SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

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Singapore Exchange Ltd (SGX)

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Equity Bottom-Up

Q & M Dental Group (Singapore) / Equity Bottom-Up

<p><em><strong>Non- SGX Report: These equity research reports are not written by the SGX.</strong>&nbsp;SGX supports the distribution of the research reports by external contributors. Please refer to the Disclaimer in the attached report.</em></p>
<h2>Q&amp;M Dental Group</h2>
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<h3>Officially levelled up</h3>
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<li>Q&amp;M Dental Group’s subsidiary Acumen Diagnostics was awarded a tender for the provision of Covid-19 swab and testing services.</li>
<li>We expect Q&amp;M to potentially be able to conduct an additional c.900 daily tests across phase 1 sites, as highlighted in the tender.</li>
<li>Reiterate Add with an unchanged TP of S$0.97, pegged at 20x FY22F P/E. Potential catalysts include higher-than-expected number of tests performed.</li>
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<p><strong>Awarded tender for swab and testing services</strong></p>
<p>● On17May2021,Q&amp;M’s51% owned subsidiary, Acumen Diagnostics, was awarded a tender by the Health Promotion Board for the provision of Covid-19 swab and testing services in Singapore.</p>
<p>● Q&amp;M was one of six awardees of the tender. There were a total of 18 suppliers who bid for the tender.</p>
<p>● The tender entails the provision of PCR testing services for individuals residing in dormitories, as well as those going for testing at regional screening centres (RSC).</p>
<p>● As per the terms of the tender, successful awardees will be appointed from an unspecified date in May until Sept 2021, with an option to extend for up to six months (Oct 2021 to Mar 2022) depending on the performance of the provider.</p>
<p>● According to the tender document provided by the Health Promotion Board, the total number of daily tests conducted across all phase 1 and phase 2 sites (namely RSCs and dormitories) are estimated at c.5.5k and c.22k, respectively.</p>
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<p><strong>Boost to testing services contribution</strong></p>
<p>● &nbsp;Assuming all awardees have an equal share of the tests (c.17%), we estimate that Q&amp;M should be able to conduct c.900 tests per day just from phase 1 sites alone.</p>
<p>● &nbsp;Our current assumptions are 1,500 tests per day, and we see upside to our EPS. Conservatively, due to lower ASPs and margins due to the competitive public tender, we expect potential earnings contribution from phase 1 sites of c.S$1m.</p>
<p>● &nbsp;We think phase 2 execution could be more feasible in the later part of 2021 as there have been no alarming cases observed yet in dormitories.</p>
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Non- SGX Report: These equity research reports are not written by the SGX.&nbsp;SGX supports the distribution of the research reports by external contributors. Please refer to the Disclaimer in the attached report.
Q&amp;M Dental Group

Officially levelled up





Q&amp;M Dental Group’s subsidiary Acumen Diagnostics was awarded a tender for the provision of Covid-19 swab and testing services.
We expect Q&amp;M to potentially be able to conduct an additional c.900 daily tests across phase 1 sites, as highlighted in the tender.
Reiterate Add with an unchanged TP of S$0.97, pegged at 20x FY22F P/E. Potential catalysts include higher-than-expected number of tests performed.





Awarded tender for swab and testing services
● On17May2021,Q&amp;M’s51% owned subsidiary, Acumen Diagnostics, was awarded a tender by the Health Promotion Board for the provision of Covid-19 swab and testing services in Singapore.
● Q&amp;M was one of six awardees of the tender. There were a total of 18 suppliers who bid for the tender.
● The tender entails the provision of PCR testing services for individuals residing in dormitories, as well as those going for testing at regional screening centres (RSC).
● As per the terms of the tender, successful awardees will be appointed from an unspecified date in May until Sept 2021, with an option to extend for up to six months (Oct 2021 to Mar 2022) depending on the performance of the provider.
● According to the tender document provided by the Health Promotion Board, the total number of daily tests conducted across all phase 1 and phase 2 sites (namely RSCs and dormitories) are estimated at c.5.5k and c.22k, respectively.




Boost to testing services contribution
● &nbsp;Assuming all awardees have an equal share of the tests (c.17%), we estimate that Q&amp;M should be able to conduct c.900 tests per day just from phase 1 sites alone.
● &nbsp;Our current assumptions are 1,500 tests per day, and we see upside to our EPS. Conservatively, due to lower ASPs and margins due to the competitive public tender, we expect potential earnings contribution from phase 1 sites of c.S$1m.
● &nbsp;We think phase 2 execution could be more feasible in the later part of 2021 as there have been no alarming cases observed yet in dormitories.














(Non-SGX Report) Q&M Dental Group: Officially Levelled Up

<div><em><strong>Non- SGX Report: These equity research reports are not written by the SGX</strong>.&nbsp;SGX supports the distribution of the research reports by external contributors. Please refer to the Disclaimer in the attached report.</em></div>
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<h2>Q&amp;M Dental Group</h2>
<h3>Keep on smiling</h3>
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<li>1Q21 net profit was in line with expectations at S$9m (+618% yoy). We estimate Covid tests formed 15% (c. S$2m) of Q&amp;M’s group gross profit.</li>
<li>We up EPS by 4-12% for FY21-23F to account for higher number of lab tests to reflect heightened daily Covid-19 tests in Singapore (53k in May 21).</li>
<li>TP is up to S$0.97 (previously S$0.92), still based on 20x FY22F P/E. Key catalysts include higher-than-expected number of tests conducted.</li>
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<p><strong>Strong performance from dental clinics</strong><br>Q&amp;M’s 1Q21 reported net profit was in line with expectations at S$9m (+618% yoy), forming 29% of our FY21F forecast. The group recorded a 1Q21 revenue of S$44m (+47% yoy), above our expectations due to stronger-than-expected contributions from dental and medical clinics (S$39m, +41% yoy). Gross margin for the quarter was 30%, slightly lower than our expectations of 31% due to higher-than-expected staff expenses incurred. The group recorded a one-off net gain of S$4.3m from the complete disposal of its stake in Aidite. In addition, the group declared an interim DPS of 1 Sct for the quarter.</p>
<p><strong>Up our test numbers assumptions</strong><br>Revenue contribution from equipment distribution and testing services in 1Q21 rose to S$5m (+121% yoy) as the group continued to ramp up its testing operations. Given that the average number of swab tests conducted in Singapore has risen to c.53k as at 3 May 2021 (vs. c.34k in Feb 2021), we think that the group was able to successfully ramp up its testing operations and gain market share in 1Q21. While the group did not specify the breakdown of revenue between equipment distribution and testing services, we estimate that 1Q21 gross profit from testing was c.S$2m. In view of the heightened pace of mandatory swab tests being carried out in Singapore, we factor in higher number of tests in our forecasts to 1,500/day (previously 800) or c.3% of total market share currently.</p>
<p><strong>Opened 3 new outlets in Singapore, 2 in Malaysia</strong><br>Q&amp;M has opened five new dental clinics this year as of end-Apr, with three located in Singapore (in Tampines Hub, Compassvale Crescent, and Orchard Central) and two located in Malaysia (in Semenyih and Seremban). This brings the group’s total current outlet count in Singapore and Malaysia to 86 and 37 respectively. Q&amp;M has also secured locations for 3 new dental clinics to be opened in Singapore (in Bedok Reservoir, Jurong Yuhua, and Canberra), which are expected to commence operations in FY21F. Given the recently reinstated movement control order (MCO) in Malaysia, we reduce our FY21F outlet expansion forecast in Malaysia to 7 outlets (from 10 outlets).</p>
<p><strong>Reiterate Add with higher TP of S$0.97, still on 20x FY22F P/E</strong><br>We think Q&amp;M could be a beneficiary from the recent tightening of testing measures in Singapore. Our TP is based on a c.25% discount to peers for its smaller market cap. Key downside risks: increasing competitive pressure, rising employee costs. Potential re- rating catalysts: higher-than-expected number of tests performed.</p>
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Non- SGX Report: These equity research reports are not written by the SGX.&nbsp;SGX supports the distribution of the research reports by external contributors. Please refer to the Disclaimer in the attached report.






Q&amp;M Dental Group
Keep on smiling





1Q21 net profit was in line with expectations at S$9m (+618% yoy). We estimate Covid tests formed 15% (c. S$2m) of Q&amp;M’s group gross profit.
We up EPS by 4-12% for FY21-23F to account for higher number of lab tests to reflect heightened daily Covid-19 tests in Singapore (53k in May 21).
TP is up to S$0.97 (previously S$0.92), still based on 20x FY22F P/E. Key catalysts include higher-than-expected number of tests conducted.





Strong performance from dental clinics Q&amp;M’s 1Q21 reported net profit was in line with expectations at S$9m (+618% yoy), forming 29% of our FY21F forecast. The group recorded a 1Q21 revenue of S$44m (+47% yoy), above our expectations due to stronger-than-expected contributions from dental and medical clinics (S$39m, +41% yoy). Gross margin for the quarter was 30%, slightly lower than our expectations of 31% due to higher-than-expected staff expenses incurred. The group recorded a one-off net gain of S$4.3m from the complete disposal of its stake in Aidite. In addition, the group declared an interim DPS of 1 Sct for the quarter.
Up our test numbers assumptions Revenue contribution from equipment distribution and testing services in 1Q21 rose to S$5m (+121% yoy) as the group continued to ramp up its testing operations. Given that the average number of swab tests conducted in Singapore has risen to c.53k as at 3 May 2021 (vs. c.34k in Feb 2021), we think that the group was able to successfully ramp up its testing operations and gain market share in 1Q21. While the group did not specify the breakdown of revenue between equipment distribution and testing services, we estimate that 1Q21 gross profit from testing was c.S$2m. In view of the heightened pace of mandatory swab tests being carried out in Singapore, we factor in higher number of tests in our forecasts to 1,500/day (previously 800) or c.3% of total market share currently.
Opened 3 new outlets in Singapore, 2 in Malaysia Q&amp;M has opened five new dental clinics this year as of end-Apr, with three located in Singapore (in Tampines Hub, Compassvale Crescent, and Orchard Central) and two located in Malaysia (in Semenyih and Seremban). This brings the group’s total current outlet count in Singapore and Malaysia to 86 and 37 respectively. Q&amp;M has also secured locations for 3 new dental clinics to be opened in Singapore (in Bedok Reservoir, Jurong Yuhua, and Canberra), which are expected to commence operations in FY21F. Given the recently reinstated movement control order (MCO) in Malaysia, we reduce our FY21F outlet expansion forecast in Malaysia to 7 outlets (from 10 outlets).
Reiterate Add with higher TP of S$0.97, still on 20x FY22F P/E We think Q&amp;M could be a beneficiary from the recent tightening of testing measures in Singapore. Our TP is based on a c.25% discount to peers for its smaller market cap. Key downside risks: increasing competitive pressure, rising employee costs. Potential re- rating catalysts: higher-than-expected number of tests performed.














(Non-SGX Report) Q&M Dental Group: Keep on Smiling

<p><em><strong>Non- SGX Report: These equity research reports are not written by the SGX.&nbsp;</strong>SGX supports the distribution of the research reports by external contributors. Please refer to the Disclaimer in the attached report.</em></p>
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<h2>Q&amp;M Dental Group</h2>
<h3>Swab up</h3>
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<li>We expect a ramp-up in Covid-19 testing services with rising Covid-19 cases in Singapore to benefit Q&amp;M, more meaningfully from 2Q21F.</li>
<li>We estimate 1Q21F net profit at c.S$9m (163% higher vs. 1Q19), factoring in seasonal weakness and S$5m gain from the disposal of stake in Aidite.</li>
<li>At c.13x FY22F P/E, Q&amp;M trades below -2 s.d. of its 12-year valuation since 2009. Reiterate Add and TP of S$0.92, still based on 20x FY22F P/E.</li>
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<p><strong>Covid-19 cases on the rise; measures to tighten</strong><br>Singapore is tightening its safety measures with effect from 8 May 2021, as the number of new daily Covid-19 cases continues to rise. The uptick in new cases has been largely attributed to a new cluster at Tan Tock Seng Hospital (TTSH). Covid-19 testing of migrant workers has been ramped up as of 29 Apr 2021. Also, new migrant workers arriving from higher-risk countries will be isolated and subjected to repeated PCR Covid-19 tests. We expect the tightened measures and heightened pace of testing to be beneficial for Q&amp;M’s laboratory tests services. As of Feb 2021, the average number of daily swab tests conducted was c.34k (vs. c.27k in Sep 2020), according to the Ministry of Health. We estimate c.15k cluster-focused tests has been carried out since 22 Apr 2021 (Fig 1).</p>
<p><strong>Added 2 new outlets in Singapore and 1 in Malaysia</strong><br>Q&amp;M continued with its expansion plans in 1Q21, and opened two new dental clinics in Singapore (in Tampines Hub and Compassvale Crescent) and one new dental clinic in Malaysia (in Jasin, Johor). This brings the group’s total dental outlet count to 85 outlets in Singapore and 35 in Malaysia, up from 83 and 34 respectively as of end-FY20. We still expect the group to open 10 new outlets each in Singapore and Malaysia.</p>
<p><strong>1Q21 preview: ramp-up in testing contribution</strong><br>As announced in the group’s FY20 results, Q&amp;M will resume quarterly reporting in FY21, with 1Q21 results to be reported by 12 May. While we note that 1Q21 has historically been a seasonally weaker quarter (c.23% of full-year revenue), we still expect favourable results on the back of a ramp-up in Covid-19 testing services. Having said that, we expect more meaningful contribution from testing to start from 2Q21F onwards, as O&amp;M gradually ramped up its testing operations in 1Q21. We estimate 1Q21F revenue at c.S$37m (+25% vs. 1Q19) and net profit at c.S$9m (+163% vs. 1Q19), which includes a one-off S$5m net gain from the disposal of the group’s stake in Aidite.</p>
<p><strong>Reiterate Add; TP of S$0.92 on 20x FY22F P/E; 5.5% dividend yield</strong><br>We expect FY21F to be a record year for Q&amp;M on the back of robust outlet expansion and ramp-up in testing services. We raise our FY21F/22F DPS estimates to 3.4 Scts on the back of strong net profit outlook. Our TP is based on a c.25% discount to peers for its smaller market cap. Key downside risks: resurging Covid-19 infections and increasing competitive pressure. Potential re-rating catalysts: stronger-than-expected number of tests performed.</p>
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Non- SGX Report: These equity research reports are not written by the SGX.&nbsp;SGX supports the distribution of the research reports by external contributors. Please refer to the Disclaimer in the attached report.




Q&amp;M Dental Group
Swab up





We expect a ramp-up in Covid-19 testing services with rising Covid-19 cases in Singapore to benefit Q&amp;M, more meaningfully from 2Q21F.
We estimate 1Q21F net profit at c.S$9m (163% higher vs. 1Q19), factoring in seasonal weakness and S$5m gain from the disposal of stake in Aidite.
At c.13x FY22F P/E, Q&amp;M trades below -2 s.d. of its 12-year valuation since 2009. Reiterate Add and TP of S$0.92, still based on 20x FY22F P/E.





Covid-19 cases on the rise; measures to tighten Singapore is tightening its safety measures with effect from 8 May 2021, as the number of new daily Covid-19 cases continues to rise. The uptick in new cases has been largely attributed to a new cluster at Tan Tock Seng Hospital (TTSH). Covid-19 testing of migrant workers has been ramped up as of 29 Apr 2021. Also, new migrant workers arriving from higher-risk countries will be isolated and subjected to repeated PCR Covid-19 tests. We expect the tightened measures and heightened pace of testing to be beneficial for Q&amp;M’s laboratory tests services. As of Feb 2021, the average number of daily swab tests conducted was c.34k (vs. c.27k in Sep 2020), according to the Ministry of Health. We estimate c.15k cluster-focused tests has been carried out since 22 Apr 2021 (Fig 1).
Added 2 new outlets in Singapore and 1 in Malaysia Q&amp;M continued with its expansion plans in 1Q21, and opened two new dental clinics in Singapore (in Tampines Hub and Compassvale Crescent) and one new dental clinic in Malaysia (in Jasin, Johor). This brings the group’s total dental outlet count to 85 outlets in Singapore and 35 in Malaysia, up from 83 and 34 respectively as of end-FY20. We still expect the group to open 10 new outlets each in Singapore and Malaysia.
1Q21 preview: ramp-up in testing contribution As announced in the group’s FY20 results, Q&amp;M will resume quarterly reporting in FY21, with 1Q21 results to be reported by 12 May. While we note that 1Q21 has historically been a seasonally weaker quarter (c.23% of full-year revenue), we still expect favourable results on the back of a ramp-up in Covid-19 testing services. Having said that, we expect more meaningful contribution from testing to start from 2Q21F onwards, as O&amp;M gradually ramped up its testing operations in 1Q21. We estimate 1Q21F revenue at c.S$37m (+25% vs. 1Q19) and net profit at c.S$9m (+163% vs. 1Q19), which includes a one-off S$5m net gain from the disposal of the group’s stake in Aidite.
Reiterate Add; TP of S$0.92 on 20x FY22F P/E; 5.5% dividend yield We expect FY21F to be a record year for Q&amp;M on the back of robust outlet expansion and ramp-up in testing services. We raise our FY21F/22F DPS estimates to 3.4 Scts on the back of strong net profit outlook. Our TP is based on a c.25% discount to peers for its smaller market cap. Key downside risks: resurging Covid-19 infections and increasing competitive pressure. Potential re-rating catalysts: stronger-than-expected number of tests performed.













(Non-SGX Report) Q&M Dental Group: Swab Up

<p><em><strong>Non- SGX Report: These equity research reports are not written by the SGX.</strong>&nbsp;SGX supports the distribution of the research reports by external contributors. Please refer to the Disclaimer in the attached report.</em></p>
<h2>Q &amp; M Dental Group</h2>
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<h3>Polishing up for a brighter smile</h3>
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<li>Adding 20 dental clinics per year in Singapore and Malaysia to drive 20% core profit CAGR in FY20-22F</li>
<li>New revenue stream from the sale of Covid-19 test kits and laboratory tests helps boost Q&amp;M’s bottom line and has huge potential</li>
<li>Valuations undemanding at 14.4x FY22 PE, against 5- year mean of 22x, with attractive 7.5% FY21F yield</li>
<li>Initiating coverage with BUY, TP of S$0.81</li>
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<p><strong>Initiate coverage of</strong> Q &amp; M with BUY, TP of S$0.81, implying upside of 32%. The stock is trading at an undemanding 14.4x FY22F, which is -1.5 SD of its historical mean. With an asset- light model and strong cash flow generation ability, we believe Q&amp;M can sustain a high dividend pay-out ratio of 90%, translating to an attractive dividend yield of 7.5% in FY21F.</p>
<p><strong>Aiming for further market share gains</strong>; boosted by AI. With c.10% market share, Q &amp; M is the leader in private dental healthcare in Singapore, with room for further growth. We like its relatively resilient core dental business and believe it can leverage on its strong branding, customer retention and recruitment of dentists, and new initiatives such as dental artificial intelligence (AI) to capture more market share. We assume Q &amp; M will open 20 new dental clinics in Singapore and Malaysia per annum over FY20-22F to drive its growth.</p>
<p><strong>New COVID-19 test kits and lab tests business has huge potential.</strong> Q &amp; M’s entry into this new business in FY20 has been opportunistic and could provide substantial upside to earnings if it pans out well. With relatively conservative assumptions, we project this new segment to contribute 16%/20% to net earnings in FY21F/FY22F.</p>
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Non- SGX Report: These equity research reports are not written by the SGX.&nbsp;SGX supports the distribution of the research reports by external contributors. Please refer to the Disclaimer in the attached report.
Q &amp; M Dental Group




Polishing up for a brighter smile





Adding 20 dental clinics per year in Singapore and Malaysia to drive 20% core profit CAGR in FY20-22F
New revenue stream from the sale of Covid-19 test kits and laboratory tests helps boost Q&amp;M’s bottom line and has huge potential
Valuations undemanding at 14.4x FY22 PE, against 5- year mean of 22x, with attractive 7.5% FY21F yield
Initiating coverage with BUY, TP of S$0.81





Initiate coverage of Q &amp; M with BUY, TP of S$0.81, implying upside of 32%. The stock is trading at an undemanding 14.4x FY22F, which is -1.5 SD of its historical mean. With an asset- light model and strong cash flow generation ability, we believe Q&amp;M can sustain a high dividend pay-out ratio of 90%, translating to an attractive dividend yield of 7.5% in FY21F.
Aiming for further market share gains; boosted by AI. With c.10% market share, Q &amp; M is the leader in private dental healthcare in Singapore, with room for further growth. We like its relatively resilient core dental business and believe it can leverage on its strong branding, customer retention and recruitment of dentists, and new initiatives such as dental artificial intelligence (AI) to capture more market share. We assume Q &amp; M will open 20 new dental clinics in Singapore and Malaysia per annum over FY20-22F to drive its growth.
New COVID-19 test kits and lab tests business has huge potential. Q &amp; M’s entry into this new business in FY20 has been opportunistic and could provide substantial upside to earnings if it pans out well. With relatively conservative assumptions, we project this new segment to contribute 16%/20% to net earnings in FY21F/FY22F.













(Non-SGX Report) Q & M Dental Group: Polishing up for a Brighter Smile

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<li><strong>On 17 April, the 7-day rolling average of daily new confirmed cases of COVID-19 moved above its January 2021 high, to 766,231 cases. A key attributor is daily new infections in India soaring fivefold from more than 50,000 cases at the end of March, to more than 250,000 cases on 17 April.  </strong></li>
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<li><strong>Top Glove Corporation Bhd, Medtecs International, Riverstone Holdings, UG Healthcare Corporation and Aspen Group Holdings have all gained in the April month to 16 April, averaging 11.7% gains over the 11 sessions, bringing their average 2021 YTD total return to 8.0%. </strong></li>
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<li><strong>Aside from medical suppliers, the most traded Singapore-listed Healthcare-related stocks in 2021 have included Thomson Medical, Haw Par, Raffles Medical, Q&amp;M Dental and PLife REIT. The five stocks averaged a 1.0% gain over the past 11 sessions, bringing their median YTD total return to 26.0%. </strong></li>
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<strong>Econ Healthcare (Asia), the largest private nursing home operator by revenue in Singapore and Malaysia, has listed on Catalist on 19 April. With an issue price of 28 cents per share, the stock ended the AM session at 29.5 cents per share and a market value of S$76 million.</strong><strong> Click <a href="https://www.sgx.com/research-education/market-updates/20210419-econ-healthcare-largest-private-nursing-home-operator-sg">here</a> to read more. </strong>
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			<p>Progress in COVID-19 vaccination roll-out across has now seen close to 900 million doses administered across the globe. Data from ourworldindata.org also shows that the current total number of confirmed cases (assumed lower than the actual number due to limited testing) is over 140 million cases<strong>. While the daily new confirmed cases of COVID-19 has returned to January highs, the smoothed 7-day rolling average has recently risen above its January 2021 high to 766,231 cases on 17 April.</strong> Daily new Infections in India have soared fivefold from more than 50,000 cases at the end of March, to more than 250,000 cases on 17 April. </p>
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    <div class='content-caption'>7-day Rolling Average of daily new Global COVID-19 Cases</div>
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<p><strong>Top</strong> <strong>Glove Corporation Bhd, Medtecs International, Riverstone Holdings, UG Healthcare Corporation and Aspen Group Holdings have all gained in the April month to 16 April, averaging 11.7% gains.</strong> As illustrated above, this has coincided with the 7-day rolling average of daily new global COVID-19 cases returning to above 700,000 cases per day, as seen in early January, and up from the less than 400,000 cases per day reported between mid-February and early-March.</p>

<p>In September 2020, Aspen Holdings announced its diversification into the manufacturing and distribution of rubber gloves in a joint venture with CMY Capital Sdn Bhd. Aspen Holdings has been among the top 100 traded Singapore stocks so far in 2021, after ranking among the top 500 traded stocks in 1H20. The five stocks are tabled below and sort by average daily turnover in the 2021 year to 16 April.</p>

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			<p><strong>Code</strong></p>
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			<p><strong>Market Cap (S$M) </strong></p>
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			<p><strong>Average Daily Turnover in YTD S$M</strong></p>
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			<p><strong>Total Return MTD %</strong></p>
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			<p><strong>Total Return YTD %</strong></p>
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			<p><strong>Total Return 3Y %</strong></p>
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			<p><strong>P/E (x)</strong></p>
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			<p><strong>P/B (x)</strong></p>
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			<p>Top Glove</p>
			</td>
			<td>
			<p>BVA</p>
			</td>
			<td>
			<p>   14,007</p>
			</td>
			<td>
			<p>8.4</p>
			</td>
			<td>
			<p>        15.1</p>
			</td>
			<td>
			<p>        (8.2)</p>
			</td>
			<td>
			<p>247</p>
			</td>
			<td>
			<p>7</p>
			</td>
			<td>
			<p>6</p>
			</td>
		</tr>
<tr>
<td>
			<p>Medtecs Intl</p>
			</td>
			<td>
			<p>546</p>
			</td>
			<td>
			<p>         563</p>
			</td>
			<td>
			<p>7.7</p>
			</td>
			<td>
			<p>        10.8</p>
			</td>
			<td>
			<p>          3.0</p>
			</td>
			<td>
			<p>2,210</p>
			</td>
			<td>
			<p>3</p>
			</td>
			<td>
			<p>2</p>
			</td>
		</tr>
<tr>
<td>
			<p>Riverstone</p>
			</td>
			<td>
			<p>AP4</p>
			</td>
			<td>
			<p>     2,045</p>
			</td>
			<td>
			<p>5.4</p>
			</td>
			<td>
			<p>        12.2</p>
			</td>
			<td>
			<p>        24.3</p>
			</td>
			<td>
			<p>175</p>
			</td>
			<td>
			<p>10</p>
			</td>
			<td>
			<p>5</p>
			</td>
		</tr>
<tr>
<td>
			<p>UG Healthcare</p>
			</td>
			<td>
			<p>8K7</p>
			</td>
			<td>
			<p>         385</p>
			</td>
			<td>
			<p>3.5</p>
			</td>
			<td>
			<p>        11.6</p>
			</td>
			<td>
			<p>          7.0</p>
			</td>
			<td>
			<p>878</p>
			</td>
			<td>
			<p>6</p>
			</td>
			<td>
			<p>3</p>
			</td>
		</tr>
<tr>
<td>
			<p>Aspen</p>
			</td>
			<td>
			<p>1F3</p>
			</td>
			<td>
			<p>         271</p>
			</td>
			<td>
			<p>1.8</p>
			</td>
			<td>
			<p>          8.7</p>
			</td>
			<td>
			<p>        13.6</p>
			</td>
			<td>
			<p>22</p>
			</td>
			<td>
			<p>11</p>
			</td>
			<td>
			<p>2</p>
			</td>
		</tr>
</tbody></table>
<p class="text-caption">                                                                                                                                                                        Source: SGX StockFacts, Refinitv, Bloomberg (Data as of 16 April 2021)</p>

<p class="text-caption"> </p>

<p><strong>In a measured move, on the other side of the gains of the above five medical suppliers, the share price of Singapore Airlines has declined 2.7% in the April month to 16 April</strong>. On 15 April, Singapore’s flag carrier noted at the end of March 2021, Group capacity reached 23% of pre-COVID levels, which was lower than the earlier expectation of around 25%, and passenger capacity is expected to be around 27% of pre-COVID levels by June 2021. Like Singapore Airlines, global Airlines have seen marginal declines in the April month-to-date, yet on average maintain double-digit year-to-date gains.</p>

<p><strong>For the Healthcare Sector overall, the iEdge SG All Healthcare Index has gained 4.5% in the month of April through to 16 April, bringing the 2021 year-to-date total return to 11.9%. </strong>Aside from the aforementioned five medical suppliers, the most traded Singapore-listed Healthcare-related stocks in 2021 have included Thomson Medical Group, Haw Par Corporation, Raffles Medical Group, Q&amp;M Dental Group Singapore and Parkway Life REIT. The five stocks averaged a 1.0% gain over the past 11 sessions, bringing their median year-to-date total return to 26.0%.</p>

<p><strong>This morning, Econ Healthcare (Asia), the largest private nursing home operator by revenue in Singapore and Malaysia, <a href="https://www.sgx.com/research-education/market-updates/20210419-econ-healthcare-largest-private-nursing-home-operator-sg">listed on Catalist</a>. </strong>With an issue price of 28 cents per share, the stock ended the AM session at 29.5 cents per share and a market value of S$76 million. As discussed here, the company has track record of 30 years, and primarily provides residential nursing care, home care, rehabilitation, clinical as well as Traditional Chinese Medicine services in 10 Medicare centres and nursing homes in Singapore, Malaysia and China, with the establishment of Chongqing Nursing Home, which is expected to commence operations in 2021. According to Euromonitor, Econ Healthcare (Asia) is the largest private nursing home operator in Singapore and Malaysia by revenue with a market share of 26.9% and 43.2% respectively.</p>
</body></html>





			
On 17 April, the 7-day rolling average of daily new confirmed cases of COVID-19 moved above its January 2021 high, to 766,231 cases. A key attributor is daily new infections in India soaring fivefold from more than 50,000 cases at the end of March, to more than 250,000 cases on 17 April.  
			

Top Glove Corporation Bhd, Medtecs International, Riverstone Holdings, UG Healthcare Corporation and Aspen Group Holdings have all gained in the April month to 16 April, averaging 11.7% gains over the 11 sessions, bringing their average 2021 YTD total return to 8.0%. 
			

Aside from medical suppliers, the most traded Singapore-listed Healthcare-related stocks in 2021 have included Thomson Medical, Haw Par, Raffles Medical, Q&amp;M Dental and PLife REIT. The five stocks averaged a 1.0% gain over the past 11 sessions, bringing their median YTD total return to 26.0%. 
			


Econ Healthcare (Asia), the largest private nursing home operator by revenue in Singapore and Malaysia, has listed on Catalist on 19 April. With an issue price of 28 cents per share, the stock ended the AM session at 29.5 cents per share and a market value of S$76 million. Click here to read more. 

			
 

			Progress in COVID-19 vaccination roll-out across has now seen close to 900 million doses administered across the globe. Data from ourworldindata.org also shows that the current total number of confirmed cases (assumed lower than the actual number due to limited testing) is over 140 million cases. While the daily new confirmed cases of COVID-19 has returned to January highs, the smoothed 7-day rolling average has recently risen above its January 2021 high to 766,231 cases on 17 April. Daily new Infections in India have soared fivefold from more than 50,000 cases at the end of March, to more than 250,000 cases on 17 April. 
			
		


      
    
    7-day Rolling Average of daily new Global COVID-19 Cases


Top Glove Corporation Bhd, Medtecs International, Riverstone Holdings, UG Healthcare Corporation and Aspen Group Holdings have all gained in the April month to 16 April, averaging 11.7% gains. As illustrated above, this has coincided with the 7-day rolling average of daily new global COVID-19 cases returning to above 700,000 cases per day, as seen in early January, and up from the less than 400,000 cases per day reported between mid-February and early-March.

In September 2020, Aspen Holdings announced its diversification into the manufacturing and distribution of rubber gloves in a joint venture with CMY Capital Sdn Bhd. Aspen Holdings has been among the top 100 traded Singapore stocks so far in 2021, after ranking among the top 500 traded stocks in 1H20. The five stocks are tabled below and sort by average daily turnover in the 2021 year to 16 April.

 




			Stock
			
			
			Code
			
			
			Market Cap (S$M) 
			
			
			Average Daily Turnover in YTD S$M
			
			
			Total Return MTD %
			
			
			Total Return YTD %
			
			
			Total Return 3Y %
			
			
			P/E (x)
			
			
			P/B (x)
			
		


			Top Glove
			
			
			BVA
			
			
			   14,007
			
			
			8.4
			
			
			        15.1
			
			
			        (8.2)
			
			
			247
			
			
			7
			
			
			6
			
		


			Medtecs Intl
			
			
			546
			
			
			         563
			
			
			7.7
			
			
			        10.8
			
			
			          3.0
			
			
			2,210
			
			
			3
			
			
			2
			
		


			Riverstone
			
			
			AP4
			
			
			     2,045
			
			
			5.4
			
			
			        12.2
			
			
			        24.3
			
			
			175
			
			
			10
			
			
			5
			
		


			UG Healthcare
			
			
			8K7
			
			
			         385
			
			
			3.5
			
			
			        11.6
			
			
			          7.0
			
			
			878
			
			
			6
			
			
			3
			
		


			Aspen
			
			
			1F3
			
			
			         271
			
			
			1.8
			
			
			          8.7
			
			
			        13.6
			
			
			22
			
			
			11
			
			
			2
			
		

                                                                                                                                                                        Source: SGX StockFacts, Refinitv, Bloomberg (Data as of 16 April 2021)

 

In a measured move, on the other side of the gains of the above five medical suppliers, the share price of Singapore Airlines has declined 2.7% in the April month to 16 April. On 15 April, Singapore’s flag carrier noted at the end of March 2021, Group capacity reached 23% of pre-COVID levels, which was lower than the earlier expectation of around 25%, and passenger capacity is expected to be around 27% of pre-COVID levels by June 2021. Like Singapore Airlines, global Airlines have seen marginal declines in the April month-to-date, yet on average maintain double-digit year-to-date gains.

For the Healthcare Sector overall, the iEdge SG All Healthcare Index has gained 4.5% in the month of April through to 16 April, bringing the 2021 year-to-date total return to 11.9%. Aside from the aforementioned five medical suppliers, the most traded Singapore-listed Healthcare-related stocks in 2021 have included Thomson Medical Group, Haw Par Corporation, Raffles Medical Group, Q&amp;M Dental Group Singapore and Parkway Life REIT. The five stocks averaged a 1.0% gain over the past 11 sessions, bringing their median year-to-date total return to 26.0%.

This morning, Econ Healthcare (Asia), the largest private nursing home operator by revenue in Singapore and Malaysia, listed on Catalist. With an issue price of 28 cents per share, the stock ended the AM session at 29.5 cents per share and a market value of S$76 million. As discussed here, the company has track record of 30 years, and primarily provides residential nursing care, home care, rehabilitation, clinical as well as Traditional Chinese Medicine services in 10 Medicare centres and nursing homes in Singapore, Malaysia and China, with the establishment of Chongqing Nursing Home, which is expected to commence operations in 2021. According to Euromonitor, Econ Healthcare (Asia) is the largest private nursing home operator in Singapore and Malaysia by revenue with a market share of 26.9% and 43.2% respectively.



Medical Suppliers Edge 12% Higher in April with Global COVID-19 Resurgence

Singapore

Healthway Medical Corp. Ltd. provides outpatient medical services in Singapore. The Company offers care in the areas of family medicine, specialists care, dental and oral care and medical aesthetics.

ISEC Healthcare Ltd. provides eyecare (ophthalmology) services in Malaysia and Singapore. The Company provides clinical care, research and educational services. ISEC Healthcare operates across Malaysia and Singapore.

OUE Lippo Healthcare Limited ("OUELH") is a subsidiary company of OUE Limited ("OUE") and is listed on the Catalist Board of Singapore Exchange Securities Trading Limited.

OUELH provides high-quality and sustainable healthcare solutions through the acquisition, development, management, and operations of healthcare facilities across Asia. Leveraging on the strategic partnerships it has, OUELH continually seeks to expand its portfolio across the region.

Established in May 2001, Cordlife Group Limited ("Cordlife", together with its subsidiaries, the "Group") is a leading company dedicated to safeguarding the well-being of mother and child. The Group is listed on the Mainboard of the Singapore Exchange since 2012 and is a pioneer in private cord blood banking in Asia.

Cordlife owns the largest network of cord blood banks in Asia with full stem cell banking facilities in six key markets, namely Singapore, Hong Kong, Indonesia, India, Malaysia and the Philippines. In Singapore, Hong Kong, the Philippines and Indonesia, Cordlife operates the largest private cord blood banks and it is amongst the top three market leaders in India and Malaysia. In January 2018, Cordlife became the market leader in Hong Kong with the acquisition of the largest private cord blood bank, Healthbaby Biotech (Hong Kong) Co., Limited. Through its majority-owned subsidiary in Malaysia, Stemlife Berhad, Cordlife holds an indirect stake in Thailand's largest private cord blood bank, Thai Stemlife. Cordlife has also established its presence in Myanmar, Vietnam, Macau, Brunei and Bangladesh.

Beyond cord blood, cord lining and cord tissue banking, Cordlife offers a comprehensive suite of diagnostics services for the family including non-invasive prenatal testing, paediatric vision screening, newborn metabolic screening and family genetic screening services.  Quality and customer focus are amongst some of the cornerstones of Cordlife.

HC Surgical Specialists Limited operates as a medical services group. The Company focuses on the provision of endoscopic procedures, including gastroscopies and colonoscopies, and general surgery services with a focus on colorectal procedures. HC Surgical Specialists serves customers in Singapore.

AsiaMedic Limited is a healthcare provider that focuses on the management of clinical services in the fields of disease prevention, early illness detection, and advanced diagnostics. The Company provides clinical and management services in Singapore and Internationally.

Religare Health Trust is structured as a business trust and invests in medical and healthcare assets and services in Asia, Australasia and emerging markets.

Talkmed Group Limited provides medical oncology services to patients.

UG Healthcare Corporation Limited operates as a medical supply company. The Company manufactures and distributes surgical, vinyl and cleanroom gloves, face masks, and other medical disposables.

I'rom Group Co., Ltd. provides management services on clinical trials and staffing consulting services including providing nurses, pharmacists, and clinical pathologists to medical institutions as well as training medicalrelated staffs.  The Company also provides and leases facilities and finances for these who are to start their clinics.

Pacific Smiles Group Limited owns and operates dental centers. The Company's centers provide preventative care, diagnosis and treatment for patients with a broad range of dental care requirements.

Bionet Corp. is a cord blood bank.  The Company collects, processes, and cryopreserves the cord blood.

Thai Nakarin Hospital PCL operates the Thai Nakarin Hospital. The hospital provides 24-hour inpatient and outpatient services.

Mahachai Hospital Public Company Limited owns and operates Mahachai Hospital. Located in Samut Sakorn, a province adjacent to Bangkok, the Hospital has 180 inpatient beds and 17 diagnostic rooms for 880 outpatients daily.

Chiang Mai Ram Medical Business PLC operates hospital's in Thailand.

Hi-Clearance Inc. sells medical apparatus and medical materials. The Company's products include artificial kidneys, blood tubing sets, paunch flushers, dialysis solutions, erythropoietin and puncture needles, and biomedical materials, such as teeth protectors, artificial dermises, cardiac catheters and hepatic catheters.

Nippon Care Supply Co., Ltd. wholesales medical equipment to organizations which then offer it as rental products to the elderly.  The Company services any used rental products for recycling within the organizations.  Nippon Care Supply's line of rental products include electronic beds, wheelchairs, walking aids, sterilization equipment, and inspection devices.

Srivichai Vejvivat PCL operates a hospital that provides specialty health care services in Thailand.

Oriola-KD Oyj operates with in two business areas: Pharmaceutical Trade and Healthcare and Dental Trade.  The Company is active in Finland, Sweden, the Baltic countries.

Q & M Dental Group (Singapore) Limited operates dental clinics. The Company offers aesthetic, children's and general dentistry; fits crowns, dentures and braces; and offers bleeding gum treatment, gum surgery and oral surgery; and treats snoring and teeth grinding.

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Q & M Dental Group (Singapore) (QNM SP)

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Non- SGX Report: These equity research reports are not written by the SGX. SGX supports the distribution of the research reports by external...

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(Non-SGX Report) Q&M Dental Group: Keep on Smiling

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Singapore Exchange Ltd (SGX)

(Non-SGX Report) Q&M Dental Group: Swab Up

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Singapore Exchange Ltd (SGX)

(Non-SGX Report) Q & M Dental Group: Polishing up for a Brighter Smile

Non- SGX Report: These equity research reports are not written by the SGX. SGX supports the distribution of the research reports by external...

Singapore Exchange Ltd (SGX)

Medical Suppliers Edge 12% Higher in April with Global COVID-19 Resurgence

Top Glove Corporation Bhd, Medtecs International, Riverstone Holdings, UG Healthcare Corporation and Aspen Group Holdings...

Singapore Exchange Ltd (SGX)

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