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

Gajah Tunggal’s FY 2018 results were slightly disappointing. The slight growth in revenue and profits were offset by higher debt (with much of the increase being due to the IDR's depreciation). As a result, the financial risk profile saw little improvement. This was disappointing, considering that 2017 was a weak year. Liquidity deteriorated, with the company relying more on short-term debt. In FY 2019, we expect similar revenue growth but slightly better profitability, underpinned by the government’s restriction on imports. This will limit competition in the domestic market, which is key for the company. Under the Trade Ministry's new regulation, general importers are now required to import tires through bonded logistics zones. In our view, any pricing increases are therefore likely to fall directly to earnings. Our fundamental Credit Bias on GJTL remains “Negative” on account of its soft performance since FY 2017, against the backdrop of a challenging operating environment. We maintain our "Hold" recommendation on the GJTLIJ Notes, which are still trading wide compared to Indonesian peers on account of the company's weaker credit profile.

   Gajah Tunggal’s FY 2018 results were slightly disappointing. The slight growth in revenue and profits were offset by higher debt (with much of the increase being due to the IDR's depreciation). As a result, the financial risk profile saw little improvement. This was disappointing, considering that 2017 was a weak year. Liquidity deteriorated, with the company relying more on short-term debt.    In FY 2019, we expect similar revenue growth but slightly better profitability, underpinned by the government’s restriction on imports. This will limit competition in the domestic market, which is key for the company. Under the Trade Ministry's new regulation, general importers are now required to import tires through bonded logistics zones. In our view, any pricing increases are therefore likely to fall directly to earnings.    Our fundamental Credit Bias on GJTL remains “Negative” on account of its soft performance since FY 2017, against the backdrop of a challenging operating environment.    We maintain our "Hold" recommendation on the GJTLIJ Notes, which are still trading wide compared to Indonesian peers on account of the company's weaker credit profile. 

Gajah Tunggal - Earnings Flash - FY 2018 Results - Lucror Analytics