According to Chew, Q&M's aggressive expansion of 40 clinics between 2019 and 2022, translating into a 66% growth, has resulted in higher staff costs and underutilised dentists.
Q&M Dental Group (Singapore), following an aggressive expansion, suffered from lower margins but its FY2023 might be the bottom and following a series of cost savings moves, the company is set to resume earnings growth.
"We believe new growth opportunities are appearing for Q&M," says Paul Chew of Phillip Securities in his Feb 11 note, where he has kept his "buy" call and 36 cents target price.
