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

Adani Ports & Special Economic Zone / Credit

We view Adani Ports and Special Economic Zone (APSEZ) as "Low Risk" on the LARA scale. This is supported by the company’s: (1) established position as the largest independent port operator in India; (2) diversification in terms of cargo type and business segments; and (3) relatively stable margins and cash-flow generation. The main risks revolve around its related-party transactions (albeit these have decreased), high level of promoter share pledges, as well as aggressive expansion appetite. Our fundamental Credit Bias on APSEZ is "Stable", as the COVID-19 impact on its earnings has been modest. We expect the company to achieve further earnings growth, supported by contributions from newly acquired assets. That said, leverage is likely to remain at a moderate level, owing to continued debt-funded acquisitions. We view APSEZ as "Weak" on the LAGA scale. The company is effectively controlled by founder and Chairman Gautam Adani and his family. It also has a history of related-party transactions. That said, major businesses within the Adani Group are listed, which improves corporate transparency.

  We view Adani Ports and Special Economic Zone (APSEZ) as "Low Risk" on the LARA scale. This is supported by the company’s: (1) established position as the largest independent port operator in India; (2) diversification in terms of cargo type and business segments; and (3) relatively stable margins and cash-flow generation. The main risks revolve around its related-party transactions (albeit these have decreased), high level of promoter share pledges, as well as aggressive expansion appetite.   Our fundamental Credit Bias on APSEZ is "Stable", as the COVID-19 impact on its earnings has been modest. We expect the company to achieve further earnings growth, supported by contributions from newly acquired assets. That said, leverage is likely to remain at a moderate level, owing to continued debt-funded acquisitions.   We view APSEZ as "Weak" on the LAGA scale. The company is effectively controlled by founder and Chairman Gautam Adani and his family. It also has a history of related-party transactions. That said, major businesses within the Adani Group are listed, which improves corporate transparency. 

Adani Ports - Tear Sheet - Lucror Analytics

The Asia HY Trade Book for the month of April includes a summary of our recommendations, as well as our high-conviction ideas. The report also features relative-value charts and lists of the bonds in the Lucror Asia HY index.

  The Asia HY Trade Book for the month of April includes a summary of our recommendations, as well as our high-conviction ideas. The report also features relative-value charts and lists of the bonds in the Lucror Asia HY index. 

Asia HY Trade Book - April 2021 - Lucror Analytics

In this month’s “In-Focus” section, we provide an update on the Chinese property sector, including operational trends and regulatory developments, as well as an overview of the FY 2020 results of most developers under our full coverage. The Asia Monthly focuses on providing updates on recent events, information on new issues and spread movements, as well as summarising our top picks, and discussing specific areas of interest in the “In-Focus” section. The Asia Monthly is intended to broaden investors' understanding of the Asian USD high-yield market.

  In this month’s “In-Focus” section, we provide an update on the Chinese property sector, including operational trends and regulatory developments, as well as an overview of the FY 2020 results of most developers under our full coverage.   The Asia Monthly focuses on providing updates on recent events, information on new issues and spread movements, as well as summarising our top picks, and discussing specific areas of interest in the “In-Focus” section. The Asia Monthly is intended to broaden investors' understanding of the Asian USD high-yield market. 

Asia HY Monthly - Chinese Property Update (2021) - Lucror Analytics

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

On 29 May 2020, the promoters of <a href="https://www.smartkarma.com/entities/adani-power-ltd" target="_blank" data-smartkarma-citation="entities:247:1" rel="noopener">Adani Power Ltd (ADANI IN)</a> announced a proposed Delisting Offer. It was duly put to the board, approved, then put to shareholders, and shareholders approved the move to allow progress on the Delisting Offer and concomitant Reverse Book Build auction. 
The deadline for the company to apply to the Stock Exchange for In-Principle Approval of Delisting is one year from the shareholder approval (23 July 2020). That leaves plenty of time. 
The Indicative Price for the Delisting Offer was Rs. 33.85/share. Yesterday, the stock fell by the limit and closed at nearly three times that price at Rs. 99.15/share. 
There isn't much coverage, but there doesn't need to be. It is not really going up because of fundamentals as far as I can tell. 
The shareholder movement in calendar Q4 last year was instructive.

On 29 May 2020, the promoters of Adani Power Ltd (ADANI IN) announced a proposed Delisting Offer. It was duly put to the board, approved, then put to shareholders, and shareholders approved the move to allow progress on the Delisting Offer and concomitant Reverse Book Build auction. 
The deadline for the company to apply to the Stock Exchange for In-Principle Approval of Delisting is one year from the shareholder approval (23 July 2020). That leaves plenty of time. 
The Indicative Price for the Delisting Offer was Rs. 33.85/share. Yesterday, the stock fell by the limit and closed at nearly three times that price at Rs. 99.15/share. 
There isn't much coverage, but there doesn't need to be. It is not really going up because of fundamentals as far as I can tell. 
The shareholder movement in calendar Q4 last year was instructive. 

In this month's “In-Focus”, we update our study of agency ratings for Asian issuers, analysing ratings transitions for all issuers in the Lucror Asia HY index between January 2014 and the present. The Asia Monthly focuses on providing updates on recent events, information on new issues and spread movements, as well as summarising our top picks and discussing specific areas of interest in the “In-Focus” section. The Asia Monthly is intended to broaden investors' understanding of the Asian USD high-yield market.

  In this month's “In-Focus”, we update our study of agency ratings for Asian issuers, analysing ratings transitions for all issuers in the Lucror Asia HY index between January 2014 and the present.   The Asia Monthly focuses on providing updates on recent events, information on new issues and spread movements, as well as summarising our top picks and discussing specific areas of interest in the “In-Focus” section. The Asia Monthly is intended to broaden investors' understanding of the Asian USD high-yield market.  

Asia HY Monthly - Asian HY Ratings Transition Study - Lucror Analytics

India

Adani Ports and Special Economic Zone operates a shipping port on the west coast of India.  The Company's port provides services for bulk and container cargo, crude oil, and railway and other added services.

Adani Ports & Special Economic Zone (ADSEZ IN)

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Adani Ports & Special Economic Zone (ADSEZ IN)

Adani Ports - Tear Sheet - Lucror Analytics

We view Adani Ports and Special Economic Zone (APSEZ) as "Low Risk" on the LARA scale. This is supported by the company’s: (1) established...

Lucror Analytics

Asia HY Trade Book - April 2021 - Lucror Analytics

The Asia HY Trade Book for the month of April includes a summary of our recommendations, as well as our high-conviction ideas. The report also...

Lucror Analytics

Asia HY Monthly - Chinese Property Update (2021) - Lucror Analytics

In this month’s “In-Focus” section, we provide an update on the Chinese property sector, including operational trends and regulatory...

Lucror Analytics

Adani Power: How Much Is Too Much?

Adani Power is +99%ytd after spiking nearly 60% in early Dec20 and falling back 20%. Volumes are much higher than share ownership changes. There is...

Travis Lundy

Asia HY Monthly - Asian HY Ratings Transition Study - Lucror Analytics

In this month's “In-Focus”, we update our study of agency ratings for Asian issuers, analysing ratings transitions for all issuers in the Lucror...

Lucror Analytics

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