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Results First Take: Strong core dental performance in 3Q21

  • 3Q21 revenue recorded y-o-y increase of 48% to S$57.7m from S$39.1m in 3Q20
  • 3Q21 PBT increased a solid 179% y-o-y to S$16.7m from S$6.0m in 3Q20 
  • Net profit after tax attributable to shareholders rose by 69% to S$9.5m in 3Q21 from S$5.6m in 3Q20 
  • Third quarterly dividend of 1 cent per share, following first and second quarterly dividend of 1 cent per share each 

Results Summary

 3Q203Q21y-o-y change
Revenue (S$m)39.157.7+48%
EBITDA (S$m)  9.721.4+121%
PATMI (S$m)5.69.5+69%
Earnings per share (cents)0.601.01 
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9M21 results still slightly below expectations

  • Revenue increased 48% to S$57.7m in 3Q21 from S$39.1m in 3Q20
  • PBT increased a solid 179% y-o-y to S$16.7m in 3Q21 from S$6.0m in 3Q20 
  • Net profit after tax attributable to shareholders rose by 69% to S$9.5m in 3Q21 from S$5.6m in 3Q20
    • 9M21 net profit after tax attributable to shareholders at S$27.3m vs full year forecast of S$40.3m – slightly below expectations
  • Third quarterly dividend of 1 cent per share, following first and second quarterly dividend of 1 cent per share each 

Core dental business performance came in strong

  • No of dental clinics in Singapore: 90 (as at 30 Sep 2021) vs 81 (as at 30 Sep 2020)
    • Management guidance: another 9 new clinics by end of year 
    • We think it could still be on track for our 15 new clinics a year projection if Q&M ramps up in 4Q21 
  • No. of dental clinics in Malaysia: 38 (as at 30 Sep 2021) vs 33 (as at 30 Sep 2020)
    • Management guidance: another 2 new clinics by end of year
    • This has already met our 5 new clinics a year projection, we prefer to remain conservative despite the improving COVID-19 situation in Malaysia
  • 9M21 revenue for this segment stands at S$116.6m, in line with our full year S$140.6m forecast
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Acumen Diagnostics business below projections due to weak 1H21 but 3Q21 has since ramped up

  • 3Q21 revenue reported for this segment was a solid S$18.4m, higher than the entire 1H21 revenue of S$17.3m (1Q21: S$4.6m; 2Q21: S$12.7m)
    • However, it is set to miss our top line projection due to weak 1H21   
  • Q&M is diversifying with new pipeline of new PCR tests for infectious diseases, sepsis and cancer on top of COVID-19 testing

More details to come after analyst briefing next Tues (16 Nov).

We maintain BUY, with an unrevised target price of S$0.84.