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

China Evergrande’s FY 2020 results were in line with our expectations. The contracted sales and revenue growth was satisfactory, but profit declined and the margins were weaker. The margin pressure should persist, given the downward trend for contracted ASPs as well as the increasing land and construction costs. However, the company has little choice but to continue its price-cutting strategy, in order to bolster sales and ensure sufficient liquidity. The credit profile is highly levered, and Evergrande was in breach of all three of the regulator's thresholds. This means that the company is no longer able to pursue debt-fuelled growth, as no additional debt is allowed. Positively, the company reduced its borrowings in FY 2020. In order to further reduce debt, Evergrande intends to repay all overseas debt during FY 2021 using self-owned funds.

  China Evergrande’s FY 2020 results were in line with our expectations. The contracted sales and revenue growth was satisfactory, but profit declined and the margins were weaker. The margin pressure should persist, given the downward trend for contracted ASPs as well as the increasing land and construction costs. However, the company has little choice but to continue its price-cutting strategy, in order to bolster sales and ensure sufficient liquidity.   The credit profile is highly levered, and Evergrande was in breach of all three of the regulator's thresholds. This means that the company is no longer able to pursue debt-fuelled growth, as no additional debt is allowed. Positively, the company reduced its borrowings in FY 2020. In order to further reduce debt, Evergrande intends to repay all overseas debt during FY 2021 using self-owned funds. 

China Evergrande - Earnings Flash - FY 2020 Results - Lucror Analytics