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.

High Yield Experts

Credit Analyst, Lucror Analytics

Chuanyi Zhou

Credit Analyst

Credit

361 Degrees' results contained few surprises given the earlier profit warning. Cash flows were particularly weak, due to deterioration in working capital. The balance sheet seems strong (assuming the huge stated cash position is accurate). In 2018, the company chose to issue USD Notes at relatively high interest, despite having sufficient cash on hand to refinance the CNY Notes.  We find it very interesting that: [1] 361's capex has been minimal at just 0.6% of revenue, compared to 3.2% for ANTA and 4.3% for Li Ning; and [2] the company decided to increase its bank deposits from CNY 3.5 bn to CNY 4.5 bn in H2/18 despite the weak business operations, which hardly generated any cash. It also sold 15% of the fast-growing 361 Kids business for CNY 350 mn to outside investors without disclosing this in the MD&A, and investors would uncover this only if they follow the financials closely. We believe that a transaction of such significance should have been highlighted upfront. Our Credit Bias is “Negative”, as we are sceptical as to the credibility of 361's financial information. We maintain "Not Recommended" on the Notes, as we do not have full confidence in the company’s financials.

   361 Degrees' results contained few surprises given the earlier profit warning. Cash flows were particularly weak, due to deterioration in working capital. The balance sheet seems strong (assuming the huge stated cash position is accurate). In 2018, the company chose to issue USD Notes at relatively high interest, despite having sufficient cash on hand to refinance the CNY Notes.     We find it very interesting that: [1] 361's capex has been minimal at just 0.6% of revenue, compared to 3.2% for ANTA and 4.3% for Li Ning; and [2] the company decided to increase its bank deposits from CNY 3.5 bn to CNY 4.5 bn in H2/18 despite the weak business operations, which hardly generated any cash. It also sold 15% of the fast-growing 361 Kids business for CNY 350 mn to outside investors without disclosing this in the MD&A, and investors would uncover this only if they follow the financials closely. We believe that a transaction of such significance should have been highlighted upfront.    Our Credit Bias is “Negative”, as we are sceptical as to the credibility of 361's financial information.    We maintain "Not Recommended" on the Notes, as we do not have full confidence in the company’s financials. 

361 Degrees - Earnings Flash - FY 2018 Results - Lucror Analytics

361 Degrees International

361 Degrees - Earnings Flash - FY 2018 Results - Lucror Analytics