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.

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Senior Credit Analyst, Lucror Analytics

Trung Nguyen

Senior Credit Analyst

Credit

We view LPKR as “High Risk” on the LARA scale. Our view reflects risks associated with the: [1] very poor cash flows and weak liquidity; [2] increasingly poor corporate governance, with repeated delays in the release of financial results and a lack of disclosure on key information; and [3] possibly weak property sales. The holding company is reliant on dividends from subsidiaries and asset sales to support liquidity, and faces substantial short-term debt maturities. Our view also reflects the strengths associated with: [1] the group's position as one of the largest property developers in Indonesia; [2] the significant low-cost land bank of over 1,300 ha; [3] the large and diversified property investment portfolio; and [4] investments in two Singapore-listed REITs. However, event risk is high, given the permit issues and bribery allegations related to the Meikarta project. Our Credit Bias on LPKR is "Negative", due to the deteriorating operational performance and financial metrics amidst challenging real estate market in Indonesia. We view LPKR as “Weak” on the LAGA scale, given the Riady family's control and the track record of delays in the filing of financial results (albeit within the permitted time period for FY 2018).

  We view LPKR as “High Risk” on the LARA scale. Our view reflects risks associated with the: [1] very poor cash flows and weak liquidity; [2] increasingly poor corporate governance, with repeated delays in the release of financial results and a lack of disclosure on key information; and [3] possibly weak property sales. The holding company is reliant on dividends from subsidiaries and asset sales to support liquidity, and faces substantial short-term debt maturities. Our view also reflects the strengths associated with: [1] the group's position as one of the largest property developers in Indonesia; [2] the significant low-cost land bank of over 1,300 ha; [3] the large and diversified property investment portfolio; and [4] investments in two Singapore-listed REITs. However, event risk is high, given the permit issues and bribery allegations related to the Meikarta project.   Our Credit Bias on LPKR is "Negative", due to the deteriorating operational performance and financial metrics amidst challenging real estate market in Indonesia.   We view LPKR as “Weak” on the LAGA scale, given the Riady family's control and the track record of delays in the filing of financial results (albeit within the permitted time period for FY 2018). 

Lippo Karawaci - Tear Sheet - Lucror Analytics