We attended the official opening of Aoxin Q&M Dental Group Limited’s (“Aoxin’s”) new dental hospital, Panjin Aoxin Q&M Stomatology Hospital, in Liaoning Province, Northern China on Sunday 20th May-18. During this site visit, we also had the opportunity to visit its other dental centres in Liaoning Province, as well as to understand Aoxin’s operations and technical insights from the Group’s Board of Directors and Executive Officers.
Company Background
Aoxin is one of the leading providers of private dental services and dental equipment and supplies in Liaoning Province, Northern China. The Group’s business can be categorised into 3 segments: (a) Provision of private dental services, (b) Distribution of dental equipment and supplies, (c) Laboratory services.
Investment Thesis
Investment Actions
No stock rating or price target provided, as we do not have coverage on Aoxin Q&M Dental Group Ltd. However, on our back-of-the-envelope calculation, as we include earnings from its 3 new dental centres in FY18, we arrived at a valuation of S$0.29, based on estimated 0.82 SCents FY19 EPS (exchange rate of 1 SGD to 4.95 RMB) and 35x forward PER.
Dividend: No formal dividend policy.
Investment Risks
Company Background
One of the leading providers of private dental services and dental equipment and supplies in Liaoning Province, Northern China.
The Group’s business can be categorised into 3 segments:
The Company was listed on the Catalist board on 26 Apr-17.
Figure 1: Official opening of the new Panjin Hospital
Source: Company
Lin Sin has been an investment analyst in Phillip Securities Research since June 2014, where she started as an economist, focusing on China and ASEAN macroeconomics. Currently, she covers primarily the Consumers and Healthcare sectors in Singapore equities market.
She graduated with a Bachelor of Science in Mathematics and Economics from NTU.