SINGAPORE (July 25): RHB is adding 200,000 shares of Q&M Dental Group at 70 cents each, into its model portfolio, This follows the group’s acquisition of a 33% stake in Shenzhen New Perfect Dental Research. RHB has a target price of $1 for the stock.

According to RHB’s analyst Jarick Seet, the Shenzhen acquisition comes with a profit guarantee of $1.03 million a year. As such, he estimates that earnings would reach about $17 million for FY2016, representing an earnings growth of 25%.

Q&M Dental was founded in 1996, when CEO Ng Chin Siau started his dental practice as a sole proprietorship under the name “Q&M Dental Surgery”. Now, the group owns 68 dental clinics and two dental supplies and equipment distribution companies, and operates out of Singapore, Malaysia and China.

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