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

Credit Analyst, Lucror Analytics

Chuanyi Zhou

Credit Analyst

Credit

We view Modern Land (China) Co Ltd (MOLAND) as "High Risk" on the LARA scale, mainly due to its business model and small land bank. The firm has yet to establish a strong reputation in the very niche “green property” market, despite years of manoeuvring. The company has limited operating scale. MOLAND has historically enjoyed strong profit margins. However, this advantage has diminished as its low-cost land is used up. The current margins are below the industry average. The company has expanded outside Beijing and Shanghai. However, in its other markets in T2 and T3 cities, MOLAND holds little competitive advantage over local developers and large national players. The company plans to venture into the US senior housing market and has acquired three land parcels (in Texas and Seattle) for this purpose. We believe this endeavour carries material execution risk. Our fundamental Credit Bias on MOLAND is “Stable”, given the robust contracted sales, sound liquidity and good access to capital. That said, the company no longer has the advantage of strong margins. We remain cautious on its questionable contracted sales and aggressive debt-funded expansion. We view MOLAND as "Inadequate" on the LAGA scale. This is primarily driven by Chairman Zhang Lei's dominant holdings, a weak Executive Board, senior management changes and the Chairman’s material business interests outside the group. We are also concerned about a connected transaction in which he and his daughter were the ultimate beneficiaries.

   We view Modern Land (China) Co Ltd (MOLAND) as "High Risk" on the LARA scale, mainly due to its business model and small land bank. The firm has yet to establish a strong reputation in the very niche “green property” market, despite years of manoeuvring. The company has limited operating scale. MOLAND has historically enjoyed strong profit margins. However, this advantage has diminished as its low-cost land is used up. The current margins are below the industry average.    The company has expanded outside Beijing and Shanghai. However, in its other markets in T2 and T3 cities, MOLAND holds little competitive advantage over local developers and large national players. The company plans to venture into the US senior housing market and has acquired three land parcels (in Texas and Seattle) for this purpose. We believe this endeavour carries material execution risk.    Our fundamental Credit Bias on MOLAND is “Stable”, given the robust contracted sales, sound liquidity and good access to capital. That said, the company no longer has the advantage of strong margins. We remain cautious on its questionable contracted sales and aggressive debt-funded expansion.    We view MOLAND as "Inadequate" on the LAGA scale. This is primarily driven by Chairman Zhang Lei's dominant holdings, a weak Executive Board, senior management changes and the Chairman’s material business interests outside the group. We are also concerned about a connected transaction in which he and his daughter were the ultimate beneficiaries. 

Modern Land China - Tear Sheet - Lucror Analytics