“However, we expect contributions from Covid-19 testing services to stabilise moving forward as it continues to be an essential healthcare service in a post-pandemic society,” says the analysts.
CGS-CIMB Research is keeping its “add” recommendation on Q&M Dental but with a decreased target price of 78.5 cents from 83.5 cents previously.
In a Feb 10 report, analyst Tay Wee Kuang and Kenneth Tan expects the group’s upcoming 4QFY2021 ended December to see earnings growth momentum ease, due to the normalisation of Covid-19 testing contribution from the group’s testing arm Acumen. This is due to the government’s shift to self-testing for Covid-19 during the fourth quarter. Daily PCR tests conducted during 4Q2021 fell to 28,600 daily from 66,400 daily in the third quarter.
