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

Trung Nguyen

Senior Credit Analyst

Credit

We view Lenovo as “Low Risk” on the LARA scale, mainly due to the business' large size, track record and strong balance sheet. The unrated company has the financial risk profile of an investment-grade rather than a high-yield credit. Lenovo is the world's largest PC maker. The PC segment is also the key profit centre. The Mobile segment has been scaled back to certain markets, and has turned profitable. The Data Centre/Server business is promising and has grown impressively, albeit it is still suffering losses. Negatively, all three of the company's market segments are becoming commoditised. Furthermore, the PC market is experiencing a structural decline due to changes in user behaviour and substitutes (smartphones and tablets). Our fundamental Credit Bias on Lenovo is "Stable", as we believe the improving fundamentals compensate for the increased political risk.  We view the company's corporate governance as “Effective” on the LAGA scale, primarily driven by: [1] the well-structured and experienced Board and management team; [2] robust disclosure, with Lenovo exceeding the HKSE's requirements (results are reported on a quarterly basis, despite being required only semi-annually); and [3] the track record of operating in competitive markets. The 11-member Board has two non-executives and eight INEDs.

   We view Lenovo as “Low Risk” on the LARA scale, mainly due to the business' large size, track record and strong balance sheet. The unrated company has the financial risk profile of an investment-grade rather than a high-yield credit. Lenovo is the world's largest PC maker. The PC segment is also the key profit centre. The Mobile segment has been scaled back to certain markets, and has turned profitable. The Data Centre/Server business is promising and has grown impressively, albeit it is still suffering losses. Negatively, all three of the company's market segments are becoming commoditised. Furthermore, the PC market is experiencing a structural decline due to changes in user behaviour and substitutes (smartphones and tablets).    Our fundamental Credit Bias on Lenovo is "Stable", as we believe the improving fundamentals compensate for the increased political risk.     We view the company's corporate governance as “Effective” on the LAGA scale, primarily driven by: [1] the well-structured and experienced Board and management team; [2] robust disclosure, with Lenovo exceeding the HKSE's requirements (results are reported on a quarterly basis, despite being required only semi-annually); and [3] the track record of operating in competitive markets. The 11-member Board has two non-executives and eight INEDs. 

Lenovo

Lenovo - Tear Sheet - Lucror Analytics