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

Leonard Law, CFA

Senior Credit Analyst

Credit

We view Road King as “Medium Risk” on the LARA scale. The company has increasingly focused on growing and improving its property development business. We like the company's geographical exposure to the Yangtze River Delta and Pan Bohai Rim regions, as well as the steady cash flow from the toll-road segment. That said, we view negatively the heavy reliance on JV structures for both the property and toll-road segments. The company's disclosures are poorer than those of peers. Positively, we believe Road King has sound access to onshore and offshore capital. The toll-road business has high margins and reflects a decent relationship with the government. However, the company has little pricing power, as tolls are regulated to avoid excessive charges. Our fundamental Credit Bias is “Stable”, on account of the company’s improved profitability and slower pace of acquisitions. We view Road King as “Weak” on the LAGA scale, mainly due to the significant family relationships in the company’s Board and senior management. We also deem corporate transparency as poor compared to peers. Positively, the company’s five INEDs are experienced, with three of them holding small equity stakes in Road King through share options. The Board comprise 11 members, including two NEDs representing Shenzhen Investment. Related-party transactions are not material.

   We view Road King as “Medium Risk” on the LARA scale. The company has increasingly focused on growing and improving its property development business. We like the company's geographical exposure to the Yangtze River Delta and Pan Bohai Rim regions, as well as the steady cash flow from the toll-road segment. That said, we view negatively the heavy reliance on JV structures for both the property and toll-road segments. The company's disclosures are poorer than those of peers.    Positively, we believe Road King has sound access to onshore and offshore capital. The toll-road business has high margins and reflects a decent relationship with the government. However, the company has little pricing power, as tolls are regulated to avoid excessive charges.    Our fundamental Credit Bias is “Stable”, on account of the company’s improved profitability and slower pace of acquisitions.    We view Road King as “Weak” on the LAGA scale, mainly due to the significant family relationships in the company’s Board and senior management. We also deem corporate transparency as poor compared to peers. Positively, the company’s five INEDs are experienced, with three of them holding small equity stakes in Road King through share options. The Board comprise 11 members, including two NEDs representing Shenzhen Investment. Related-party transactions are not material. 

Road King - Tear Sheet - Lucror Analytics

Road King Infrastructure

Road King - Tear Sheet - Lucror Analytics