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 Sino-Ocean as â€œMedium Riskâ€‌ on the LARA scale. Our assessment reflects the company's: [1] presence in higher-tier cities, especially Beijing, which reduces market risk; [2] debt-funded expansion, which has led to a deterioration in credit metrics and execution risk; [3] increasing use of JV structures, resulting in poor transparency on project-level sales and debt, as well as uncertainty onآ related-party transactions; [4] implied support from China Life Insurance; and [5] experienced Board members and management, with low turnover.آ  Our fundamental Credit Bias on Sino-Ocean is â€œStableâ€‌, albeit the COVID-19 pandemic could affect the company's performance in terms of construction and delivery of properties, rental revenue and the occupancy rate of investment properties, as well as contracted sales. That said, the financial profile has been improving and liquidity has been sound. We like the company's substantial exposure in higher-tier cities, especially Beijing. We also note that it has increasingly made use ofآ JV structures at the project level, which reduces transparency on debt and sales.آ  We view Sino-Oceanآ as â€œModerateâ€‌ on the LAGA scale, given its: [1] long operating and listing history; [2] support from China Life; and [3] effective Board of Directors.

  We view Sino-Ocean as â€œMedium Riskâ€‌ on the LARA scale. Our assessment reflects the company's: [1] presence in higher-tier cities, especially Beijing, which reduces market risk; [2] debt-funded expansion, which has led to a deterioration in credit metrics and execution risk; [3] increasing use of JV structures, resulting in poor transparency on project-level sales and debt, as well as uncertainty onآ related-party transactions; [4] implied support from China Life Insurance; and [5] experienced Board members and management, with low turnover.آ    Our fundamental Credit Bias on Sino-Ocean is â€œStableâ€‌, albeit the COVID-19 pandemic could affect the company's performance in terms of construction and delivery of properties, rental revenue and the occupancy rate of investment properties, as well as contracted sales. That said, the financial profile has been improving and liquidity has been sound. We like the company's substantial exposure in higher-tier cities, especially Beijing. We also note that it has increasingly made use ofآ JV structures at the project level, which reduces transparency on debt and sales.آ    We view Sino-Oceanآ as â€œModerateâ€‌ on the LAGA scale, given its: [1] long operating and listing history; [2] support from China Life; and [3] effective Board of Directors. 

Sino-Ocean - Tear Sheet - Lucror Analytics

Sino-Ocean Group

Sino-Ocean - Tear Sheet - Lucror Analytics