5 Things To Know About Quantum Healthcare (SGX Code: V8Y), A Local Dental Healthcare Provider

A visit to the dentist is something I have always scheduled at least once a year, if not twice. Though it’s not the most enjoyable or comfortable experience that I can have for those 20 minutes, I do it anyways as I believe in the importance of maintaining my dental health.

Fortunately, whether it’s for emergency care or just routine maintenance, we can get access to quality dental care treatment from any of the government-run or 862 private dental clinics in Singapore as of 2020. Amongst which, Asia Healthcare Dental Centre, St Andrew’s Dental Surgeons, and Eastern Dental Surgery Clinic are part of the seven private dental clinics that Quantum Healthcare owns in Singapore.

Established in 2005, QT Vascular was renamed to Quantum Healthcare (SGX: V8Y) in July 2022 upon its restructuring into three new business segments. They are the Healthcare Business, Medical Equipment Business, and the Medical Wellness Business. While still retaining its main focus on its dental healthcare services, Quantum Healthcare expects to tap on new business opportunities in the other segments for long-term growth and recurrent revenue streams.

Here are 5 things about Quantum Healthcare if you are interested in the local dental healthcare business.

Read Also:  5 Things To Know About Q&M Dental (SGX: QC7), Singapore’s Largest Private Dental Healthcare Group

For investors new to the company, what does Quantum Healthcare do?

Quantum Healthcare is a healthcare company that strategically leverages our resources and experience in the specific fields of healthcare, from dental services, medical equipment, wellness services to research and development. Our recent internal restructuring and diversification into the healthcare business aims to bolster long-term growth of our 3 core business units:

Healthcare Business

Provision of dental services, as well as operations management and consultancy services to certain government entities and/or corporate clients.

Medical Equipment Business

Research, develop and design of medical equipment and other related products including but not limited to geriatric medical rehabilitation equipment and medical equipment for use in hospitals as well as for emergency and rescue (Medical Equipment); and engage in the trading, manufacturing, distributing and/or marketing of these Medical Equipment.

Medical and Wellness Business

Provision of all-inclusive medical care that extends beyond the realms of aesthetics and wellness.

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Following the completion of the restructuring, what are some key considerations when it comes to investing in new business opportunities and partnerships in the future?

Our future direction is to focus on our new businesses and be an ASEAN leader in the healthcare space across the 3 new core businesses, and to always keep a look out for good companies to acquire and grow the overall business. This will ensure greater ease and flexibility in positioning ourself to expand and/or divest existing business segments, explore investment opportunities, new businesses and business partnerships should any good opportunities arise.

In the near term, our priority is to monitor and grow the dental healthcare business in Singapore whilst also keeping a look out for potential new strategic business acquisitions and partnerships. Key considerations for investment in new business opportunities and partnerships include, but not limited to the following:

• business and profitability track record of the potential opportunity;
• involvement of key management of the new potential business in the future; and
• future outlook and growth potential of the new business opportunity and partnership.

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How would you describe Quantum Healthcare’s competitive edge in the healthcare business?

We foresee strong competition by healthcare companies in the region, However, we believe that with the broader scope of core business activities we have entered or intend to enter into, the Group will be well positioned to minimize its risks by not focusing solely in one particular segment of the healthcare market.

In addition, we provide a multi-disciplinary and assessable dental healthcare through our diverse range of products and services and our management team specializes in identifying accretive acquisition opportunities, to provide good return to our shareholders.

We place emphasis on a foundation for a superior and cutting-edge healthcare through our rigorous research and experimental development in medical science and biotechnology, which allows for our innovations to remain revolutionary and purposeful on the back of our desire for progressive evolvement in research & development.

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What are some potential risks ahead and how is the company managing them?

In the near term, the following risks may arise which can affect Quantum Healthcare’s financial performance:

• ability to continue obtaining financing (through equity/bank loans) to support the Group’s overall growth;
• increasing operational costs which will have an impact on overall profitability of company’s healthcare business; and
• slowdown in the global economy arising from COVID-19 and the Russia-Ukraine war which negatively affects overall business sentiments in the market.

To manage these risks, we intend to:

• maintain and build existing and new banking relationships with financial institutions;
• tap on the Singapore government’s new budget measures such as the “Enterprise Financing Scheme” and “Temporary Bridging Loan Programme” for the purpose of mergers and acquisitions and working capital respectively; and
• maintain a Board of Directors with diversified skills and industry experience and streamline the Group’s operations for potential cost savings in the long-term.

COVID-19 has changed the way companies hire, manage and communicate with their employees. How has Quantum Healthcare adapted to this in the #NewNormal environment we are in today?

The Company has adopted to the #NewNormal environment we are in today by:

1. staying nimble, lean and focussed on the strategy and plans we have set out to achieve;
2. allowing flexibility for our employees in the performance of their work;
3. maintain constant communication with our employees to address any concerns that they have; and
4. working closely with our employees to address the challenges that they are facing.

Editor’s Note: Some answers for this article were extracted from the SGX 10 in 10 series published on 27 September 2022 and have been republished with permission. You can read more on the SGX website.

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