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Singapore’s Big Winner for the Week

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Q & M Dental Group (Singapore) Limited (SGX: QC7) ended Thursday’s trading session at S$0.90, representing a 6% gain since last Friday. That’s a strong weekly gain, especially considering that the Straits Times Index (SGX: ^STI) has moved barely 0.2% higher to 3,295 points.

The dental outfit was established in 1996 by Dr Ng Chin Siau, who is also the current Group Chief Executive Officer. Today, Q&M Dental Group is the largest private dental healthcare group based in Singapore. The company services more than 600,000 patients island-wide through more than 55 dental clinics and centres.

The firm’s not resting on its laurels though, and is currently expanding in China. To-date, it has invested in several dental healthcare groups in the country which collectively run nine dental clinics, one dental centre, and a mobile dental clinic.

Q&M announced its second quarter earnings on Monday and saw revenue grow 28% year-on-year to $20.3 million due to a broad-based improvement in all its businesses. Consequently, net profit increased from S$888,000 to S$1.2 million, a rise of 33%.

An interim dividend of 0.41 Singapore cents per ordinary share will be given out to shareholders. This is a huge slump from 0.64 cents per share given out last year.

Dr Ng commented on the performance of Q&M and shared his thoughts going forward. He commented:

“The current financial results reflects our strength in Singapore and validates the Group’s strategy of continual local expansion together with expansion in China. With the recently announced completion of our acquisition of the Aoxin Stomatology Group in Shenyang, China on 7 July 2014 and Foo & Associates, a high-end dental practice in Singapore, on 16 July 2014, we remain optimistic about the Group’s performance moving forward.”

The company is valued at around 42 times its historical earnings.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.