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

Yuzhou’s FY 2020 results came in below expectations, with revenue very low due to restatements while margins were extremely weak. While management said the restatement was one-off and mostly non-cash, we have our concerns. Most importantly, the restatement points to potential corporate governance issues. Yuzhou continued to expand aggressively, with land spending at over 80% of contracted sales in FY 2020. This was funded by increased debt. Positively, the liquidity profile seems adequate and Yuzhou has detailed its refinancing plan for debt due within a year. Still, the poor results and corporate governance concerns could restrict its access to funding whether onshore or offshore. We revise our LARA view of Yuzhou to "High Risk" from "Medium Risk", and our LAGA opinion to "Inadequate" from "Weak". At the same time, we also move to "Speculative Buy" on the YUZHOU 7.9 2021 Notes, from "Hold".

  Yuzhou’s FY 2020 results came in below expectations, with revenue very low due to restatements while margins were extremely weak. While management said the restatement was one-off and mostly non-cash, we have our concerns. Most importantly, the restatement points to potential corporate governance issues.   Yuzhou continued to expand aggressively, with land spending at over 80% of contracted sales in FY 2020. This was funded by increased debt. Positively, the liquidity profile seems adequate and Yuzhou has detailed its refinancing plan for debt due within a year. Still, the poor results and corporate governance concerns could restrict its access to funding whether onshore or offshore.   We revise our LARA view of Yuzhou to "High Risk" from "Medium Risk", and our LAGA opinion to "Inadequate" from "Weak". At the same time, we also move to "Speculative Buy" on the YUZHOU 7.9 2021 Notes, from "Hold". 

Yuzhou Group - Earnings Flash - FY 2020 Results - Lucror Analytics