Twin Growth Engines From Dental And COVID-19 Testing Businesses
Q&M is on track for record core earnings in 2021 (+68% yoy) as its dental business delivers robust growth from aggressive opening of new dental outlets and strong local demand. Also, Q&M has a new growth engine from the COVID-19 testing and test kit business. Currently, the stock is trading at 1SD below its long-term mean of 16x 2022F PE and offers a dividend yield of 5.2%. We initiate coverage with a BUY and a target price of S$0.94 pegged to 20x 2022F PE (mean PE).