Q&M Dental Group - CGS-CIMB Research 2021-10-11: PCR Waning, ART Shining

Q & M DENTAL GROUP (S) LIMITED (SGX:QC7) | SGinvestors.io Q & M DENTAL GROUP (S) LIMITED (SGX:QC7)

Q&M Dental Group - PCR Waning, ART Shining

  • PCR testing in Singapore is to be reserved for symptomatic COVID-19 patients and travellers requiring on-arrival and pre-departure tests.
  • Previously, PCR tests were required for ART-positive individuals (confirmatory) as well as patients exiting home quarantine.
  • Reduced demand for PCR tests could see FY22F/23F earnings per share dip by 7%/3% for Q&M Dental (SGX:QC7). No change in our earnings estimates for now.



PCR testing to be reserved for symptomatic patients

  • As announced by the Ministry of Health (MOH) on 9 Oct 2021, COVID-19 testing protocols have been streamlined for simplicity.
  • The nation will be relying more heavily on antigen rapid tests (ART) while reserving usage of polymerase chain reaction tests (PCR) for symptomatic patients.
  • Travellers flying to Singapore via vaccinated travel lanes (VTLs) will still need to take on-arrival and pre-departure PCR tests. At present, VTLs only exist with Germany and Brunei. Singapore is expanding VTLs to 9 other countries, with South Korea VTL starting from 15 Nov 2021 and the rest commencing on 19 Oct 2021.


New protocols to favour ART more; negative for PCR

  • The new MOH protocols cover 3 scenarios:
    1. symptomatic individuals w ho test ART-positive,
    2. asymptomatic individuals w ho test ART-positive,
    3. close contacts of a positive case.
  • These three groups of individuals are required to take an initial ART to determine COVID-19 infection.
  • Symptomatic individuals are expected to see a doctor to get an ART. PCR tests will be used at the discretion of doctors for patients displaying more severe symptoms.
  • Asymptomatic individuals will not be required by law to undergo a PCR test.
  • Previously, a confirmatory PCR test was needed for patients who tested ART-positive. Patients in home quarantine were also required to take a PCR test before exiting quarantine. These are now no longer required under the new protocols.


Dampener to Q&M’s testing revenue





Potential Catalysts:

more tests than expected, quicker Aoxin turnaround.
  • Downside risks include intensifying competitive pressure and lower-than-expected PCR demand.





  • Kenneth TAN CGS-CIMB Research | LIM Siew Khee CGS-CIMB Research | https://www.cgs-cimb.com 2021-10-11
    SGX Stock Analyst Report ADD MAINTAIN ADD 0.890 SAME 0.890



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