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

<p>Lucror Analytics Weekly Wraps provide an overview of all Morning Views comments and reports published by our analyst team in the past week, and also showcase a list of the most-read reports.</p>In this Insight:<ol><li><a href='/entities/china-evergrande-group' target='_blank' rel='noopener'>Evergrande</a></li><li><a href='/entities/china-sce-group-holdings-ltd' target='_blank' rel='noopener'>China SCE</a></li><li><a href='/entities/sunac-china-holdings-ltd' target='_blank' rel='noopener'>Sunac China Holdings</a></li><li><a href='/entities/fantasia-holdings-group-co' target='_blank' rel='noopener'>Fantasia Holdings Group Co</a></li><li><a href='/entities/country-garden-holdings-co' target='_blank' rel='noopener'>Country Garden Holdings Co</a></li></ol>and more...

Lucror Analytics Weekly Wraps provide an overview of all Morning Views comments and reports published by our analyst team in the past week, and also showcase a list of the most-read reports.In this Insight:EvergrandeChina SCESunac China HoldingsFantasia Holdings Group CoCountry Garden Holdings Coand more...

CEO, A. Stotz Investment Research

Dr. Andrew Stotz, CFA

Quantamental Investing to beat Benchmarks

A. Stotz Investment Research

We pick stocks. We construct portfolios. All our effort is focused on how to better pick stocks and construct portfolios. We serve fund management companies, family offices, and high net worth individuals.

Thematic (Sector/Industry)

<ul>
<li>We highlight 14 stocks in Thailand that look interesting to us based upon our FVMR Methodology</li>
<li>Portfolio changes: Five stocks remain, nine new join the fray</li>
<li>Since inception, the portfolio has gained 170% versus MSCI ASEAN’s 23%</li>
</ul>


We highlight 14 stocks in Thailand that look interesting to us based upon our FVMR Methodology
Portfolio changes: Five stocks remain, nine new join the fray
Since inception, the portfolio has gained 170% versus MSCI ASEAN’s 23%


<p>Lucror Analytics Weekly Wraps provide an overview of all Morning Views comments and reports published by our analyst team in the past week, and also showcase a list of the most-read reports.</p>In this Insight:<ol><li><a href='/entities/tata-motors-ltd' target='_blank' rel='noopener'>Tata Motors Ltd</a></li><li><a href='/entities/anton-oilfield-services-gp' target='_blank' rel='noopener'>Anton Oilfield</a></li><li><a href='/entities/china-south-city-holdings' target='_blank' rel='noopener'>China South City</a></li><li><a href='/entities/panda-green-energy-group-ltd' target='_blank' rel='noopener'>Panda Green</a></li><li><a href='/entities/gcl-new-energy-holdings-ltd' target='_blank' rel='noopener'>Gcl New Energy Holdings</a></li></ol>and more...

Lucror Analytics Weekly Wraps provide an overview of all Morning Views comments and reports published by our analyst team in the past week, and also showcase a list of the most-read reports.In this Insight:Tata Motors LtdAnton OilfieldChina South CityPanda GreenGcl New Energy Holdingsand more...

ASEAN Insight Provider, CrossASEAN Research

Angus Mackintosh

ASEAN Insight Provider

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Equity Bottom-Up

Bank Negara Indonesia Persero / Equity Bottom-Up

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<p><a href="https://www.smartkarma.com/entities/bank-negara-indonesia-persero" target="_blank" data-smartkarma-citation="entities:8285:1" rel="noopener">Bank Negara Indonesia (BBNI IJ)</a> released 3Q2021 results this week, which presented a mixed bag due to the onset of a new wave of COVID-19 and subsequent Emergency PPKM measures, which slowed business activity at least in July and August, with some recovery in September.</p>
<p>Despite the more restrictive economic backdrop, the bank still managed to grow its loans with a focus on lower-risk sectors both in corporate and consumer lending. Its digital efforts continue to yield positive results, both for consumer and wholesale banking, and we see more to come in the coming months. </p>
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<p>The bank grew its loans QoQ bringing 9M2021 loan growth to +3.7% YoY and it grew its third-party funds by +3.4% QoQ in 3Q2021. The cost of funds in 3Q2021 was the lowest ever at 1.54%, down by -10bps QoQ. </p>
<p>The bank's PPOP (pre-provisioning operating profit) increased by +21% YoY for 9M2021, whilst its net profit was up by +79.3% YoY and +5.0% QoQ in 3Q2021, mainly due to an -18% decline in the bank's provisioning in 3Q2021. </p>
<p><a href="https://www.smartkarma.com/entities/bank-negara-indonesia-persero" target="_blank" data-smartkarma-citation="entities:8285:1" rel="noopener">Bank Negara Indonesia (BBNI IJ)</a> continued to focus on growing its loan portfolio, with a focus on low-risk areas such as top tier corporates but also lower risk consumer loans.</p>
<p><a href="https://www.smartkarma.com/entities/bank-negara-indonesia-persero" target="_blank" data-smartkarma-citation="entities:8285:1" rel="noopener">Bank Negara Indonesia (BBNI IJ)</a> continues to focus on its ongoing digital transformation, both digitalising its own internal platform as well as developing digital native products.</p>
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<p>One key change in the bank's strategy and the fourth leg to its digital strategy is its move toward setting up a stand along the digital bank.</p>
<p><a href="https://www.smartkarma.com/entities/bank-negara-indonesia-persero" target="_blank" data-smartkarma-citation="entities:8285:1" rel="noopener">Bank Negara Indonesia (BBNI IJ)</a> continues to capitalise on the Fintech boom through collaboration with e-commerce players including <a href="https://www.smartkarma.com/entities/traveloka-indonesia-pt" target="_blank" data-smartkarma-citation="entities:32155:1" rel="noopener">Traveloka</a> and Shopee on BNPL</p>
<p>In a landmark deal, <a href="https://www.smartkarma.com/entities/bank-negara-indonesia-persero" target="_blank" data-smartkarma-citation="entities:8285:1" rel="noopener">Bank Negara Indonesia (BBNI IJ)</a> has issued Indonesia's first AT1 Perpetual Bond, meaning that a future rights issue will likely be more moderate.</p>
<p><a href="https://www.smartkarma.com/entities/bank-negara-indonesia-persero" target="_blank" data-smartkarma-citation="entities:8285:1" rel="noopener">Bank Negara Indonesia (BBNI IJ</a>) is often seen as the bank playing catch up with its peers but maybe this time is different and it may finally be ripe for a re-rating.</p>
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Bank Negara Indonesia (BBNI IJ) released 3Q2021 results this week, which presented a mixed bag due to the onset of a new wave of COVID-19 and subsequent Emergency PPKM measures, which slowed business activity at least in July and August, with some recovery in September.
Despite the more restrictive economic backdrop, the bank still managed to grow its loans with a focus on lower-risk sectors both in corporate and consumer lending. Its digital efforts continue to yield positive results, both for consumer and wholesale banking, and we see more to come in the coming months. 

The bank grew its loans QoQ bringing 9M2021 loan growth to +3.7% YoY and it grew its third-party funds by +3.4% QoQ in 3Q2021. The cost of funds in 3Q2021 was the lowest ever at 1.54%, down by -10bps QoQ. 
The bank's PPOP (pre-provisioning operating profit) increased by +21% YoY for 9M2021, whilst its net profit was up by +79.3% YoY and +5.0% QoQ in 3Q2021, mainly due to an -18% decline in the bank's provisioning in 3Q2021. 
Bank Negara Indonesia (BBNI IJ) continued to focus on growing its loan portfolio, with a focus on low-risk areas such as top tier corporates but also lower risk consumer loans.
Bank Negara Indonesia (BBNI IJ) continues to focus on its ongoing digital transformation, both digitalising its own internal platform as well as developing digital native products.



One key change in the bank's strategy and the fourth leg to its digital strategy is its move toward setting up a stand along the digital bank.
Bank Negara Indonesia (BBNI IJ) continues to capitalise on the Fintech boom through collaboration with e-commerce players including Traveloka and Shopee on BNPL
In a landmark deal, Bank Negara Indonesia (BBNI IJ) has issued Indonesia's first AT1 Perpetual Bond, meaning that a future rights issue will likely be more moderate.
Bank Negara Indonesia (BBNI IJ) is often seen as the bank playing catch up with its peers but maybe this time is different and it may finally be ripe for a re-rating.



Bank Negara Indonesia (BBNI IJ) - Ripe for A Re-Rating?

Indonesia

PT Chandra Asri Petrochemical Tbk (CAP) is an integrated petrochemical producer. The Company produces ethylene, propylene, mixed C4, pyrolysis gasoline, polyethylene, polypropylene, and styrene monomer.  CAP serves both the domestic downstream industries and regional export markets in Indonesia.

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Chandra Asri Petrochemical (TPIA IJ)

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Bank Negara Indonesia (BBNI IJ) - Ripe for A Re-Rating?

Bank Negara Indonesia (BBNI IJ) is often seen as the bank playing catch up with its peers but maybe this time is different and it may finally be...

Angus Mackintosh

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