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 Times China as “Medium Risk” on the LARA scale. The company remains highly levered, albeit it has slowed the pace of expansion. The FY 2019 results were promising, with strong top-line growth and stable margins. This came on the back of robust property markets and a stable regulatory environment in Guangdong province (excluding Shenzhen). Times China also has a decent land bank in Guangdong, and is targeting the robust mid-range residential market. The impact from the COVID-19 outbreak on Times China could be limited in H1/20, mainly driven by disruptions to construction works in Q1. While the contracted sales growth could be lower, the upward trend should continue on account of the company’s focus on the Greater Bay Area. Times China's business risk is manageable, due to the limited exposure to Wuhan and the adequate saleable resources. Our Credit Bias on the company is “Stable”. Positives include: [1] geographical diversification in the Pearl River Delta (PRD) region, with a strong brand name and track record; and [2] good sales execution. Negatives include: [1] debt-funded expansion; and [2] Times China's increasing use of JV structures with poor transparency. We view Times China as “Weak” on the LAGA scale. This is primarily driven by the dominating 65% control by Chairman/CEO Shum Chiu Hung.

  We view Times China as “Medium Risk” on the LARA scale. The company remains highly levered, albeit it has slowed the pace of expansion. The FY 2019 results were promising, with strong top-line growth and stable margins. This came on the back of robust property markets and a stable regulatory environment in Guangdong province (excluding Shenzhen). Times China also has a decent land bank in Guangdong, and is targeting the robust mid-range residential market.   The impact from the COVID-19 outbreak on Times China could be limited in H1/20, mainly driven by disruptions to construction works in Q1. While the contracted sales growth could be lower, the upward trend should continue on account of the company’s focus on the Greater Bay Area. Times China's business risk is manageable, due to the limited exposure to Wuhan and the adequate saleable resources.   Our Credit Bias on the company is “Stable”. Positives include: [1] geographical diversification in the Pearl River Delta (PRD) region, with a strong brand name and track record; and [2] good sales execution. Negatives include: [1] debt-funded expansion; and [2] Times China's increasing use of JV structures with poor transparency.   We view Times China as “Weak” on the LAGA scale. This is primarily driven by the dominating 65% control by Chairman/CEO Shum Chiu Hung. 

Times China - Tear Sheet - Lucror Analytics