Q & M Dental Group lauded as Best Investor Relations at the 2023 Singapore Corporate Awards Ceremony

ShareInvestor’s Wayne Koo and Derek Yeo photo opportunity with Q&M CFO Melanie Ng holding the Best Investor Relations Gold Trophy Award

Why effective investor relations is crucial for small and mid-cap companies?

On 7th September 2023, Q & M Dental Group Limited (Q&M) (Stock Symbol QC7.SI) received the prestigious Best Investor Relations Award (Gold) for mid-cap stocks of S$300 million to S$1 billion at the 18th Singapore Corporate Awards ceremony. The Award is given in recognition of Q&M Dental Group's commitment to maintaining transparency, communication, and excellence in investor relations.

Singapore Corporate Awards (SCA) is jointly organised by the Institute of Singapore Chartered Accountants (ISCA), the Singapore Institute of Directors (SID), and The Business Times (BT). The SCA was launched in 2005 as the umbrella award for exemplary corporate governance practices for listed companies in Singapore. It seeks to consolidate existing awards while introducing new awards in the area of excellent corporate governance.

The Best Investor Relations Award aims to recognise companies that embody the spirit of good corporate governance and corporate transparency by adopting and implementing best practices in investor relations.

CFO Melanie Ng received an award from Chen Hui Fen, The Business Times Editor


"Winning the SCA Best Investor Relations Award (Gold) is a testament to our unwavering commitment to uphold the highest standards in investor relations. We believe in the principles of transparency, open communication, and ethical conduct. Our dedicated Finance and Investor Relations team works tirelessly to provide timely and accurate financial reporting, maintain regular communication through various channels, and ensure compliance with all regulatory requirements. For us, this award is not so much a final destination but a responsibility to continue setting benchmarks in investor relations."

Dr Ng Chin Siau, Group Chief Executive Officer of Q & M

Q&M’s Investor Relations and Finance Team at the SCA event


Why effective investor relations is crucial for small and mid-cap companies?

Having an effective investor relations team is crucial for small and mid-cap companies.

There are two main reasons for this:

  • Unlike blue-chips and index component stocks, the stocks of small and mid-cap companies receive less coverage by the media as well as from buy-side research analysts and sell-side brokerages.
    This gives them less opportunities to disseminate and update important information on their business and their investment merits- not only to their shareholders but also to potential investors. The consequences of this are low trading liquidity and low valuations for the stock. For investors the consequence is that they may be missing out on undiscovered gems. An effective investor relations strategy is able to deploy many tools to communicate the investment merits of a stock including non-deal roadshows, investment forums, interviews with C-suite, and site visits.
  • The age of Artificial Intelligence or AI and social media also brings with it the age of information overload and misinformation. This poses a problem for the investor; on how to sieve the truth, from the fake and the important, from the trivial. When a company has an effective investor relations team, the investor knows he is getting the information “straight from the horse’s mouth”, so to speak.

We also tend to forget that whether consciously or unconsciously, real or imagined, investors hold certain positive or negative ‘perceptions’ about a stock, its business, its financials, its Board and Management, and the stock’s trading ‘behaviour’.

Negative perceptions often leads to speculative trading and unwanted volatility. Effective investor relations go a long way to build and maintain a positive perception of the stock to investors based on its fundamentals.

"Today’s investors rely not only on the mainstream media for their information but also on many other online and offline channels. While this is good for them, this flood of information also carries with it the risk of misinformation when the source of the information is not credible.
However, the ShareInvestor Group has an established track record of over 20 years in the investment community. Its trusted online channels include ShareInvestor.com, Investor-One, Invest e-magazine, InvestingNote, and social media like LinkedIn and Facebook. Offline channels include events such as InvestFair, SG30Gems, REITs Symposium, and Corporate-Access meetings."

Mr Wayne Koo, Managing Director of Waterbrooks Consultants and concurrent Senior Director (Business Development) of ShareInvestor Group, Investor Relations partner for Q & M


Best practices for effective investor relations

Transparency and Disclosure

  1. Financial Reporting: Companies should provide accurate, timely, and comprehensive financial statements. This includes quarterly and annual reports, as well as any material changes affecting the company.
  2. Regulatory Compliance: Adherence to regulations such as the Sarbanes-Oxley Act in the U.S. or the Financial Services and Markets Act in the U.K. is essential.
  3. Information Sharing: Any information that could potentially impact an investor's decision should be disclosed in a transparent manner.

Communication

  1. Regular Updates: Companies should maintain regular communication with investors through various channels like press releases, investor meetings, and social media.
  2. Clarity and Consistency: Messages should be clear, consistent, and aligned with the company’s strategic objectives.
  3. Two-Way Dialogue: Open channels for feedback from investors can provide valuable insights.

Credibility and Trust

  1. Management Accessibility: Top management should be accessible to investors, as this builds credibility.
  2. Honesty: Even when the news is not favorable, honesty is crucial for maintaining long-term relationships.
  3. Expertise: The IR team should have a deep understanding of the financial markets, as well as the company's industry.

Strategic Planning

  1. Long-Term Vision: Companies should communicate a compelling long-term vision and strategy.
  2. Risk Management: Clearly outline the risks involved and the steps taken to mitigate them.
  3. Competitive Positioning: Provide a clear picture of the company's position relative to competitors.

Technology Utilization

  1. IR Website: A dedicated section on the company’s website for investor relations is considered best practice. Eg ShareInvestor IR website hosting services
  2. Data Analytics: Utilize data analytics tools to gauge investor sentiment and tailor communication strategies accordingly. Eg ShareInvestor Station or Webpro

Global Considerations

  1. Cultural Sensitivity: For companies with a global investor base, cultural nuances should be considered in communication strategies.
  2. Regulatory Awareness: Be aware of and comply with the financial regulations of the countries where the investors are based.

Ethical Conduct

  1. Insider Trading: Strict measures should be in place to prevent insider trading.
  2. Conflict of Interest: Disclose any potential conflicts of interest transparently.

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