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 Lippo Karawaci (LPKR) as "High Risk" on the LARA scale, mainly due to the cyclical nature of real estate developers and the COVID-19 pandemic. The company is one of the largest real estate developers in Indonesia, with a large and low-cost land bank spanning over 1,400 ha. It also has a diversified business model with three pillars: (i) development; (ii) management & services; and (iii) real estate management & investments, with two listed REITs in Singapore. That said, LPKR has poor cash flow, due to the large scale of some of its projects. New CEO John Riady (grandson of founder Mochtar Riady) has spearheaded a turnaround from LPKR's liquidity crisis in early 2019, starting with a USD 1 bn capital-raising initiative. This was followed by the strong execution of real estate projects, which resulted in robust marketing sales growth and has cushioned the impact of COVID-19 so far. LPKR's holding company has a large amount of cash, and is therefore not reliant on dividends from subsidiaries and asset sales to support liquidity. Moreover, short-term debt maturities are not substantial. Our fundamental Credit Bias remains "Negative", as the pandemic will likely likely dampen demand for real estate.    We view LPKR as "Moderate" on the LAGA scale, driven by the new CEO's good track record since FY 2019 and strong communications (frequent video webcasts). The new management team, which was put in place in FY 2019, has delivered strong execution and real estate sales even during the pandemic. These factors offset the Riady family's control and LPKR's track record of delays in the filing of financial results.

  We view Lippo Karawaci (LPKR) as "High Risk" on the LARA scale, mainly due to the cyclical nature of real estate developers and the COVID-19 pandemic. The company is one of the largest real estate developers in Indonesia, with a large and low-cost land bank spanning over 1,400 ha. It also has a diversified business model with three pillars: (i) development; (ii) management & services; and (iii) real estate management & investments, with two listed REITs in Singapore. That said, LPKR has poor cash flow, due to the large scale of some of its projects.   New CEO John Riady (grandson of founder Mochtar Riady) has spearheaded a turnaround from LPKR's liquidity crisis in early 2019, starting with a USD 1 bn capital-raising initiative. This was followed by the strong execution of real estate projects, which resulted in robust marketing sales growth and has cushioned the impact of COVID-19 so far. LPKR's holding company has a large amount of cash, and is therefore not reliant on dividends from subsidiaries and asset sales to support liquidity. Moreover, short-term debt maturities are not substantial.   Our fundamental Credit Bias remains "Negative", as the pandemic will likely likely dampen demand for real estate.      We view LPKR as "Moderate" on the LAGA scale, driven by the new CEO's good track record since FY 2019 and strong communications (frequent video webcasts). The new management team, which was put in place in FY 2019, has delivered strong execution and real estate sales even during the pandemic. These factors offset the Riady family's control and LPKR's track record of delays in the filing of financial results. 

Lippo Karawaci - Tear Sheet - Lucror Analytics