Senior Credit Analyst, Lucror Analytics

Leonard Law, CFA

Senior Credit Analyst

High Yield Experts

Lucror Analytics

Lucror Analytics is a leading credit and ESG research specialist and a provider of technology solutions for differentiated fixed income strategies. Our roots are in bottom-up fundamental credit analysis with a specialization in high yield corporate credits from Europe, Asia and Latin America. We are one of few research specialists integrating ESG considerations with fundamental credit research through a dedicated ESG platform. Our ESG assessment covers five key criteria: Disclosure, E,S, & G Pillars, Controversies, ESG Impact on Credit and ESG Momentum.

Recognizing the importance and value-add of Factor Investing in fixed income, Lucror developed the Smart Quant Navigator (SQN), an intuitive platform that helps clients devise and implement factor-based strategies ranging from pure quant to active fundamental, with integrated ESG.

Our company has been at the forefront of developments in the fixed income markets, identifying opportunities and consistently delivering new products and value-adding solutions to clients. Lucror has close relationships with the largest and most reputable asset managers, family offices, hedge funds, investment and wealth managers globally.

Credit

Sino-Ocean Group Holding Limited operates as a real estate holding company. The Company develops residential, office, and commercial real estate in the northern People's Republic of China.

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.<ul><li><a href='#lucror-entity-28672'>Powerlong Commercial Management Holdings</a></li><li><a href='#lucror-entity-198'>Reliance Industries</a></li><li><a href='#lucror-entity-31037'>Sino-Ocean Service</a></li></ul>

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 HoldingsReliance IndustriesSino-Ocean Service

Morning Views Asia: Powerlong Commercial Management Holdings, Reliance Industries, Sino-Ocean Service

International Container Terminal Services, Inc. provides containerized cargo handling services. The Company also manages and operates the Manila International Container Terminal and port.

We view International Container (ICTSI) as "Low Risk" on the LARA scale. This reflects the company's: [1] leading position in Philippine container terminal operations; [2] geographically diversified operations, with port terminal assets across 19 countries; and [3] sound business capability to execute its expansion plans, as evidenced by its track record of healthy revenue growth and margin expansion. These are balanced against the risks associated with: [1] a potential increase in competitive pressures in the container shipping industry; [2] the Port of Manila's small scale (in terms of annual throughput) compared to major ports worldwide; and [3] exposure to political and event risks arising from the company's operations in frontier markets. Our fundamental Credit Bias on ICTSI is "Stable". The company’s leverage has improved over the years, supported by earnings growth and strong OCF generation. That said, FCF may be tempered by high capex and dividend payouts. Controversies are "Material". In 2017, ICTSI was accused by the International Transport Workers Federation (ITF) of violating various labour rights. This included the illegal sacking of outsourced workers at its Madagascar terminal, paying “poverty wages” at the company’s terminals in Indonesia and Madagascar, discrimination against unionised workers, as well as safety breaches at various terminals. The ITF also accused ICTSI of profiting off dictatorships, by working with authoritarian governments in Sudan, Syria and the Democratic Republic of Congo. In March 2023, the Organised Crime and Corruption Reporting Project accused the company of bribing two officials from the PNG Ports Corporation in relation to concession awards for its terminals in Papua New Guinea. That said, ICTSI does not appear to be materially impacted by the controversies. Overall, the ESG Impact on Credit is “Neutral”.

  We view International Container (ICTSI) as "Low Risk" on the LARA scale. This reflects the company's: [1] leading position in Philippine container terminal operations; [2] geographically diversified operations, with port terminal assets across 19 countries; and [3] sound business capability to execute its expansion plans, as evidenced by its track record of healthy revenue growth and margin expansion. These are balanced against the risks associated with: [1] a potential increase in competitive pressures in the container shipping industry; [2] the Port of Manila's small scale (in terms of annual throughput) compared to major ports worldwide; and [3] exposure to political and event risks arising from the company's operations in frontier markets.   Our fundamental Credit Bias on ICTSI is "Stable". The company’s leverage has improved over the years, supported by earnings growth and strong OCF generation. That said, FCF may be tempered by high capex and dividend payouts.   Controversies are "Material". In 2017, ICTSI was accused by the International Transport Workers Federation (ITF) of violating various labour rights. This included the illegal sacking of outsourced workers at its Madagascar terminal, paying “poverty wages” at the company’s terminals in Indonesia and Madagascar, discrimination against unionised workers, as well as safety breaches at various terminals. The ITF also accused ICTSI of profiting off dictatorships, by working with authoritarian governments in Sudan, Syria and the Democratic Republic of Congo. In March 2023, the Organised Crime and Corruption Reporting Project accused the company of bribing two officials from the PNG Ports Corporation in relation to concession awards for its terminals in Papua New Guinea. That said, ICTSI does not appear to be materially impacted by the controversies. Overall, the ESG Impact on Credit is “Neutral”. 

International Container - Tear Sheet - Lucror Analytics

Lucror Analytics' ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable). We assess International Container's ESG as "Adequate", in line with its Environmental, Social and Governance scores. Controversies are "Immaterial" and Disclosure is "Adequate".

Lucror Analytics' ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).  We assess International Container's ESG as "Adequate", in line with its Environmental, Social and Governance scores. Controversies are "Immaterial" and Disclosure is "Adequate".  

International Container - ESG Report - Lucror Analytics

Health and Happiness H&H International Holdings Ltd provides health care supplements. The Company offers pediatric nutritional and baby care products. Health and Happiness H&H International Holdings serves nutrition and wellness industries worldwide.

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.<ul><li><a href='#lucror-entity-13022'>Anton Oilfield</a></li><li><a href='#lucror-entity-20582'>Health And Happiness (H&H)</a></li><li><a href='#lucror-entity-22202'>Vedanta Resources</a></li></ul>

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.Anton OilfieldHealth And Happiness (H&H)Vedanta Resources

Morning Views Asia: Anton Oilfield, Health And Happiness (H&H), Vedanta Resources

Xiaomi Corporation manufactures communication equipment and parts. The Company produces and sells mobile phones, smart phone software,  set-top boxes, and related accessories. Xiaomi markets its products worldwide.

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.<ul><li><a href='#lucror-entity-20015'>SM Investments</a></li><li><a href='#lucror-entity-24409'>Xiaomi Corp</a></li></ul>

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.SM InvestmentsXiaomi Corp

Morning Views Asia: SM Investments, Xiaomi Corp