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

Leonard Law, CFA

Senior Credit Analyst

Credit

Agile Group’s FY 2022 earnings were much poorer than expected, as the company reported a 26% y-o-y revenue decline and abysmal gross margin of just 2% (vs. 23% in H1/22 and 26% in FY 2021). The depressed gross margin reflects the company’s operational challenges, as well as aggressive inventory destocking to prioritise cash-flow generation (which has helped Agile avert a default). The company’s liquidity position remains precarious, though we do not anticipate a default in FY 2023. This considers management's high willingness to address debt commitments, as well as the industry's improved financing environment. At FYE 2022, Agile had a CNY 8.5 bn unrestricted cash balance, which was barely sufficient to cover CNY 3.3 bn of short-term onshore bond/ABS and CNY 4-5 bn of interest expense. The company will have to refinance its bank and syndicated loans, with the government’s recent easing policies being supportive. In addition, we expect Agile to continue deferring new land acquisitions, as it still has a relatively large land bank. Still, the company is likely to continue deferring coupons on its perpetual securities, which are subject to a stoppage of dividend payments.

  Agile Group’s FY 2022 earnings were much poorer than expected, as the company reported a 26% y-o-y revenue decline and abysmal gross margin of just 2% (vs. 23% in H1/22 and 26% in FY 2021). The depressed gross margin reflects the company’s operational challenges, as well as aggressive inventory destocking to prioritise cash-flow generation (which has helped Agile avert a default).   The company’s liquidity position remains precarious, though we do not anticipate a default in FY 2023. This considers management's high willingness to address debt commitments, as well as the industry's improved financing environment. At FYE 2022, Agile had a CNY 8.5 bn unrestricted cash balance, which was barely sufficient to cover CNY 3.3 bn of short-term onshore bond/ABS and CNY 4-5 bn of interest expense. The company will have to refinance its bank and syndicated loans, with the government’s recent easing policies being supportive. In addition, we expect Agile to continue deferring new land acquisitions, as it still has a relatively large land bank. Still, the company is likely to continue deferring coupons on its perpetual securities, which are subject to a stoppage of dividend payments. 

Agile Group - Earnings Flash - FY 2022 Results - Lucror Analytics

Agile Property Holdings

Agile Group - Earnings Flash - FY 2022 Results - Lucror Analytics