11:34 AM
(25-12-2013, 08:19 AM)Drizzt Wrote: [ -> ](24-12-2013, 11:54 PM)wahkao Wrote: [ -> ]good company but extremely overpriced!
Will relook once the prices come down
on what metrics did you say its overprice.
Perhaps it's due to the:
- EV/LTM Sales 2.88x
- EV/LTM EBITDA 24.1x
- P/LTM E of 37.2x
- P/B of 4.70x
Based on Maybank Kim Eng's estimates,
- EV/FY13 Sales 2.87x
- EV/FY13 EBITDA 20.9x
- P/FY13 E 33.8x
- P/B 4.59x
However it may not seem high if you compare to historical means (since IPO in Nov 09):
- P/LTM E of 38.4x
- P/B of 6.8x
It may also be trading in line with peers if you select peers such as IHH and Raffles Medical (SG-listed Healthcare peers).
This is an interesting company with:
- network of clinics reaching critical mass in the mature Singapore market
- acquisition of China dental clinics with potential for a spin-off listing leveraging a reputable Singapore brand
Margin of safety...hard to determine unless you derive the intrinsic valuation using DCF; Maybank Kim Eng has projected very aggressive top and bottom line growth of around 20% YoY till 2017.
*Not Vested*