Asian Fixed Income/Frontier Market Research

Bondcritic

Bondcritic, established in 2009, is designed to be an independent credit research voice that helps investors gain insights and unbiased analyses on Asian fixed income market. Our mission is to discover deep-value Asian high-yield and distressed bonds with a bottom-up approach, together with the help of our proprietary ESG (Environmental, Social Development, and Governance) model. At the same time, we focus on bringing investment cases of unrated and unloved issuers to the general public.

Logan Property - Jumping on The (Privatization) Bandwagon?

Logan Property - They Went Via the Backdoor

Logan Property Placement - Placing Out Shares at the Highest Price Level Since Listing

Money Matters: Sunac - Did a Canary Just Fall off Its Perch?

Money Matters: Evergrande's Extreme Balancing Act and What It Tells Us About China.

Asia ex-Japan Credit - Analyst, Bondcritic

Brayan Lai

Asia ex-Japan Credit - Analyst

Credit

We initiate our coverage on <a href="https://www.smartkarma.com/entities/7381" target="_blank" data-smartkarma-citation="entities:7381:1">Logan Property Holdings Co Ltd (3380 HK)</a> (“Logan”) with a NEUTRAL recommendation on the LOGPH senior-unsecured USD complex.Logan is considered a smaller sized regional Chinese property developer with a predominant presence in the Guangdong-Hong Kong-Macau Greater Bay Area (“Greater Bay Area”). The company originally began its businesses in 1996 as a developer of mass-market and urban redevelopment projects.The company is on an aggressive growth spurt, having increased its land bank sizably over the past year largely through acquisitions amidst plans to increase presales and asset churn. Outside of its traditional Guangdong-Guangxi base of operations, it has made more recent forays into Western China, Hong Kong and Singapore.Of some concern of late are some unusual accounting treatments and classifications flagged by the company’s former auditor, KPMG. We have considered the potential credit impact of any adjustments, which sees the company operating on lower levels of equity and higher leverage. While somewhat of a red flag, we recognize that this is a sector-wide problem particularly for its high-growth companies. We believe the corporate governance issue is somewhat mitigated by our expectation of sustainable cashflows and comfortable liquidity.

We initiate our coverage on Logan Property Holdings Co Ltd (3380 HK) (“Logan”) with a NEUTRAL recommendation on the LOGPH senior-unsecured USD complex.Logan is considered a smaller sized regional Chinese property developer with a predominant presence in the Guangdong-Hong Kong-Macau Greater Bay Area (“Greater Bay Area”). The company originally began its businesses in 1996 as a developer of mass-market and urban redevelopment projects.The company is on an aggressive growth spurt, having increased its land bank sizably over the past year largely through acquisitions amidst plans to increase presales and asset churn. Outside of its traditional Guangdong-Guangxi base of operations, it has made more recent forays into Western China, Hong Kong and Singapore.Of some concern of late are some unusual accounting treatments and classifications flagged by the company’s former auditor, KPMG. We have considered the potential credit impact of any adjustments, which sees the company operating on lower levels of equity and higher leverage. While somewhat of a red flag, we recognize that this is a sector-wide problem particularly for its high-growth companies. We believe the corporate governance issue is somewhat mitigated by our expectation of sustainable cashflows and comfortable liquidity.

Logan Property Holdings

Logan Property: Aggressive Plans Ahead