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

Central China’s H1/19 results were satisfactory, thanks to moderate growth in gross profit (+44% y-o-y) and EBITDA (+27%). The overall financial profile weakened marginally, with higher debt partly compensated by earnings growth. We remain concerned about the very high interest costs, which were partly due to capitalised interest accrued on customer advances. This has the effect of inflating liabilities and revenue. During H1/19, the company’s attributable land spending increased 51% y-o-y to CNY 9.8 bn. We are surprised by the significantly higher average cost of land (which doubled to CNY 2.2 k per sqm). This was skewed by three Zhengzhou plots acquired at very high prices (CNY 15-16 k per sqm) through auctions. The expensive land costs may not translate into higher ASP, owing to housing purchase restrictions and price caps.

   Central China’s H1/19 results were satisfactory, thanks to moderate growth in gross profit (+44% y-o-y) and EBITDA (+27%). The overall financial profile weakened marginally, with higher debt partly compensated by earnings growth. We remain concerned about the very high interest costs, which were partly due to capitalised interest accrued on customer advances. This has the effect of inflating liabilities and revenue.    During H1/19, the company’s attributable land spending increased 51% y-o-y to CNY 9.8 bn. We are surprised by the significantly higher average cost of land (which doubled to CNY 2.2 k per sqm). This was skewed by three Zhengzhou plots acquired at very high prices (CNY 15-16 k per sqm) through auctions. The expensive land costs may not translate into higher ASP, owing to housing purchase restrictions and price caps. 

Central China - Earnings Flash - H1 FY 2019 Results - Lucror Analytics

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 - 21 Aug 2019

Lucror Analytics - Morning Views Asia - 08 Aug 2019

In this month’s “In-Focus” section, we provide an update on the Indonesian real estate sector, including the background of the last cycle, sales trends, regulatory actions and expectations. We also comment broadly on the FY 2018 and Q1/19 results of real estate companies under our coverage.

   In this month’s “In-Focus” section, we provide an update on the Indonesian real estate sector, including the background of the last cycle, sales trends, regulatory actions and expectations. We also comment broadly on the FY 2018 and Q1/19 results of real estate companies under our coverage. 

Asia HY Monthly - Indonesian Property Update (2019) - Lucror Analytics

The Asia HY Trade Recommendations report for July 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 July 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 - July 2019 - Lucror Analytics

China

Central China Real Estate Ltd. develops property in the Peoples Republic of China.

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Central China Real Estate (832 HK)

Central China - Earnings Flash - H1 FY 2019 Results - Lucror Analytics

Central China’s H1/19 results were satisfactory, thanks to moderate growth in gross profit (+44% y-o-y) and EBITDA (+27%). The overall financial...

Lucror Analytics

Lucror Analytics - Morning Views Asia - 21 Aug 2019

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

Lucror Analytics

Lucror Analytics - Morning Views Asia - 08 Aug 2019

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

Lucror Analytics

Asia HY Monthly - Indonesian Property Update (2019) - Lucror Analytics

In this month’s “In-Focus” section, we provide an update on the Indonesian real estate sector, including the background of the last cycle, sales...

Lucror Analytics

Asia HY Trade Recommendations - July 2019 - Lucror Analytics

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

Lucror Analytics

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