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 Guangzhou R&F (GRF) as “High Risk” on the LARA scale. The company has a weak financial profile due to aggressive debt-funded growth in the past. Its liquidity is poor, and depends heavily on continued access to the debt capital markets. Positively, the company has a long operating history and diversified geographical coverage. GRF targets the mid-range to high-end residential markets. It has amassed a large and well-distributed land reserve, thanks to an aggressive land-banking strategy. In addition, the company has a sizeable portfolio of hotels and other investment properties, which contributes recurring income.   Our fundamental Credit Bias on GRF is “Negative”, owing to its: [1] persistent high leverage; [2] margin decline; and [3] substantial near-term debt maturities. Moreover, the sizeable hotel business has been severely affected by COVID-19. Positively, the company is likely to focus on deleveraging through asset sales, scaling down land acquisitions and increasing inventory destocking. We view GRF as "Weak" on the LAGA scale. The company is controlled by founders Li Sze Lim (Chairman) and Zhang Li (Co-Chairman and CEO), who together own 56% of GRF. Two NEDs are family members of the founders. Mr Li and Mr Zhang do not appear to have any family connections, with one being from Hong Kong and the other from Guangzhou.

  We view Guangzhou R&F (GRF) as “High Risk” on the LARA scale. The company has a weak financial profile due to aggressive debt-funded growth in the past. Its liquidity is poor, and depends heavily on continued access to the debt capital markets. Positively, the company has a long operating history and diversified geographical coverage. GRF targets the mid-range to high-end residential markets. It has amassed a large and well-distributed land reserve, thanks to an aggressive land-banking strategy. In addition, the company has a sizeable portfolio of hotels and other investment properties, which contributes recurring income.     Our fundamental Credit Bias on GRF is “Negative”, owing to its: [1] persistent high leverage; [2] margin decline; and [3] substantial near-term debt maturities. Moreover, the sizeable hotel business has been severely affected by COVID-19. Positively, the company is likely to focus on deleveraging through asset sales, scaling down land acquisitions and increasing inventory destocking.   We view GRF as "Weak" on the LAGA scale. The company is controlled by founders Li Sze Lim (Chairman) and Zhang Li (Co-Chairman and CEO), who together own 56% of GRF. Two NEDs are family members of the founders. Mr Li and Mr Zhang do not appear to have any family connections, with one being from Hong Kong and the other from Guangzhou. 

Guangzhou R&F - Tear Sheet - Lucror Analytics

Guangzhou R&F Properties

Guangzhou R&F - Tear Sheet - Lucror Analytics