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.

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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

CIFI Holdings' H1/22 results were slightly below our expectations. The company reported a moderate increase in net debt, which appears to contradict its deleveraging plans. Moreover, we believe CIFI's liquidity is tight, as only one-third of its cash on hand is freely available. We note the company has to bear the burden of ensuring property deliveries at its JV projects (particularly if the JV partner is under distress). This may add to CIFI's cash outflows as it acquire stakes from JV partners. The tight liquidity is also evidenced by the company's failure to call the perpetual securities in August 2022, as well as the new share placement at a 12% discount. Positively, CIFI enjoys relatively good access to financing (compared to other private developers), which greatly enhances its near-term debt repayment prospects. In this regard, the company expects to complete the issuance of CNY 1.5 bn in onshore state-guaranteed bonds around mid-September 2022. We expect CIFI to repay its sole maturing bond in the next 12 months (the USD 300 mn CIGIHF 5.5 23 coming due in January 2023).

  CIFI Holdings' H1/22 results were slightly below our expectations. The company reported a moderate increase in net debt, which appears to contradict its deleveraging plans. Moreover, we believe CIFI's liquidity is tight, as only one-third of its cash on hand is freely available. We note the company has to bear the burden of ensuring property deliveries at its JV projects (particularly if the JV partner is under distress). This may add to CIFI's cash outflows as it acquire stakes from JV partners. The tight liquidity is also evidenced by the company's failure to call the perpetual securities in August 2022, as well as the new share placement at a 12% discount.   Positively, CIFI enjoys relatively good access to financing (compared to other private developers), which greatly enhances its near-term debt repayment prospects. In this regard, the company expects to complete the issuance of CNY 1.5 bn in onshore state-guaranteed bonds around mid-September 2022. We expect CIFI to repay its sole maturing bond in the next 12 months (the USD 300 mn CIGIHF 5.5 23 coming due in January 2023). 

CIFI Holdings - Earnings Flash - H1 FY 2022 Results - Lucror Analytics