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

In our view, Lippo Karawaci's (LPKR) 9M/22 results were mixed. The Real Estate Development segment was weak due to the challenging operating environment, with rising mortgage rates. The Healthcare and Lifestyle segments performed well, albeit this was not enough to fully offset the softness from Real Estate Development. Cash flows remained dismal. Leverage deteriorated and was elevated. Liquidity appears to be adequate, but is rapidly shrinking LPKR’s near-term direction appears to be uncertain. While management seems confident that a rebound will occur in Q4/22 due to additional launches, the real estate sector in general is suffering from rising interest rates. Thus, it is unclear if take-up rates will be positive. Lifestyle is recovering from a very low base, due to the pandemic. Although Healthcare is the best performing segment, it was affected by a high base effect (due to abnormally high pandemic-related business in 2021). We revise our Credit Bias to “Negative” from “Stable” due to the challenging macroeconomic conditions (with rising inflation and mortgage rates), which will continue to affect Real Estate Development.

  In our view, Lippo Karawaci's (LPKR) 9M/22 results were mixed. The Real Estate Development segment was weak due to the challenging operating environment, with rising mortgage rates. The Healthcare and Lifestyle segments performed well, albeit this was not enough to fully offset the softness from Real Estate Development. Cash flows remained dismal. Leverage deteriorated and was elevated. Liquidity appears to be adequate, but is rapidly shrinking   LPKR’s near-term direction appears to be uncertain. While management seems confident that a rebound will occur in Q4/22 due to additional launches, the real estate sector in general is suffering from rising interest rates. Thus, it is unclear if take-up rates will be positive. Lifestyle is recovering from a very low base, due to the pandemic. Although Healthcare is the best performing segment, it was affected by a high base effect (due to abnormally high pandemic-related business in 2021).   We revise our Credit Bias to “Negative” from “Stable” due to the challenging macroeconomic conditions (with rising inflation and mortgage rates), which will continue to affect Real Estate Development. 

Lippo Karawaci - Earnings Flash - 9M FY 2022 Results - Lucror Analytics