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

We view Central China Real Estate (CCRE) as "High Risk" on the LARA scale. The company's operations are geographically concentrated in Henan, China's third-most populous province. While this exposes CCRE to policy and political changes within the province, we believe the risks are partly mitigated by the company's deep market knowledge, brand recognition, as well as longstanding relationships with the local government and construction companies. Our view also considers the deteriorated operating and financing environment across the Chinese property industry, which has adversely impacted CCRE and other private developers. Our fundamental Credit Bias on CCRE is "Negative", given the company's weak sales, very low margins, poor liquidity and lack of access to capital market financing amid the industry turmoil. Moreover, CCRE has material non-debt liabilities. Going forward, the company’s debt repayment prospects may hinge on the development of synergies with its SOE minority investor (Henan Railway) to achieve new business and financing opportunities. Controversies for CCRE are "Immaterial", despite reputational risk on account of worker fatalities. This was mainly reported in the media in 2019 and 2020, with such statistics not provided in the company's ESG reports. The ESG Impact on Credit is "Neutral". We note positively that CCRE's corporate governance has improved, supported by increased transparency and its willingness to honour debt obligations.

  We view Central China Real Estate (CCRE) as "High Risk" on the LARA scale. The company's operations are geographically concentrated in Henan, China's third-most populous province. While this exposes CCRE to policy and political changes within the province, we believe the risks are partly mitigated by the company's deep market knowledge, brand recognition, as well as longstanding relationships with the local government and construction companies. Our view also considers the deteriorated operating and financing environment across the Chinese property industry, which has adversely impacted CCRE and other private developers.   Our fundamental Credit Bias on CCRE is "Negative", given the company's weak sales, very low margins, poor liquidity and lack of access to capital market financing amid the industry turmoil. Moreover, CCRE has material non-debt liabilities. Going forward, the company’s debt repayment prospects may hinge on the development of synergies with its SOE minority investor (Henan Railway) to achieve new business and financing opportunities.   Controversies for CCRE are "Immaterial", despite reputational risk on account of worker fatalities. This was mainly reported in the media in 2019 and 2020, with such statistics not provided in the company's ESG reports. The ESG Impact on Credit is "Neutral". We note positively that CCRE's corporate governance has improved, supported by increased transparency and its willingness to honour debt obligations. 

Central China - Tear Sheet - Lucror Analytics