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

Longfor Group's FY 2023 results were acceptable in our view. The earnings decline was in line with expectations, driven by reduced revenue from the property development segment. The gross margin for property development was decent at 11%, relative to some distressed peers with negative to low single-digit gross margins. Recurring revenue from rentals and services rose by 6%, with recurring operating profit covering 1.4x of interest expense. Net debt declined marginally, supported by slightly positive FCF generation. Liquidity was adequate, with Unrestricted Cash/ST Debt of 1.4x. We note positively that the company has been repaying some debt well in advance of maturity, possibly using cheaper and longer tenor loans backed against its commercial properties. We believe near-term default risk for Longfor is low, albeit its financial flexibility would gradually diminish as the company pledges more assets for funding.

  Longfor Group's FY 2023 results were acceptable in our view. The earnings decline was in line with expectations, driven by reduced revenue from the property development segment. The gross margin for property development was decent at 11%, relative to some distressed peers with negative to low single-digit gross margins. Recurring revenue from rentals and services rose by 6%, with recurring operating profit covering 1.4x of interest expense. Net debt declined marginally, supported by slightly positive FCF generation.   Liquidity was adequate, with Unrestricted Cash/ST Debt of 1.4x. We note positively that the company has been repaying some debt well in advance of maturity, possibly using cheaper and longer tenor loans backed against its commercial properties. We believe near-term default risk for Longfor is low, albeit its financial flexibility would gradually diminish as the company pledges more assets for funding. 

Longfor Group - Earnings Flash - FY 2023 Results - Lucror Analytics

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China

Longfor Properties Co. Ltd. operates in the property development, property investment and property management businesses in China.

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Longfor Properties (960 HK)

Longfor Group - Earnings Flash - FY 2023 Results - Lucror Analytics

Longfor Group's FY 2023 results were acceptable in our view. The earnings decline was in line with expectations, driven by reduced revenue from...

Lucror Analytics

Morning Views Asia: Adani Green Energy, Azure Power Global Ltd, Greenko Energy Holdings

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region,...

Lucror Analytics

Morning Views Asia: China Jinmao Holdings, China Vanke , Pan Brothers

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region,...

Lucror Analytics

Morning Views Asia: Lippo Malls Indonesia Retail Trust

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region,...

Lucror Analytics

Morning Views Asia: Meituan

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region,...

Lucror Analytics

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