China: China High Speed Transmission Equip Grp, Arrail Group, Weibo Corp, Dragon Crown Group, Powerlong Real Estate Holdings, Provident Acquisition Corp and more

• Sold off in the market rout as it is a small-cap stock although growth potential is intact. 
• Margin decreased but revenue increased followed by lower expenses to sales ratio. 
• China High Speed Transmission Equip Grp (658 HK) build-up in inventories and increase in the account receivables reflect management’s confidence and action to prepare for a higher revenue growth.

• Arrail is a leading dental service provider in China. The company is looking to raise up to USD100m via a Hong Kong listing.
• In our previous note, we looked at the company’s background, its operation, its financials, and its expansion plan.
• In this note, we compare the key metric with its peer and provide our thoughts on the valuation.

• Weibo Corp (WB US) reported a set of solid results for 4Q21; ad revenue (excluding Alibaba) has post robust 28% year-over-year growth and MAU remains healthy.
• Weibo is leveraging its competences to increase user engagement. Weibo video account has amassed 25mn users; Weibo Live’s DAU has grown 100% year-over-year.
• Weibo current valuation 10x forward P/E looks attractive; we expect 1Q22 user engagement will improve given that topics on Winter Olympics has already exceeded Toyko Olympics.

• The Composite Document detailing the Conditional Voluntary General Offer for liquid chemical storage and handling outfit Dragon Crown Group (935 HK) (DCG) is now out.
• The Offer Price is HK$1.28/share. The Offer is conditional on 90% acceptance, with 86.91% in the bag.
• This will probably turn unconditional next week. Trading tight to term. 

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

• Powerlong Commercial Management Holdings

• Provident Acquisition Corp. (PAQC) & Perfect Corp. (Valuation: $1.02B EV)
• FTAC Athena Acquisition (FTAA) and Pico’s business combination agreement was terminated
• Caravelle, “a global carbon-neutral ocean-going technology company”, has signed a letter of intent with Pacifico Acquisition Corp. (PAFO) on 12/31, apparently