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 Future Land as “Medium Risk” on the LARA scale, with its stable and growing business profile offset by high leverage. Profitability has been recovering with the rising realised ASP. The company has a strong presence in the prosperous YRD region, having extended its reach into a T1 city (Shanghai), major T2 cities (Nanjing, Suzhou) and T3 cities in the area. It specialises in developing mass-market products for first-time house buyers and upgraders. Most of Future Land's projects are located on the outskirts of cities. The company is now expanding into building commercial complexes in high-income lower-tier cities. Future Land has a decent land bank. We note the high concentration risk in major cities in the YRD. That said, we are comfortable with the spread of projects over various tiers of cities. The margin could stabilise or decline, given the increasing land costs in the region. Offshore bondholders are in a deeply subordinated position, and the risk of loss in a default scenario is high. Our Credit Bias is "Stable". Positive factors include the: [1] strong contracted sales growth; [2] geographical focus on the YRD, which underpins robust demand; and [3] access to various funding channels at reasonable cost. The negatives are: [1] the debt-funded expansion in lower-tier cities may entail execution risk; and [2] large unexplained related-party receivables and payables. We view Future Land as “Weak” on the LAGA scale. This is mainly on account of the probe involving the Chairman in January 2016. The company has segregated the Chairman and CEO roles. While the EDs are experienced, all the INEDs are from Nanjing/Jiangsu and their effectiveness is unknown. We view Future Land's corporate disclosure as strong compared to other Chinese property developers.

   We view Future Land as “Medium Risk” on the LARA scale, with its stable and growing business profile offset by high leverage. Profitability has been recovering with the rising realised ASP. The company has a strong presence in the prosperous YRD region, having extended its reach into a T1 city (Shanghai), major T2 cities (Nanjing, Suzhou) and T3 cities in the area. It specialises in developing mass-market products for first-time house buyers and upgraders. Most of Future Land's projects are located on the outskirts of cities. The company is now expanding into building commercial complexes in high-income lower-tier cities.    Future Land has a decent land bank. We note the high concentration risk in major cities in the YRD. That said, we are comfortable with the spread of projects over various tiers of cities. The margin could stabilise or decline, given the increasing land costs in the region.    Offshore bondholders are in a deeply subordinated position, and the risk of loss in a default scenario is high.    Our Credit Bias is "Stable". Positive factors include the: [1] strong contracted sales growth; [2] geographical focus on the YRD, which underpins robust demand; and [3] access to various funding channels at reasonable cost. The negatives are: [1] the debt-funded expansion in lower-tier cities may entail execution risk; and [2] large unexplained related-party receivables and payables.    We view Future Land as “Weak” on the LAGA scale. This is mainly on account of the probe involving the Chairman in January 2016. The company has segregated the Chairman and CEO roles. While the EDs are experienced, all the INEDs are from Nanjing/Jiangsu and their effectiveness is unknown. We view Future Land's corporate disclosure as strong compared to other Chinese property developers. 

Future Land - Tear Sheet - Lucror Analytics

Seazen (Formerly Future Land)

Future Land - Tear Sheet - Lucror Analytics