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 Seazen as “High Risk” on the LARA scale, owing to: [1] our expectation of weaker operations due to the COVID-19 outbreak; [2] execution risk in lower-tier cities; [3] the company's significant exposure to JV operations, which have limited transparency; and [4] its high leverage. These risks are mitigated by the company's: [1] stable and growing business profile in both residential and commercial properties; [2] strong presence in the prosperous Yangtze River Delta, having extended its reach into a T1 city (Shanghai), major T2 cities (Nanjing, Suzhou), and T3 cities in the region; and [3] decent land bank and investment property portfolio. Our fundamental Credit Bias on Seazen is "Negative". This takes into account the: [1] weak contracted sales that have yet to show signs of recovery; [2] deteriorating profit margins; [3] more aggressive expansion appetite, which could drive leverage higher; [4] increasing borrowing cost and higher use of trust financing, which may suggest difficulties in accessing alternative financing channels and could point to refinancing risk; and [5] execution risk, with sizeable exposure to lower-tier cities. Positively, management has steered the company well after the senior Mr Wang's arrest last year. The liquidity profile remains adequate. We view Seazen as “Weak” on the LAGA scale. This is mainly on account of the arrest of its former Chairman and controlling shareholder, which significantly impaired its access to funding and pace of expansion in FY 2019. The company has significant exposure to JV operations, which has resulted in large payables and receivables from related parties.

  We view Seazen as “High Risk” on the LARA scale, owing to: [1] our expectation of weaker operations due to the COVID-19 outbreak; [2] execution risk in lower-tier cities; [3] the company's significant exposure to JV operations, which have limited transparency; and [4] its high leverage. These risks are mitigated by the company's: [1] stable and growing business profile in both residential and commercial properties; [2] strong presence in the prosperous Yangtze River Delta, having extended its reach into a T1 city (Shanghai), major T2 cities (Nanjing, Suzhou), and T3 cities in the region; and [3] decent land bank and investment property portfolio.   Our fundamental Credit Bias on Seazen is "Negative". This takes into account the: [1] weak contracted sales that have yet to show signs of recovery; [2] deteriorating profit margins; [3] more aggressive expansion appetite, which could drive leverage higher; [4] increasing borrowing cost and higher use of trust financing, which may suggest difficulties in accessing alternative financing channels and could point to refinancing risk; and [5] execution risk, with sizeable exposure to lower-tier cities. Positively, management has steered the company well after the senior Mr Wang's arrest last year. The liquidity profile remains adequate.   We view Seazen as “Weak” on the LAGA scale. This is mainly on account of the arrest of its former Chairman and controlling shareholder, which significantly impaired its access to funding and pace of expansion in FY 2019. The company has significant exposure to JV operations, which has resulted in large payables and receivables from related parties. 

Seazen (Formerly Future Land)

Seazen - Tear Sheet - Lucror Analytics