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 Group’s H1/20 results were good, with strong contracted sales and revenue growth. However, borrowings also increased during the period, as a result of the new USD Notes issued during the period. The company might have done so in order to refinance the upcoming offshore maturities. The credit metrics were generally stable compared to FY 2019, as the top-line growth offset the increase in debt. Our key concern about Yuzhou is its large exposure to JVs. Based on the company's disclosed attributable cash collection of 90%, we estimate that only 33% of the contracted sales in H1/20 was attributable to Yuzhou. In April 2020, S&P downgraded its ratings on the company to B+ from BB-, suggesting that only 30% of Yuzhou’s projects were consolidated. One month after the downgrade, the agency withdrew its ratings at Yuzhou’s request.

  Yuzhou Group’s H1/20 results were good, with strong contracted sales and revenue growth. However, borrowings also increased during the period, as a result of the new USD Notes issued during the period. The company might have done so in order to refinance the upcoming offshore maturities. The credit metrics were generally stable compared to FY 2019, as the top-line growth offset the increase in debt.   Our key concern about Yuzhou is its large exposure to JVs. Based on the company's disclosed attributable cash collection of 90%, we estimate that only 33% of the contracted sales in H1/20 was attributable to Yuzhou. In April 2020, S&P downgraded its ratings on the company to B+ from BB-, suggesting that only 30% of Yuzhou’s projects were consolidated. One month after the downgrade, the agency withdrew its ratings at Yuzhou’s request. 

Yuzhou Group - Earnings Flash - H1 FY 2020 Results - Lucror Analytics