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 - 04 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

Investor sentiment for Asian HY remained healthy in March, maintaining the strong growth from January and February. That said, there is increasing uncertainty as to whether the US/Sino trade war will be resolved in the short term, with US President Donald Trump seemingly adopting a belligerent stance and Chinese President Xi Jinping waiting for Mr Trump to blink. Major Asian countries are suffering collateral damage, as Chinese imports to February fell y-o-y.

Investor sentiment for Asian HY remained healthy in March, maintaining the strong growth from January and February. That said, there is increasing uncertainty as to whether the US/Sino trade war will be resolved in the short term, with US President Donald Trump seemingly adopting a belligerent stance and Chinese President Xi Jinping waiting for Mr Trump to blink. Major Asian countries are suffering collateral damage, as Chinese imports to February fell y-o-y.

Asia HY Monthly – China Property Update (March 2019)

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

Country Garden’s FY 2018 results were healthy, supported by robust growth in contracted sales (+31% y-o-y), revenue recognition (+67%) and gross profit (+74%). The gross margin expanded 110 bps to 27%. That said, we expect future margin growth to be muted as the company sells more projects in lower-tier cities. We also note that residential demand in lower-tier cities is weaker. Country Garden’s spending on land declined substantially in H2/18. For the full year, total land spending fell to CNY 191 bn (-42% y-o-y) on an attributable basis. The land acquisition cost amounted to 35% of contracted sales (FY 2017: 86%). Although total debt increased 53%, leverage metrics were largely stable, thanks to higher earnings.

   Country Garden’s FY 2018 results were healthy, supported by robust growth in contracted sales (+31% y-o-y), revenue recognition (+67%) and gross profit (+74%). The gross margin expanded 110 bps to 27%. That said, we expect future margin growth to be muted as the company sells more projects in lower-tier cities. We also note that residential demand in lower-tier cities is weaker.    Country Garden’s spending on land declined substantially in H2/18. For the full year, total land spending fell to CNY 191 bn (-42% y-o-y) on an attributable basis. The land acquisition cost amounted to 35% of contracted sales (FY 2017: 86%). Although total debt increased 53%, leverage metrics were largely stable, thanks to higher earnings. 

Country Garden - Earnings Flash - FY 2018 Results - Lucror Analytics

China

Country Garden Holdings Company Limited is a real estate developer.  The Company builds villas, townhouses and apartments in Mainland China. Country Gardens also develops large-scale community facilities such as schools, hotels, hospitals, and theme parks.

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Country Garden Holdings Co (2007 HK)

Lucror Analytics - Morning Views Asia - 04 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

Asia HY Monthly – China Property Update (March 2019)

Investor sentiment for Asian HY remained healthy in March, maintaining the strong growth from January and February. That said, there is increasing...

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

Country Garden - Earnings Flash - FY 2018 Results - Lucror Analytics

Country Garden’s FY 2018 results were healthy, supported by robust growth in contracted sales (+31% y-o-y), revenue recognition (+67%) and gross...

Lucror Analytics

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