4 Key Insights from Q&M Dental Group (Singapore) Limited’s Management

Q&M Dental Group (Singapore) Limited (SGX: QC7) is one of the best performing small caps stocks for the year.

There may be lessons we can learn from this outperformer, in particular, its management team. Recently, Q&M Dental Group’s chief executive Dr Ng Chin Siau was featured in an interview series by bourse operator Singapore Exchange Limited  (SGX: S68). There may be valuable insights we can pick up from the interview.

As a brief background, Q&M Dental Group runs a chain of dental clinics around Singapore and also has an interest in dental clinics in countries like China and Malaysia. The company also owns dental supplies and equipment distribution companies in Singapore and Malaysia. At the end of 2014, it had a patient pool of more than 600,000 island-wide.

Without further ado, here are four key excerpts from the interview.

1. Empowering peopleclick here

2. Paying the right priceclick here

3. The China opportunity

China’s growth outlook is rosy, thanks to demographic trends, including its 1.4 billion population. Awareness of dental health is also less than 10% in the country, compared to 40%-50% in Singapore.

Opportunities to hire qualified staff also abound, with more than 130,000 employable dentists, as compared with only 1,600 in Singapore, he noted.

“China is a very big magnet for us,” added Ng.”

Dr Ng has his eyes set on the opportunity in China. The benefits are two-fold. Firstly, Q&M Dental Group may benefit from rising awareness of dental health in a country with a population of 1.4 billion. Secondly, there is also a wider availability of employable dentists. The combination of the two factors makes the China opportunity attractive for the company.

4. The consolidator of fragmented markets

Q & M may be able to play a part in spurring the consolidation of Malaysia’s fragmented dental market.

“There’s no listed company in Malaysia big enough to consolidate the individual dentists, like what we did in Singapore, so maybe Q & M can perform that role there too.”

Dr Ng also believes that Q&M Dental Group’s larger size may be an advantage in consolidating a fragmented market in Malaysia. However, the new government service tax in the country, along with the weak ringgit, are currently acting as deterrents for the company when it comes to expanding in the Malaysian market.

If you'd like to keep updated on the latest company and financial news, sign up for a FREE subscription to The Motley Fool's weekly investing newsletter, Take Stock Singapore

Also, like us on Facebook to follow our latest hot articles. The Motley Fool's purpose is to help the world invest, better.

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