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.<ul><li><a href='#lucror-entity-2312'>Alam Sutera Realty</a></li><li><a href='#lucror-entity-713'>Evergrande Auto</a></li><li><a href='#lucror-entity-14896'>Jingrui Holdings</a></li></ul>

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.Alam Sutera RealtyEvergrande AutoJingrui Holdings

Morning Views Asia: Alam Sutera Realty, Evergrande Auto, Jingrui Holdings

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.
<ul>
<li><a href="#lucror-entity-479" target="_blank" rel="noopener">China Evergrande</a></li>
<li><a href="#lucror-entity-810" target="_blank" rel="noopener">Melco Resorts &amp; Entertainment</a></li>
</ul>

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.

China Evergrande
Melco Resorts &amp; Entertainment


Morning Views Asia: China Evergrande, Melco Resorts & Entertainment

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

<div>
In <a href="https://skr.ma/Bx5Bh" target="_blank" rel="noopener">StubWorld: Evergrande Auto (708 HK) Tapping All &amp; Sundry; ASM Pacific Going Private?</a>, I discussed <a href="https://www.smartkarma.com/entities/evergrande-health-industry-group-ltd" target="_blank" data-smartkarma-citation="entities:713:1" rel="noopener">Evergrande Auto (708 HK)</a>'s (also officially known as China Evergrande New Energy Vehicle Group) <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0918/2020091800129.pdf" target="_blank" rel="noopener">announcement</a> of an intention to list on Shanghai's Sci-Tech Board (also known as the "Star Market").
A notice for the EGM has now been <a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0925/2020092501950.pdf" target="_blank" rel="noopener">despatched</a>. The EGM will be held on the 20 October. Pricing has yet to be determined for the listing, but the announcement states:
<blockquote>
The offer price shall not be lower than the closing price of the Hong Kong Shares immediately prior to the date of the Board meeting approving the Proposed Issue of RMB Shares, i.e. HK$25.00 per Share.
</blockquote>
Shares are down ~20% since that Board meeting - after taking into account today's 20% gain.  
Applying the timeline for a handful of precedent RMB issuances,  Evergrande Auto's listing on the STAR board could potentially take place in late Jan/early Feb 2021. 
As usual, more below the fold.
</div>


In StubWorld: Evergrande Auto (708 HK) Tapping All &amp; Sundry; ASM Pacific Going Private?, I discussed Evergrande Auto (708 HK)'s (also officially known as China Evergrande New Energy Vehicle Group) announcement of an intention to list on Shanghai's Sci-Tech Board (also known as the "Star Market").
A notice for the EGM has now been despatched. The EGM will be held on the 20 October. Pricing has yet to be determined for the listing, but the announcement states:

The offer price shall not be lower than the closing price of the Hong Kong Shares immediately prior to the date of the Board meeting approving the Proposed Issue of RMB Shares, i.e. HK$25.00 per Share.

Shares are down ~20% since that Board meeting - after taking into account today's 20% gain.  
Applying the timeline for a handful of precedent RMB issuances,  Evergrande Auto's listing on the STAR board could potentially take place in late Jan/early Feb 2021. 
As usual, more below the fold.


Evergrande Auto (708 HK): EGM Ahead Of Star Market Listing

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.
<ul>
<li><a href="#lucror-entity-713" target="_blank" rel="noopener">China Evergrande</a></li>
<li><a href="#lucror-entity-479" target="_blank" rel="noopener">Indika Energy</a></li>
</ul>

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.

China Evergrande
Indika Energy


Morning Views Asia: China Evergrande, Indika Energy

Silver Point

Thomas J. Monaco

Independent Insight Provider

Silver Point is a boutique research firm that focuses on the broader financial services sector, with a particular focus on troubled institutions globally. 

Asia Ex Japan

Equity Bottom-Up

*No Confidence:In an alleged Evergrande letter sent to local Guangdong government officials on August 24th, the company contends that if it cannot secure approval for its back-door listing or reverse merger on the Shenzhen Stock Exchange with its Hengda subsidiary by January 31, 2021 that investors could demand repayment of CNY 130 bn (USD 19 bn) – equivalent to 92% of Evergrande’s cash as of June 30;  and *Where There Is Smoke:Not the we would ever expect a troubled company to admit that they had a financial liquidity problem, Evergrande said in a statement that social media posts about restructuring plans were “made up”. Several factors confirm liquidity issues: a) Evergrande also asked its employees to post on social media that the August 24th letter was fabricated; b) it hinted that the company has never missed an interest or principal payment throughout its history; c) Evergrande cut property prices by 30% during peak sales period; and d) announced that the Hong Kong Stock Exchange (388.HK) had approved the spinoff 28% of its property management subsidiary and list it shortly for USD 3 bn.

*No Confidence:In an alleged Evergrande letter sent to local Guangdong government officials on August 24th, the company contends that if it cannot secure approval for its back-door listing or reverse merger on the Shenzhen Stock Exchange with its Hengda subsidiary by January 31, 2021 that investors could demand repayment of CNY 130 bn (USD 19 bn) – equivalent to 92% of Evergrande’s cash as of June 30;  and *Where There Is Smoke:Not the we would ever expect a troubled company to admit that they had a financial liquidity problem, Evergrande said in a statement that social media posts about restructuring plans were “made up”. Several factors confirm liquidity issues: a) Evergrande also asked its employees to post on social media that the August 24th letter was fabricated; b) it hinted that the company has never missed an interest or principal payment throughout its history; c) Evergrande cut property prices by 30% during peak sales period; and d) announced that the Hong Kong Stock Exchange (388.HK) had approved the spinoff 28% of its property management subsidiary and list it shortly for USD 3 bn. 

China Evergrande – Caught With Its Pants Down

China

China Evergrande Group is an integrated residential property developer. The Company, through its subsidiaries, operates in property development, investment, management, finance, internet, health, culture, and tourism markets.

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Evergrande (3333 HK)

Morning Views Asia: Alam Sutera Realty, Evergrande Auto, Jingrui Holdings

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

Lucror Analytics

Morning Views Asia: China Evergrande, Melco Resorts & Entertainment

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

Lucror Analytics

Evergrande Auto (708 HK): EGM Ahead Of Star Market Listing

This week in StubWorld ... Three days after raising HK$4bn via a top-up placement, Evergrande Auto (708 HK) ("EA") also officially known...

David Blennerhassett

Morning Views Asia: China Evergrande, Indika Energy

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

Lucror Analytics

China Evergrande – Caught With Its Pants Down

*No Confidence: In an alleged Evergrande letter sent to local Guangdong government officials on August 24th, the company contends that if it cannot...

Thomas J. Monaco

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