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

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 - 16 Apr 2019

Lucror Analytics - Morning Views Asia - 08 Apr 2019

In this month’s “In-Focus” section, we provide an update on the Chinese property sector, including contracted sales trends, regulatory actions and financing conditions. We also broadly comment on the FY 2018 results for developers 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 provide an update on the Chinese property sector, including contracted sales trends, regulatory actions and financing conditions. We also broadly comment on the FY 2018 results for developers 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 - China Property Update - Lucror Analytics

Central China’s FY 2018 results were satisfactory, thanks to the strong sales growth (+76% y-o-y) and improved gross margin (+10 ppts to 34%). Although revenue growth was slow (+7%), this was due to the adoption of new accounting measures under HKFRS 15. We expect revenue recognition to pick up. The overall credit profile weakened slightly, as the increase in debt outpaced earnings. Positively, recurring income was higher, and accounted for 8% of FY 2018 revenues. This partly mitigates the cyclicality risk associated with the development business. However, we are concerned about the high interest costs, with EBITDA/Interest coverage barely adequate at 1.1x. The majority of interest costs were capitalised.

   Central China’s FY 2018 results were satisfactory, thanks to the strong sales growth (+76% y-o-y) and improved gross margin (+10 ppts to 34%). Although revenue growth was slow (+7%), this was due to the adoption of new accounting measures under HKFRS 15. We expect revenue recognition to pick up.    The overall credit profile weakened slightly, as the increase in debt outpaced earnings. Positively, recurring income was higher, and accounted for 8% of FY 2018 revenues. This partly mitigates the cyclicality risk associated with the development business. However, we are concerned about the high interest costs, with EBITDA/Interest coverage barely adequate at 1.1x. The majority of interest costs were capitalised. 

Central China - Earnings Flash - FY 2018 Results - Lucror Analytics

The Asia HY Trade Recommendations report for March 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 March 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 - March 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)

Lucror Analytics - Morning Views Asia - 16 Apr 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 Apr 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 - China Property Update - Lucror Analytics

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

Lucror Analytics

Central China - Earnings Flash - FY 2018 Results - Lucror Analytics

Central China’s FY 2018 results were satisfactory, thanks to the strong sales growth (+76% y-o-y) and improved gross margin (+10 ppts to 34%)....

Lucror Analytics

Asia HY Trade Recommendations - March 2019 - Lucror Analytics

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

Lucror Analytics

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52-week Range

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