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

We view China South City (CSC) as “High Risk” on the LARA scale. This reflects risks associated with: [1] rapid debt-funded expansion and a weak financial risk profile; [2] inherent volatility associated with commercial developments; and [3] potential regulatory changes, including delays in government-led supporting infrastructure projects. That said, positives include: [1] decent operating margins, thanks to the cheap land bank; [2] decent geographical diversification in regional centres; and [3] proven ability to access equity and debt capital markets. Access to funding could become a critical factor if the property market experiences greater volatility. We expect the company to maintain stable recurring income. Our fundamental Credit Bias on CSC is “Negative”, owing to the continual need for debt financing, and as demand for trade centres and the surrounding properties will likely remain weak. The credit profile looks set to stay highly levered in the coming year, making it vulnerable to further deterioration in the economy. We view CSC as “Weak” on the LAGA scale. This is primarily due to: [1] the weak Executive Board; [2] potential political exposure; and [3] poor clarity in terms of related companies being direct competitors. We move our recommendation on the CSCHCN curve to “Hold”.

   We view China South City (CSC) as “High Risk” on the LARA scale. This reflects risks associated with: [1] rapid debt-funded expansion and a weak financial risk profile; [2] inherent volatility associated with commercial developments; and [3] potential regulatory changes, including delays in government-led supporting infrastructure projects. That said, positives include: [1] decent operating margins, thanks to the cheap land bank; [2] decent geographical diversification in regional centres; and [3] proven ability to access equity and debt capital markets.    Access to funding could become a critical factor if the property market experiences greater volatility. We expect the company to maintain stable recurring income.    Our fundamental Credit Bias on CSC is “Negative”, owing to the continual need for debt financing, and as demand for trade centres and the surrounding properties will likely remain weak. The credit profile looks set to stay highly levered in the coming year, making it vulnerable to further deterioration in the economy.    We view CSC as “Weak” on the LAGA scale. This is primarily due to: [1] the weak Executive Board; [2] potential political exposure; and [3] poor clarity in terms of related companies being direct competitors.    We move our recommendation on the CSCHCN curve to “Hold”. 

China South City - Tear Sheet - Lucror Analytics