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

Yestar Healthcare’s FY 2018 results did not contain any surprises. Revenue growth was in line with the IVD market's development and the company's expanded distribution network. Margins were stable, while borrowings and financing costs were largely unchanged. The credit profile remained sound, and liquidity appears to be adequate. However, the company seems to be unable to finance the purchase option for minority interests in its acquired companies, one of which has met a profit guarantee from 2015 to 2017. The maximum consideration should not exceed CNY 675 mn. Yestar has been in negotiations with the seller for a year, but has yet to reach an agreement. Key risks include: [1] partner concentration, as the majority of IVD revenues are derived from Yestar's distribution operations for Roche; [2] policy risk, especially considering the new “two invoices” system to streamline distribution channels; [3] the long cash conversion cycle, given the extended receivables turnover of 4-12 months, as hospitals have onerous payment procedures (e.g. involving insurance claims); and [4] financing risk, given the potential exercise of put options related to previous acquisitions.

   Yestar Healthcare’s FY 2018 results did not contain any surprises. Revenue growth was in line with the IVD market's development and the company's expanded distribution network. Margins were stable, while borrowings and financing costs were largely unchanged. The credit profile remained sound, and liquidity appears to be adequate.    However, the company seems to be unable to finance the purchase option for minority interests in its acquired companies, one of which has met a profit guarantee from 2015 to 2017. The maximum consideration should not exceed CNY 675 mn. Yestar has been in negotiations with the seller for a year, but has yet to reach an agreement.    Key risks include: [1] partner concentration, as the majority of IVD revenues are derived from Yestar's distribution operations for Roche; [2] policy risk, especially considering the new “two invoices” system to streamline distribution channels; [3] the long cash conversion cycle, given the extended receivables turnover of 4-12 months, as hospitals have onerous payment procedures (e.g. involving insurance claims); and [4] financing risk, given the potential exercise of put options related to previous acquisitions. 

Yestar Healthcare - Earnings Flash - FY 2018 Results - Lucror Analytics

Yestar Healthcare Holdings

Yestar Healthcare - Earnings Flash - FY 2018 Results - Lucror Analytics