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. Lenovo is the world's largest PC maker. The PC segment is also the company's 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, although it is still suffering losses. Negatively, all three of the company's market segments are becoming commoditised. The PC market, having previously experienced a structural decline due to changes in user behaviour as well as substitutes (smartphones and tablets), has enjoyed strong demand as more people have been working from home amid the COVID-19 pandemic. Our fundamental Credit Bias on Lenovo is "Positive", due to the company's strong and improving fundamentals.  We view the company's corporate governance as “Effective” on the LAGA scale, primarily driven by: [1] a good diversified shareholder structure, with Legend Holdings owning a 37% stake in the company, and the rest a 7% stake or lower; [2] the well-structured, diversified and experienced Board and management team; [3] robust disclosure, with Lenovo exceeding the HKEX's reporting requirements (results are reported on a quarterly basis, despite being required only semi-annually); and [4] a good track record and corporate governance disclosure (the company has a standalone detailed corporate governance report). The 10-member Board consists of two non-executive directors and seven INEDs with diverse backgrounds and areas of expertise. We maintain our “Hold” recommendation on the LENOVO curve, as it seems fairly valued compared to peers such as Huawei or JD.com.

  We view Lenovo as “Low Risk” on the LARA scale, mainly due to the business' large size, track record and strong balance sheet. Lenovo is the world's largest PC maker. The PC segment is also the company's 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, although it is still suffering losses. Negatively, all three of the company's market segments are becoming commoditised. The PC market, having previously experienced a structural decline due to changes in user behaviour as well as substitutes (smartphones and tablets), has enjoyed strong demand as more people have been working from home amid the COVID-19 pandemic.   Our fundamental Credit Bias on Lenovo is "Positive", due to the company's strong and improving fundamentals.    We view the company's corporate governance as “Effective” on the LAGA scale, primarily driven by: [1] a good diversified shareholder structure, with Legend Holdings owning a 37% stake in the company, and the rest a 7% stake or lower; [2] the well-structured, diversified and experienced Board and management team; [3] robust disclosure, with Lenovo exceeding the HKEX's reporting requirements (results are reported on a quarterly basis, despite being required only semi-annually); and [4] a good track record and corporate governance disclosure (the company has a standalone detailed corporate governance report). The 10-member Board consists of two non-executive directors and seven INEDs with diverse backgrounds and areas of expertise.   We maintain our “Hold” recommendation on the LENOVO curve, as it seems fairly valued compared to peers such as Huawei or JD.com. 

Lenovo

Lenovo - Tear Sheet - Lucror Analytics