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

Chandra Asri Petrochemical (CAP) reported Q3/20 earnings that reflected significant improvement relative to Q1 and Q2, which management attributed to better demand for low-cost plastic packaging products from China and Northeast Asia. In addition, management noted that polymer spreads have recovered to a mid-cycle EBITDA range of USD 500-600/tonne, and is cautiously optimistic that this will be maintained in Q4. That said, the 9M/20 earnings were still poor relative to previous years' figures, owing to lower petrochemical margins following massive new capacity additions in the US and China. The company remains committed to developing its second petrochemical plant (CAP2), but has delayed the FID time frame to 2022, subject to the COVID-19 situation in Indonesia. Going forward, we expect CAP to continue generating negative FCF over the near term, which could cause net leverage to deteriorate further.

  Chandra Asri Petrochemical (CAP) reported Q3/20 earnings that reflected significant improvement relative to Q1 and Q2, which management attributed to better demand for low-cost plastic packaging products from China and Northeast Asia. In addition, management noted that polymer spreads have recovered to a mid-cycle EBITDA range of USD 500-600/tonne, and is cautiously optimistic that this will be maintained in Q4.   That said, the 9M/20 earnings were still poor relative to previous years' figures, owing to lower petrochemical margins following massive new capacity additions in the US and China. The company remains committed to developing its second petrochemical plant (CAP2), but has delayed the FID time frame to 2022, subject to the COVID-19 situation in Indonesia. Going forward, we expect CAP to continue generating negative FCF over the near term, which could cause net leverage to deteriorate further. 

Chandra Asri - Earnings Flash - 9M FY 2020 Results - Lucror Analytics