Senior Credit Analyst, Lucror Analytics

Leonard Law, CFA

Senior Credit Analyst

High Yield Experts

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.

Credit

In this month’s “In-Focus” section, we provide an update on the Chinese property sector, including trends in contracted sales and operations, as well as regulatory developments. The Asia Monthly focuses on providing updates on recent events, information on new issues and spread movements, as well as summarising our top picks, and discussing specific areas of interest in the “In-Focus” section. The Asia Monthly is intended to broaden investors' understanding of the Asian USD high-yield market.

   In this month’s “In-Focus” section, we provide an update on the Chinese property sector, including trends in contracted sales and operations, as well as regulatory developments.    The Asia Monthly focuses on providing updates on recent events, information on new issues and spread movements, as well as summarising our top picks, and discussing specific areas of interest in the “In-Focus” section. The Asia Monthly is intended to broaden investors' understanding of the Asian USD high-yield market. 

Asia HY Monthly - Chinese Property Update - Lucror Analytics

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar. 

Lucror Analytics - Morning Views Asia - 29 Aug 2019

Shui On’s H1/19 results were weak but in line with expectations, given the poor contracted sales registered to date. We expect full-year revenue recognition to remain poor. Overall, the financial profile weakened slightly due to the increase in debt. Positively, recurring income was able to cover almost two thirds of interest expense, and the value of its investment properties covered 1.2x total debt. Shui On is transitioning its business to focus on the development, ownership and management of commercial properties and integrated projects in major T1 cities. Unlike other Chinese property companies, it does not rely on a fast-churn model. In H1/19, recurring operating profit covered 53% of adjusted interest expenses, including perpetual distributions, and at end-June 2019, the value of its long-term investment properties was able to cover total debt by 1.2x. The bulk of Shui On's investment properties are of high quality and strategically located in Shanghai. We revise our fundamental Credit Bias on Shui On to “Negative” from “Stable”.

   Shui On’s H1/19 results were weak but in line with expectations, given the poor contracted sales registered to date. We expect full-year revenue recognition to remain poor. Overall, the financial profile weakened slightly due to the increase in debt. Positively, recurring income was able to cover almost two thirds of interest expense, and the value of its investment properties covered 1.2x total debt.    Shui On is transitioning its business to focus on the development, ownership and management of commercial properties and integrated projects in major T1 cities. Unlike other Chinese property companies, it does not rely on a fast-churn model. In H1/19, recurring operating profit covered 53% of adjusted interest expenses, including perpetual distributions, and at end-June 2019, the value of its long-term investment properties was able to cover total debt by 1.2x. The bulk of Shui On's investment properties are of high quality and strategically located in Shanghai.    We revise our fundamental Credit Bias on Shui On to “Negative” from “Stable”. 

Shui On Land - Earnings Flash - H1 FY 2019 Results - Lucror Analytics

The Asia HY Trade Recommendations report for August includes a summary of our recommendations, as well as our high-conviction ideas. We also provide relative-value charts and lists of the bonds in the Lucror Asia HY index.

   The Asia HY Trade Recommendations report for August includes a summary of our recommendations, as well as our high-conviction ideas. We also provide relative-value charts and lists of the bonds in the Lucror Asia HY index. 

Asia HY Trade Recommendations - August 2019 - Lucror Analytics

In this month’s “In-Focus” section, we provide an update on the Indonesian real estate sector, including the background of the last cycle, sales trends, regulatory actions and expectations. We also comment broadly on the FY 2018 and Q1/19 results of real estate companies under our coverage.

   In this month’s “In-Focus” section, we provide an update on the Indonesian real estate sector, including the background of the last cycle, sales trends, regulatory actions and expectations. We also comment broadly on the FY 2018 and Q1/19 results of real estate companies under our coverage. 

Asia HY Monthly - Indonesian Property Update (2019) - Lucror Analytics

China

Shui On Land Limited engages principally in the development, sale, leasing, management and ownership of residential, office, retail, entertainment and cultural properties in the PRC.

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Shui On Land (272 HK)

Asia HY Monthly - Chinese Property Update - Lucror Analytics

In this month’s “In-Focus” section, we provide an update on the Chinese property sector, including trends in contracted sales and operations, as...

Lucror Analytics

Lucror Analytics - Morning Views Asia - 29 Aug 2019

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region,...

Lucror Analytics

Shui On Land - Earnings Flash - H1 FY 2019 Results - Lucror Analytics

Shui On’s H1/19 results were weak but in line with expectations, given the poor contracted sales registered to date. We expect full-year revenue...

Lucror Analytics

Asia HY Trade Recommendations - August 2019 - Lucror Analytics

The Asia HY Trade Recommendations report for August includes a summary of our recommendations, as well as our high-conviction ideas. We also...

Lucror Analytics

Asia HY Monthly - Indonesian Property Update (2019) - Lucror Analytics

In this month’s “In-Focus” section, we provide an update on the Indonesian real estate sector, including the background of the last cycle, sales...

Lucror Analytics

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