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

Senior Credit Analyst, Lucror Analytics

Trung Nguyen

Senior Credit Analyst

Credit

We view Adaro as "Low Risk" on the LARA scale, due to: [1] the company's large scale (being the second-largest coal miner in Indonesia) and low-cost position (<USD 40/ton including royalties; first quartile on the global cost curve); [2] the robust balance sheet, with net cash position and solid credit metrics; and [3] a strong track record of navigating the ups and downs of the coal commodity cycle. Adaro is a large and vertically integrated coal miner primarily based in South Kalimantan, Indonesia. The company has long-term customer relationships, mainly with power stations in the growing Asian region. However, Adaro's coal product mix has a low calorific value of 5,000 CV/kg, hence it commands lower prices (30-45% below the benchmark). Customers are primarily (c. 90%) power plants in the region which exhibit stable demand patterns. The company's coal, Environcoal, is environmentally friendly (low ash, sulfur and nitrogen content). The main risk factors are significant operational and regulatory risks due to Adaro's primary reliance on a single-site coal mine.  Our Credit Bias is “Positive”, given the improving fundamentals amid a highly favourable operating environment. Controversies are "Immaterial", with Adaro only facing one tax issue. That said, the tax issue is a non-concern for investors. The ESG Impact on Credit is "Neutral".

   We view Adaro as "Low Risk" on the LARA scale, due to: [1] the company's large scale (being the second-largest coal miner in Indonesia) and low-cost position (

Adaro Energy

Adaro - Tear Sheet - Lucror Analytics