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 Yestar Healthcare as "High Risk" on the LARA scale. This reflects risks associated with the company's: [1] uncertainties in financing purchase options related to previous acquisitions; [2] aggressive acquisition appetite; [3] reliance on distribution agreements with foreign brands that are renewed annually; and [4] increased working capital demands, owing to the in-vitro diagnostic devices (IVD) business' longer cash conversion cycle. We note Yestar's leading positions in imaging products and the IVD sector, especially for Roche Diagnostics products. Macro dynamics such as rising affluence and an ageing population are supportive of the credit. Our Credit Bias on Yestar is “Negative”, given: [1] that the company has yet to finance the purchase option exercised in 2018; [2] the possibility of a large payment to fulfil four more purchase options in 2020; [3] potential acquisitions, considering the new equity raised from Fujifilm; [4] assets that are difficult to value/sell; and [5] the long receivables cycle. That said, we note its satisfactory operating performance amid fast growth in the industry. We view the group's corporate governance as "Weak" on the LAGA scale. This takes into account: [1] the Hartono family's 58% stake; [2] that James Hartono holds both the Chairman and CEO roles; [3] that the INEDs, who include an accounting professor in China and two Indonesians, appear weak and might not be vigilant in monitoring management; and [4] Yestar's 2015 acquisition of Jiangsu Uno, whose founder, Hang Wenxia, was allegedly involved in a bribery case.

   We view Yestar Healthcare as "High Risk" on the LARA scale. This reflects risks associated with the company's: [1] uncertainties in financing purchase options related to previous acquisitions; [2] aggressive acquisition appetite; [3] reliance on distribution agreements with foreign brands that are renewed annually; and [4] increased working capital demands, owing to the in-vitro diagnostic devices (IVD) business' longer cash conversion cycle.    We note Yestar's leading positions in imaging products and the IVD sector, especially for Roche Diagnostics products. Macro dynamics such as rising affluence and an ageing population are supportive of the credit.    Our Credit Bias on Yestar is “Negative”, given: [1] that the company has yet to finance the purchase option exercised in 2018; [2] the possibility of a large payment to fulfil four more purchase options in 2020; [3] potential acquisitions, considering the new equity raised from Fujifilm; [4] assets that are difficult to value/sell; and [5] the long receivables cycle. That said, we note its satisfactory operating performance amid fast growth in the industry.    We view the group's corporate governance as "Weak" on the LAGA scale. This takes into account: [1] the Hartono family's 58% stake; [2] that James Hartono holds both the Chairman and CEO roles; [3] that the INEDs, who include an accounting professor in China and two Indonesians, appear weak and might not be vigilant in monitoring management; and [4] Yestar's 2015 acquisition of Jiangsu Uno, whose founder, Hang Wenxia, was allegedly involved in a bribery case. 

Yestar Healthcare - Tear Sheet - Lucror Analytics

Yestar Healthcare Holdings

Yestar Healthcare - Tear Sheet - Lucror Analytics