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

Yanlord Land’s Q3/19 results remained weaker than expected, a continuation from its poor showing in Q1 and Q2. It is uncertain whether the company can meet management’s full-year revenue guidance of CNY 19 bn (-24% y-o-y). According to Yanlord, 9M/19 consolidated contracted sales (including JVs and associates) soared 74% y-o-y to CNY 34 bn, which might boost future revenue recognition and earnings. Earnings-based leverage metrics weakened, with LTM Revenue/Debt at 32% (FYE 2018: 59%). That said, Net Debt/Adjusted Inventory improved to 76% (FYE 2018: 99%), as debt decreased and property inventories rose slightly. Yanlord has built up its stake in Singapore-based conglomerate UEL to 42% through married block trades and raised its general offer price. If the company accumulates a UEL stake of more than 50% through the general offer, we expect Moody’s and S&P will downgrade Yanlord's ratings by one notch to Ba3 and BB-, respectively. UEL has weaker earnings-based leverage, and Yanlord is likely to fund the proposed acquisition using mainly debt (which would further weaken its leverage). That said, we believe the acquisition would improve Yanlord’s business and geographical diversification.

  Yanlord Land’s Q3/19 results remained weaker than expected, a continuation from its poor showing in Q1 and Q2. It is uncertain whether the company can meet management’s full-year revenue guidance of CNY 19 bn (-24% y-o-y). According to Yanlord, 9M/19 consolidated contracted sales (including JVs and associates) soared 74% y-o-y to CNY 34 bn, which might boost future revenue recognition and earnings. Earnings-based leverage metrics weakened, with LTM Revenue/Debt at 32% (FYE 2018: 59%). That said, Net Debt/Adjusted Inventory improved to 76% (FYE 2018: 99%), as debt decreased and property inventories rose slightly.   Yanlord has built up its stake in Singapore-based conglomerate UEL to 42% through married block trades and raised its general offer price. If the company accumulates a UEL stake of more than 50% through the general offer, we expect Moody’s and S&P will downgrade Yanlord's ratings by one notch to Ba3 and BB-, respectively. UEL has weaker earnings-based leverage, and Yanlord is likely to fund the proposed acquisition using mainly debt (which would further weaken its leverage). That said, we believe the acquisition would improve Yanlord’s business and geographical diversification. 

Yanlord Land - Earnings Flash - Q3 FY 2019 Results - Lucror Analytics