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

In this month’s “In-Focus” section, we look at key developments in the global oil & gas markets in 2018 and consider the 2019 outlook. We also review recent performance and prospects for the O&G issuers under our 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 look at key developments in the global oil & gas markets in 2018 and consider the 2019 outlook. We also review recent performance and prospects for the O&G issuers under our 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 - Oil & Gas Overview - Lucror Analytics

Adani Ports & Special Economic Zone / Credit

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.

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. 

Lucror Analytics - Morning Views Asia - 26 Feb 2019

Indian Accounting Research Analyst, Trudence Capital Advisors

Nitin Mangal

Indian Accounting Research Analyst

Thematic (Sector/Industry)

In 2009, when Satyam Computers case unraveled it was revealed that a large portion of promoter shares were pledged with lenders and a substantial portion of that was sold by lenders. Responding to the situation then the Market regulator Securities and Exchange Board of India (SEBI) asked all the listed companies in the country to make disclosures on shares pledged by promoters within seven days and also amended the relevant regulations for the same.

In 2009, when Satyam Computers case unraveled it was revealed that a large portion of promoter shares were pledged with lenders and a substantial portion of that was sold by lenders. Responding to the situation then the Market regulator Securities and Exchange Board of India (SEBI) asked all the listed companies in the country to make disclosures on shares pledged by promoters within seven days and also amended the relevant regulations for the same.

Silent Alarm: Promoters Flock To Pledge Shares

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 financial metrics. APSEZ has material related-party transactions, albeit these have decreased.  Our fundamental Credit Bias is “Stable”. The company should generate positive FCF in the absence of transformative acquisition plans. We view APSEZ as “Weak” on the LAGA scale. The company is effectively controlled by founder and Chairman Gautam Adani and his family. APSEZ also has a questionable environmental, social and governance track record. 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 financial metrics. APSEZ has material related-party transactions, albeit these have decreased.     Our fundamental Credit Bias is “Stable”. The company should generate positive FCF in the absence of transformative acquisition plans.    We view APSEZ as “Weak” on the LAGA scale. The company is effectively controlled by founder and Chairman Gautam Adani and his family. APSEZ also has a questionable environmental, social and governance track record. That said, major businesses within the Adani Group are listed, which improves corporate transparency. 

Adani Ports - Tear Sheet - Lucror Analytics

The Asia HY Trade Recommendations report for February includes a summary of our recommendations, as well as our high-conviction ideas. We also provide relative-value charts and lists of the bonds in the Lucror Asia HY index.

   The Asia HY Trade Recommendations report for February includes a summary of our recommendations, as well as our high-conviction ideas. We also provide relative-value charts and lists of the bonds in the Lucror Asia HY index. 

Asia HY Trade Recommendations - February 2019 - 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)

Asia HY Monthly - Oil & Gas Overview - Lucror Analytics

In this month’s “In-Focus” section, we look at key developments in the global oil & gas markets in 2018 and consider the 2019 outlook. We...

Lucror Analytics

Lucror Analytics - Morning Views Asia - 26 Feb 2019

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

Lucror Analytics

Silent Alarm: Promoters Flock To Pledge Shares

In 2009, when Satyam Computers case unraveled it was revealed that a large portion of promoter shares were pledged with lenders and a substantial...

Nitin Mangal

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 Recommendations - February 2019 - Lucror Analytics

The Asia HY Trade Recommendations report for February includes a summary of our recommendations, as well as our high-conviction ideas. We also...

Lucror Analytics

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)