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-9757'>Fantasia Holdings Group Co</a></li><li><a href='#lucror-entity-1632'>Gajah Tunggal</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.Fantasia Holdings Group CoGajah Tunggal

Morning Views Asia: Fantasia Holdings Group Co, Gajah Tunggal

We view Gajah Tunggal's proposed tender offer and Notes issuance positively, as these will extend the company’s debt maturity profile. More importantly, the smaller issuance size should reduce future refinancing risks, when the Notes come due in 2026. The transactions should also reduce FX risks, as there will be a more balanced mix of USD and IDR debt in the capital structure. We also view positively the amortising nature of Gajah Tunggal's secured credit facilities, which might help contain the company's debt level going forward. The proposed Notes will have a smaller collateral pool than the existing Notes. That said, S&P estimates that the value of the collateral is worth c. 1.6x of the amount for the proposed Notes.  We expect the proposed issuance to succeed, given the reduced size (compared to the existing ‘22s), improved post-issuance capital structure, as well as the company’s improved leverage in FY 2020. We see fair pricing for the proposed 5NC2 Notes at 8.0-8.5%.

  We view Gajah Tunggal's proposed tender offer and Notes issuance positively, as these will extend the company’s debt maturity profile. More importantly, the smaller issuance size should reduce future refinancing risks, when the Notes come due in 2026. The transactions should also reduce FX risks, as there will be a more balanced mix of USD and IDR debt in the capital structure. We also view positively the amortising nature of Gajah Tunggal's secured credit facilities, which might help contain the company's debt level going forward.   The proposed Notes will have a smaller collateral pool than the existing Notes. That said, S&P estimates that the value of the collateral is worth c. 1.6x of the amount for the proposed Notes.    We expect the proposed issuance to succeed, given the reduced size (compared to the existing ‘22s), improved post-issuance capital structure, as well as the company’s improved leverage in FY 2020. We see fair pricing for the proposed 5NC2 Notes at 8.0-8.5%. 

Gajah Tunggal - Event Flash - Proposed Issuance Of 5NC2 Notes - Lucror Analytics

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-6159'>China SCE</a></li><li><a href='#lucror-entity-1632'>Gajah Tunggal</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 SCEGajah Tunggal

Morning Views Asia: China SCE, Gajah Tunggal

In this month’s "In-Focus" section, we provide an update on Chinese developers’ JV exposure, including typical structures and the JV exposure of the companies 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 Chinese developers’ JV exposure, including typical structures and the JV exposure of the companies 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 - Chinese Developers' JV Exposure - Lucror Analytics

The Asia HY Trade Book for the month of May includes a summary of our recommendations, as well as our high-conviction ideas. The report also features relative-value charts and lists of the bonds in the Lucror Asia HY index.

   The Asia HY Trade Book for the month of May includes a summary of our recommendations, as well as our high-conviction ideas. The report also features relative-value charts and lists of the bonds in the Lucror Asia HY index. 

Asia HY Trade Book - May 2021 - Lucror Analytics

Indonesia

PT Gajah Tunggal Tbk manufactures goods made of rubber, primarily tires and tubes for vehicles. Through its subsidiaries, the Company also manufactures nylon cords, polyesters, ethylene glycol, petrochemical, nylon filament yarns, polyester-chips as raw material for nylon cords and tire yarns as well as synthetic rubber and rims. Gajah Tunggal also trades car accessories.

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Gajah Tunggal (GJTL IJ)

Morning Views Asia: Fantasia Holdings Group Co, Gajah Tunggal

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

Lucror Analytics

Gajah Tunggal - Event Flash - Proposed Issuance Of 5NC2 Notes - Lucror Analytics

We view Gajah Tunggal's proposed tender offer and Notes issuance positively, as these will extend the company’s debt maturity profile. More...

Lucror Analytics

Morning Views Asia: China SCE, Gajah Tunggal

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 - Chinese Developers' JV Exposure - Lucror Analytics

In this month’s "In-Focus" section, we provide an update on Chinese developers’ JV exposure, including typical structures and the JV exposure of...

Lucror Analytics

Asia HY Trade Book - May 2021 - Lucror Analytics

The Asia HY Trade Book for the month of May includes a summary of our recommendations, as well as our high-conviction ideas. The report also...

Lucror Analytics

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)