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

The Asia HY Trade Book for July 2023 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 across Asia (ex-Japan) HY and crossover credits.

  The Asia HY Trade Book for July 2023 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 across Asia (ex-Japan) HY and crossover credits. 

Asia HY Trade Book - July 2023 - Lucror Analytics

Lucror Analytics' ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable). We view MGM China's ESG as "Adequate", in line with the company's Environmental, Social and Governance scores. Controversies are "Immaterial" and Disclosure is "Strong".

Lucror Analytics' ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).  We view MGM China's ESG as "Adequate", in line with the company's Environmental, Social and Governance scores. Controversies are "Immaterial" and Disclosure is "Strong".  

MGM China - ESG Report - Lucror Analytics

Global Gaming and Casinos Industry Specialist, Casino Business Review LLC

Howard J Klein

Global Gaming and Casinos Industry Specialist

Casino Business Review LLC

Extensive experience in marketing and development in the Asian gaming market

Global Gaming and Casinos Industry

Equity Bottom-Up

<ul>
<li>Much market sentiment continues to await more evidence that recovery in Macau can be sustained long term towards reaching baseline 2019 revenue levels.</li>
<li>MGM China Holdings Ltd. market share tracked under double digits pre-covid but is now poised to rise to low to mid teens going forward.</li>
<li>We see the shares as undervalued because its ramp ahead starts at a lower base than peers and is poised for significant sequential earnings beats ahead.</li>
</ul>


Much market sentiment continues to await more evidence that recovery in Macau can be sustained long term towards reaching baseline 2019 revenue levels.
MGM China Holdings Ltd. market share tracked under double digits pre-covid but is now poised to rise to low to mid teens going forward.
We see the shares as undervalued because its ramp ahead starts at a lower base than peers and is poised for significant sequential earnings beats ahead.


MGM China: 1Q23 Results Shine Positive Light on Higher Valuations Ahead

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Melco International Development / Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/melco-crown-entertainme-adr" target="_blank" data-smartkarma-citation="entities:810:1" rel="noopener">Melco Resorts &amp; Entertainment (MLCO US)</a> has entered into a share repurchase agreement with a wholly-owned entity of <a href="https://www.smartkarma.com/entities/melco-international-development-ltd" target="_blank" data-smartkarma-citation="entities:809:1" rel="noopener">Melco International Development (200 HK)</a> to repurchase (and cancel) 40.37mn shares for US$169.8mn.</li>
<li>Melco's effective holding will decline to 51.7% from 53.1% currently. This is the second parent/sub repurchase agreement in the last 7 months. </li>
<li>MLCO's previously announced US$500mn share repurchase program remains unaffected by this privately negotiated transaction, with US$412mn still available for future repurchases under the program.</li>
</ul>



Melco Resorts &amp; Entertainment (MLCO US) has entered into a share repurchase agreement with a wholly-owned entity of Melco International Development (200 HK) to repurchase (and cancel) 40.37mn shares for US$169.8mn.
Melco's effective holding will decline to 51.7% from 53.1% currently. This is the second parent/sub repurchase agreement in the last 7 months. 
MLCO's previously announced US$500mn share repurchase program remains unaffected by this privately negotiated transaction, with US$412mn still available for future repurchases under the program.


Melco (200 HK) Takes More Money Off The Table

<ul>
<li>What may appear duplicative asset segment in MGM actually spreads risk and improves overall margin of safety for both stocks.</li>
<li>MGM China is a pure Macau play while MGM Resorts International is a strong bet on global reach of its gaming properties.</li>
<li>Buying both is insurance against a possible recession downside because of the geographically and demographically diverse customer bases of both enities.</li>
</ul>


What may appear duplicative asset segment in MGM actually spreads risk and improves overall margin of safety for both stocks.
MGM China is a pure Macau play while MGM Resorts International is a strong bet on global reach of its gaming properties.
Buying both is insurance against a possible recession downside because of the geographically and demographically diverse customer bases of both enities.


MGM China and Its US Parent Bought Together Maximizes Potential Returns on Covid Endgames

Hong Kong

MGM China Holdings Ltd. owns a luxury resort, hotel, and casino located in Macau. The Company is also exploring other casino gaming development opportunities in Macau.

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MGM China Holdings (2282 HK)

Asia HY Trade Book - July 2023 - Lucror Analytics

The Asia HY Trade Book for July 2023 includes a summary of our recommendations, as well as our high-conviction ideas. The report also features...

Lucror Analytics

MGM China - ESG Report - Lucror Analytics

Lucror Analytics' ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable). We view MGM China's ESG as...

Lucror Analytics

MGM China: 1Q23 Results Shine Positive Light on Higher Valuations Ahead

MGM China shares have moved off covid lows but still have considerable run room given prospects of exponential gains in forward earnings.

Howard J Klein

Melco (200 HK) Takes More Money Off The Table

Since Melco's first repurchase agreement last August, its implied stub has widened from negative HK$1.22 to negative HK$5.42, despite the stub...

David Blennerhassett

MGM China and Its US Parent Bought Together Maximizes Potential Returns on Covid Endgames

Both MGM entities present a compelling case to own both the parent and Macau unit as both the US and Macau post covid recovery surge is not as yet...

Howard J Klein

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