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 Chinese developers’ JV exposure, including typical structures and the JV exposure of the companies under our coverage. 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 Chinese developers’ JV exposure, including typical structures and the JV exposure of the companies under our coverage.    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 Developers' JV Exposure - Lucror Analytics

The Asia HY Trade Book for the month of May includes a summary of our recommendations, as well as our high-conviction ideas. The report also features relative-value charts and lists of the bonds in the Lucror Asia HY index.

   The Asia HY Trade Book for the month of May includes a summary of our recommendations, as well as our high-conviction ideas. The report also features relative-value charts and lists of the bonds in the Lucror Asia HY index. 

Asia HY Trade Book - May 2021 - Lucror Analytics

Adani Ports & Special Economic Zone / Credit

Adani Ports and Special Economic Zone has reported acceptable FY 2020-21 results. The company reported robust earnings growth and stable margins, thanks to contributions from the newly acquired Krishnapatnam port. That said, on an l-f-l basis, revenue and EBITDA declined c. 3% y-o-y. Going forward, we expect FCF generation to remain weak, due to the INR 55.5 bn acquisition of Gangavaram port, as well as development capex for Dighi port and the greenfield terminal project in Colombo. This would keep Net Debt/EBITDA at a moderate 3-4x.

  Adani Ports and Special Economic Zone has reported acceptable FY 2020-21 results. The company reported robust earnings growth and stable margins, thanks to contributions from the newly acquired Krishnapatnam port. That said, on an l-f-l basis, revenue and EBITDA declined c. 3% y-o-y. Going forward, we expect FCF generation to remain weak, due to the INR 55.5 bn acquisition of Gangavaram port, as well as development capex for Dighi port and the greenfield terminal project in Colombo. This would keep Net Debt/EBITDA at a moderate 3-4x.  

Adani Ports - Earnings Flash - FY 2020-21 Results - Lucror Analytics

In this month’s “In-Focus” section, we provide an update on the Oil & Gas sector, including oil price development and projections, along with the associated drivers.  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 Oil & Gas sector, including oil price development and projections, along with the associated drivers.    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 - Oil & Gas Update (2021) - Lucror Analytics

We view Adani Ports and Special Economic Zone (APSEZ) as "Low Risk" on the LARA scale. This is supported by the company’s: (1) established position as the largest independent port operator in India; (2) diversification in terms of cargo type and business segments; and (3) relatively stable margins and cash-flow generation. The main risks revolve around its related-party transactions (albeit these have decreased), high level of promoter share pledges, as well as aggressive expansion appetite. Our fundamental Credit Bias on APSEZ is "Stable", as the COVID-19 impact on its earnings has been modest. We expect the company to achieve further earnings growth, supported by contributions from newly acquired assets. That said, leverage is likely to remain at a moderate level, owing to continued debt-funded acquisitions. We view APSEZ as "Weak" on the LAGA scale. The company is effectively controlled by founder and Chairman Gautam Adani and his family. It also has a history of related-party transactions. That said, major businesses within the Adani Group are listed, which improves corporate transparency.

  We view Adani Ports and Special Economic Zone (APSEZ) as "Low Risk" on the LARA scale. This is supported by the company’s: (1) established position as the largest independent port operator in India; (2) diversification in terms of cargo type and business segments; and (3) relatively stable margins and cash-flow generation. The main risks revolve around its related-party transactions (albeit these have decreased), high level of promoter share pledges, as well as aggressive expansion appetite.   Our fundamental Credit Bias on APSEZ is "Stable", as the COVID-19 impact on its earnings has been modest. We expect the company to achieve further earnings growth, supported by contributions from newly acquired assets. That said, leverage is likely to remain at a moderate level, owing to continued debt-funded acquisitions.   We view APSEZ as "Weak" on the LAGA scale. The company is effectively controlled by founder and Chairman Gautam Adani and his family. It also has a history of related-party transactions. That said, major businesses within the Adani Group are listed, which improves corporate transparency. 

Adani Ports - Tear Sheet - Lucror Analytics

India

Adani Ports and Special Economic Zone operates a shipping port on the west coast of India.  The Company's port provides services for bulk and container cargo, crude oil, and railway and other added services.

Adani Ports & Special Economic Zone (ADSEZ IN)

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Adani Ports & Special Economic Zone (ADSEZ IN)

Asia HY Monthly - Chinese Developers' JV Exposure - Lucror Analytics

In this month’s "In-Focus" section, we provide an update on Chinese developers’ JV exposure, including typical structures and the JV exposure of...

Lucror Analytics

Asia HY Trade Book - May 2021 - Lucror Analytics

The Asia HY Trade Book for the month of May includes a summary of our recommendations, as well as our high-conviction ideas. The report also...

Lucror Analytics

Adani Ports - Earnings Flash - FY 2020-21 Results - Lucror Analytics

Adani Ports and Special Economic Zone has reported acceptable FY 2020-21 results. The company reported robust earnings growth and stable margins,...

Lucror Analytics

Asia HY Monthly - Oil & Gas Update (2021) - Lucror Analytics

In this month’s “In-Focus” section, we provide an update on the Oil & Gas sector, including oil price development and projections, along with...

Lucror Analytics

Adani Ports - Tear Sheet - Lucror Analytics

We view Adani Ports and Special Economic Zone (APSEZ) as "Low Risk" on the LARA scale. This is supported by the company’s: (1) established...

Lucror Analytics

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52-week Range

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