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

China Oil & Gas (COG) has reported reasonable H1/24 results. Gross profit and EBITDA weakened slightly, mainly weighed down by lower earnings from residential connections amid the property market downturn. That said, there was slight earnings growth from the other business segments. Leverage was broadly stable, supported by reduced capex. Liquidity was adequate, as the company drew down on its new USD 315 mn three-year syndicated loan and repaid the bridging facility. COG's next meaningful debt maturity is in June 2026 (when the USD 300 mn notes will come due). We believe the company has options to address the bond repayment, considering its steady business operations and stable (albeit moderately weak) financial profile.

  China Oil & Gas (COG) has reported reasonable H1/24 results. Gross profit and EBITDA weakened slightly, mainly weighed down by lower earnings from residential connections amid the property market downturn. That said, there was slight earnings growth from the other business segments.   Leverage was broadly stable, supported by reduced capex. Liquidity was adequate, as the company drew down on its new USD 315 mn three-year syndicated loan and repaid the bridging facility. COG's next meaningful debt maturity is in June 2026 (when the USD 300 mn notes will come due). We believe the company has options to address the bond repayment, considering its steady business operations and stable (albeit moderately weak) financial profile. 

China Oil & Gas - Earnings Flash - H1 FY 2024 Results - Lucror Analytics

Lucror Analytics' ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable). We assess China Oil & Gas’ ESG as "Adequate", in line with the Environmental, Social and Governance scores. Controversies are "Immaterial" and Disclosure is "Adequate".

Lucror Analytics' ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).  We assess China Oil & Gas’ ESG as "Adequate", in line with the Environmental, Social and Governance scores. Controversies are "Immaterial" and Disclosure is "Adequate". 

China Oil & Gas - ESG Report - Lucror Analytics

COG's FY 2023 results were acceptable in our view. Importantly, the audit issues resulting in the belated publication of results appear to be minor, with auditor PwC giving a clean audit opinion overall. Leverage was largely stable despite the soft earnings, thanks to debt reduction. In addition, we view positively that the guarantees provided to associate Shandong Shengli (which we classify under debt) have largely fallen away. COG's liquidity is adequate, as the company is poised to refinance the bridge loan using a new syndicated loan facility. We move our recommendation to "Buy" from "Hold" on the CHIOIL 4.7 '26s.

  COG's FY 2023 results were acceptable in our view. Importantly, the audit issues resulting in the belated publication of results appear to be minor, with auditor PwC giving a clean audit opinion overall. Leverage was largely stable despite the soft earnings, thanks to debt reduction. In addition, we view positively that the guarantees provided to associate Shandong Shengli (which we classify under debt) have largely fallen away. COG's liquidity is adequate, as the company is poised to refinance the bridge loan using a new syndicated loan facility.   We move our recommendation to "Buy" from "Hold" on the CHIOIL 4.7 '26s. 

China Oil & Gas - Earnings Flash - FY 2023 Results - Lucror Analytics

Global Head of Research & Head of Europe, Lucror Analytics

Felix Fischer

Global Head of Research & Head of Europe

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:
<ol>
<li><a href="https://www.smartkarma.com/entities/sk-hynix-inc" target="_blank" rel="noopener">SK Hynix</a></li>
<li><a href="https://www.smartkarma.com/entities/adani-transmission-ltd" target="_blank" rel="noopener">Adani Transmission</a></li>
<li><a href="https://www.smartkarma.com/entities/adani-green-energy-ltd" target="_blank" rel="noopener">Adani Green Energy</a></li>
<li><a href="https://www.smartkarma.com/entities/cifi-holdings-group-co-ltd" target="_blank" rel="noopener">CIFI Holdings</a></li>
<li><a href="https://www.smartkarma.com/entities/rakuten-group-inc" target="_blank" rel="noopener">Rakuten</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:

SK Hynix
Adani Transmission
Adani Green Energy
CIFI Holdings
Rakuten

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:<ol><li><a href='/entities/vedanta-resources-ltd' target='_blank' rel='noopener'>Vedanta Resources</a></li><li><a href='/entities/longfor-properties' target='_blank' rel='noopener'>Longfor Properties</a></li><li><a href='/entities/anton-oilfield-services-gp' target='_blank' rel='noopener'>Anton Oilfield</a></li><li><a href='/entities/adani-green-energy-ltd' target='_blank' rel='noopener'>Adani Green Energy</a></li><li><a href='/entities/reliance-industries-ltd' target='_blank' rel='noopener'>Reliance Industries</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:Vedanta ResourcesLongfor PropertiesAnton OilfieldAdani Green EnergyReliance Industriesand more...

Hong Kong

China Oil and Gas Group Ltd. is engaged in the investments in, and the operation and management of the natural gas and energy related business. Gas operations include city piped gas business, natural gas vehicle refilling stations, pipeline construction and operation, as well as transportation, delivery and distribution of compressed natural gas (CNG) and liquefied natural gas (LNG).

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China Oil And Gas (603 HK)

China Oil & Gas - Earnings Flash - H1 FY 2024 Results - Lucror Analytics

China Oil & Gas (COG) has reported reasonable H1/24 results. Gross profit and EBITDA weakened slightly, mainly weighed down by lower earnings...

Lucror Analytics

China Oil & Gas - ESG Report - Lucror Analytics

Lucror Analytics' ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable). We assess China Oil & Gas’ ESG...

Lucror Analytics

China Oil & Gas - Earnings Flash - FY 2023 Results - Lucror Analytics

COG's FY 2023 results were acceptable in our view. Importantly, the audit issues resulting in the belated publication of results appear to be...

Lucror Analytics

Weekly Wrap - 25 Oct 2024

Lucror Analytics Weekly Wraps provide an overview of all Morning Views comments and reports published by our analyst team in the past week, and...

Lucror Analytics

Weekly Wrap - 18 Oct 2024

Lucror Analytics Weekly Wraps provide an overview of all Morning Views comments and reports published by our analyst team in the past week, and...

Lucror Analytics

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