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-21047'>Ronshine China Holdings</a></li><li><a href='#lucror-entity-4153'>Shui On Land</a></li><li><a href='#lucror-entity-2979'>Tata Steel Thailand</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 CoRonshine China HoldingsShui On LandTata Steel Thailand

Morning Views Asia: Fantasia Holdings Group Co, Ronshine China Holdings, Shui On Land

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-2036'>Central China Securities</a></li><li><a href='#lucror-entity-18387'>CIFI Holdings</a></li><li><a href='#lucror-entity-227'>Guangzhou R&F Properties</a></li><li><a href='#lucror-entity-14896'>Jingrui Holdings</a></li><li><a href='#lucror-entity-29231'>KWG Living Group</a></li><li><a href='#lucror-entity-21047'>Ronshine China Holdings</a></li><li><a href='#lucror-entity-3474'>Yuzhou Group</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.Central China SecuritiesCIFI HoldingsGuangzhou R&F PropertiesJingrui HoldingsKWG Living GroupRonshine China HoldingsYuzhou Group

Morning Views Asia: Central China Securities, CIFI Holdings, Guangzhou R&F Properties

In this month’s "In-Focus" section, we discuss variable interest entities (VIEs) in China, including recent developments in China and the US that may complicate the future use of VIEs. We also give an overview of recent bond defaults. 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 discuss variable interest entities (VIEs) in China, including recent developments in China and the US that may complicate the future use of VIEs. We also give an overview of recent bond defaults.   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 Variable Interest Entities - Lucror Analytics

Credit Analyst, Lucror Analytics

Chuanyi Zhou

Credit Analyst

Ronshine’s H1/21 results were in line with our expectations, especially as the company had noted in its previous investor presentation the weak profitability would take years to recover. Despite the decline in ASP, contracted sales growth was promising. Revenue recognition is slow, with Ronshine guiding for c. 7% growth for the full year. While there was no increase in debt, the credit profile remained weak, given the low profitability. Ronshine’s major drawbacks are the: [1] significant exposure for co-operation projects, both consolidated and unconsolidated; and [2] poor profitability, which will take time to recover, with expected gross profit margins of only 15-20% post-recovery (at the low end among developers). The very weak EBITDA has negatively impacted the credit profile. The company has a good liquidity profile, with Cash/ST Debt coverage of more than 1x, unutilised credit facilities, as well as quotas for the public credit market both onshore and offshore. We move our recommendation on the RONXIN 2022 Notes to “Buy” from "Hold".

  Ronshine’s H1/21 results were in line with our expectations, especially as the company had noted in its previous investor presentation the weak profitability would take years to recover. Despite the decline in ASP, contracted sales growth was promising. Revenue recognition is slow, with Ronshine guiding for c. 7% growth for the full year. While there was no increase in debt, the credit profile remained weak, given the low profitability.   Ronshine’s major drawbacks are the: [1] significant exposure for co-operation projects, both consolidated and unconsolidated; and [2] poor profitability, which will take time to recover, with expected gross profit margins of only 15-20% post-recovery (at the low end among developers). The very weak EBITDA has negatively impacted the credit profile.   The company has a good liquidity profile, with Cash/ST Debt coverage of more than 1x, unutilised credit facilities, as well as quotas for the public credit market both onshore and offshore.   We move our recommendation on the RONXIN 2022 Notes to “Buy” from "Hold". 

Ronshine - Earnings Flash - H1 FY 2021 Results - 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-479'>Evergrande Real Estate Group</a></li><li><a href='#lucror-entity-14896'>Jingrui Holdings</a></li><li><a href='#lucror-entity-21047'>Ronshine China Holdings</a></li><li><a href='#lucror-entity-2979'>Tata Steel Thailand</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.Evergrande Real Estate GroupJingrui HoldingsRonshine China HoldingsTata Steel Thailand

Morning Views Asia: Evergrande Real Estate Group, Jingrui Holdings, Ronshine China Holdings

Hong Kong

Ronshine China Holdings Limited is a property developer in the PRC, focusing on the development of residential properties in cities in the Western Taiwan Strait s Economic Zone and selected first- and second-tier cities.

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Ronshine China Holdings (3301 HK)

Morning Views Asia: Fantasia Holdings Group Co, Ronshine China Holdings, Shui On Land

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: Central China Securities, CIFI Holdings, Guangzhou R&F Properties

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 Variable Interest Entities - Lucror Analytics

In this month’s "In-Focus" section, we discuss variable interest entities (VIEs) in China, including recent developments in China and the US that...

Lucror Analytics

Ronshine - Earnings Flash - H1 FY 2021 Results - Lucror Analytics

Ronshine’s H1/21 results were in line with our expectations, especially as the company had noted in its previous investor presentation the weak...

Lucror Analytics

Morning Views Asia: Evergrande Real Estate Group, Jingrui Holdings, Ronshine China Holdings

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

Lucror Analytics

Price Gauge

52-week Range

Market Cap (USDm)

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