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

SJM Holdings has released Q4 and FY 2023 numbers that were mixed, in our view. The ramp-up of Grand Lisboa Palace (GLP) remained slow, with the asset's GGR increasing 11% q-o-q in Q4 (in line with industry growth). As a result, SJM’s market share from Q2 to Q4 remained stagnant at c. 12%. On a brighter note, GLP achieved EBITDA breakeven in Q4/23, with earnings likely to rise further in FY 2024 (on the back of broader industry growth). In addition, excess staff costs stemming from the late-2022 closure of satellite casinos continued to narrow. The EBITDA margin has recovered to the pre-pandemic level of 12%, thanks to improvement in the higher-margin mass gaming segment, albeit this was partly offset by the impact from excess staff costs. We expect SJM to generate slightly positive FCF in FY 2024 (vs. neutral FCF in Q4/23). That said, the company’s profitability should lag that of peers for the next 1-2 years, as it is unlikely that the costs associated with having excess gaming staff on the payroll will be fully resolved until 2025. This means that SJM’s pace of deleveraging may remain slower than peers.

  SJM Holdings has released Q4 and FY 2023 numbers that were mixed, in our view. The ramp-up of Grand Lisboa Palace (GLP) remained slow, with the asset's GGR increasing 11% q-o-q in Q4 (in line with industry growth). As a result, SJM’s market share from Q2 to Q4 remained stagnant at c. 12%.   On a brighter note, GLP achieved EBITDA breakeven in Q4/23, with earnings likely to rise further in FY 2024 (on the back of broader industry growth). In addition, excess staff costs stemming from the late-2022 closure of satellite casinos continued to narrow. The EBITDA margin has recovered to the pre-pandemic level of 12%, thanks to improvement in the higher-margin mass gaming segment, albeit this was partly offset by the impact from excess staff costs.   We expect SJM to generate slightly positive FCF in FY 2024 (vs. neutral FCF in Q4/23). That said, the company’s profitability should lag that of peers for the next 1-2 years, as it is unlikely that the costs associated with having excess gaming staff on the payroll will be fully resolved until 2025. This means that SJM’s pace of deleveraging may remain slower than peers. 

SJM Holdings - Earnings Flash - FY 2023 Results - Lucror Analytics