Singapore’s Big Winner of the Week: Q&M Dental Group (Singapore) Limited

Shares of Q & M Dental Group (Singapore) Limited (SGX: QC7) had climbed by 4% during the week to end Friday at S$0.745. This is better than the Straits Times Index’s (SGX: ^STI) 1.9% decline over the same time frame, thus making Q & M Dental a big winner in the local share market for the week.

Q & M Dental, which is the largest private dental practice in our shores, recently announced that Shenyang Xin’Ao Hospital Management Co., Ltd (Xin’Ao MC), one of its subsidiaries in China, is looking to acquire a 60% stake in Panjin Jinsai Dental Clinic from Dr. Zhang Chun. The purchase price is pegged at RMB 5.98 million (around S$1.3 million), which will be paid in cash.

In 2014, the dental clinic, which is located in Panjin City of China’s Liaoning Province, had a turnover of approximately RMB 3.7 million. It was not mentioned how much it made in net profit in the same year.

Dr. Zhang will commit himself to a 12-year full time service contract with Xin’Ao MC and Q & M Dental. Dr. Zhang also “guarantees that the profit of the Panjin Jinsai Dental Clinic shall not be less than RMB 12.981 million and that Xin’Ao MC will receive dividends of not less than RMB 7.789 million over a 12-year period commencing from the date of completion.”

Q&M Dental’s latest acquisition is in line with its plan to continue the expansion of its dental business in China and also allows Xin’Ao MC to add a fully operational clinic in the same province.

Meanwhile, Dr Ng Chin Siau, chief executive of Q&M Dental, had won the best chief executive award in the mid-cap sector during the Singapore Corporate Awards held on Wednesday night. The best chief executive award in the large-cap sector went to Dr Wolfgang Baier of Singapore Post Limited (SGX: S08) and for the small-cap sector, Mr Kuah Boon Wee of MTQ Corporation Limited (SGX: M05) got the glory.

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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.