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 China Jinmao as “Low Risk” on the LARA scale. The company is one of Sinochem’s most profitable subsidiaries and enjoys sound relationships with provincial governments. Sinochem has transferred prime land holdings to Jinmao, facilitating the latter's rapid and highly profitable growth. In our opinion, housing restrictions have little impact on the company, as it develops integrated projects that include commercial properties. Jinmao's strong growth is supported by its prime holdings in top-tier cities. That said, increasing land costs in these cities might compress margins, and the debt-funded expansion entails execution risk. The credit profile could deteriorate if sales slow in key markets. Positively, the company enjoys close government relationships, which gives it access to government-led projects in favourable locations.  Our fundamental Credit Bias on Jinmao is "Stable", given its healthy contracted sales. We also expect revenue recognition to pick up further in FY 2020. Jinmao's credit profile is supported by its SOE status, even though its leverage has been weak compared to lower-rated peers.  We view Jinmao as “Moderate” on the LAGA scale. The company has a track record of good operational performance, as well as support from SOE parent Sinochem and the central government. The Board strongly reflects Jinmao's Sinochem ownership, which could be problematic from an investor's perspective if the two companies' interests were to diverge.

  We view China Jinmao as “Low Risk” on the LARA scale. The company is one of Sinochem’s most profitable subsidiaries and enjoys sound relationships with provincial governments. Sinochem has transferred prime land holdings to Jinmao, facilitating the latter's rapid and highly profitable growth. In our opinion, housing restrictions have little impact on the company, as it develops integrated projects that include commercial properties. Jinmao's strong growth is supported by its prime holdings in top-tier cities. That said, increasing land costs in these cities might compress margins, and the debt-funded expansion entails execution risk. The credit profile could deteriorate if sales slow in key markets. Positively, the company enjoys close government relationships, which gives it access to government-led projects in favourable locations.    Our fundamental Credit Bias on Jinmao is "Stable", given its healthy contracted sales. We also expect revenue recognition to pick up further in FY 2020. Jinmao's credit profile is supported by its SOE status, even though its leverage has been weak compared to lower-rated peers.    We view Jinmao as “Moderate” on the LAGA scale. The company has a track record of good operational performance, as well as support from SOE parent Sinochem and the central government. The Board strongly reflects Jinmao's Sinochem ownership, which could be problematic from an investor's perspective if the two companies' interests were to diverge. 

China Jinmao - Tear Sheet - Lucror Analytics

China Jinmao Holdings

China Jinmao - Tear Sheet - Lucror Analytics