Partner

Patrick Eng

Sparkill & Co

Event-Driven

<ol>
<li>Patient/Long Term Capital Required for High Return Special Situations Comeback </li>
<li>A spilt cup of coffee doesn’t ruin a CAR </li>
<li>Originally good governance but it’s going to get stronger</li>
<li>Potential partnership with BAIC Group is a game changer</li>
</ol>

 

Patient/Long Term Capital Required for High Return Special Situations Comeback  
A spilt cup of coffee doesn’t ruin a CAR 
Originally good governance but it’s going to get stronger
Potential partnership with BAIC Group is a game changer


CAR Inc: Misunderstood Future Elephant Developing in China’s Car Rental Industry

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

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.<ul><li><a href='#lucror-entity-8489'>21Vianet Group</a></li><li><a href='#lucror-entity-942'>Car Inc</a></li><li><a href='#lucror-entity-28672'>Powerlong Commercial Management Holdings</a></li></ul>

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.21Vianet GroupCar IncPowerlong Commercial Management Holdings

Morning Views Asia: 21Vianet Group, Car Inc, Powerlong Commercial Management Holdings

Trung Nguyen

CAR Inc’s Q1/20 results were very weak owing to COVID-19. Travel in general, and car rental in particular, is the industry that has been most severely impacted by COVID-19. Hertz, once the touted partner of CAR Inc, has filed for bankruptcy as demand evaporated. CAR Inc’s financial risk profile has deteriorated, as seen from the weakened Net Debt/EBITDA and coverage ratios. That said, it is encouraging to note that the company has delevered by paying down debt. Liquidity remains weak, due to the large short-term debt. The key near-term credit drivers continue to be: [1] the credibility of CAR Inc's operating statistics given the fraud at Luckin Coffee, which is linked to Chairman Charles Lu, who controls CAR Inc via UCAR; and [2] the possible sale of UCAR’s stake in CAR Inc to a perceived better operator such as BAIC.

  CAR Inc’s Q1/20 results were very weak owing to COVID-19. Travel in general, and car rental in particular, is the industry that has been most severely impacted by COVID-19. Hertz, once the touted partner of CAR Inc, has filed for bankruptcy as demand evaporated. CAR Inc’s financial risk profile has deteriorated, as seen from the weakened Net Debt/EBITDA and coverage ratios. That said, it is encouraging to note that the company has delevered by paying down debt. Liquidity remains weak, due to the large short-term debt.   The key near-term credit drivers continue to be: [1] the credibility of CAR Inc's operating statistics given the fraud at Luckin Coffee, which is linked to Chairman Charles Lu, who controls CAR Inc via UCAR; and [2] the possible sale of UCAR’s stake in CAR Inc to a perceived better operator such as BAIC. 

CAR Inc - Earnings Flash - Q1 FY 2020 Results - Lucror Analytics

From an investor’s perspective, the month of May was dominated by two issues: the likely rate of the post-pandemic economic recovery, and mounting tensions between China and the US. In addition, China held its annual Two Sessions during the month after a delay due to COVID-19. In this report, we focus on the Government Working Report delivered at the meetings, looking for guidance on the trajectory of policy easing and the stimulus meant to drive a post-pandemic recovery. 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.

  From an investor’s perspective, the month of May was dominated by two issues: the likely rate of the post-pandemic economic recovery, and mounting tensions between China and the US. In addition, China held its annual Two Sessions during the month after a delay due to COVID-19. In this report, we focus on the Government Working Report delivered at the meetings, looking for guidance on the trajectory of policy easing and the stimulus meant to drive a post-pandemic recovery.   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 - Takeaways From China's Two Sessions (2020) - Lucror Analytics

The Asia HY Trade Recommendations report for the month of May includes a summary of our recommendations. The report also features relative-value charts and lists of the bonds in the Lucror Asia HY index.

  The Asia HY Trade Recommendations report for the month of May includes a summary of our recommendations. The report also features relative-value charts and lists of the bonds in the Lucror Asia HY index. 

Asia HY Trade Recommendations - May 2020 - Lucror Analytics

China

CAR Inc generates revenue primarily from car rental business and used car sales. The Company provides short-term and long-term rentals, and financial leasing services.  In addition, Car Inc offers other value-added services including accident coverage packages, GPS navigation systems, 24/7 roadside assistance, etc.

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Car Inc (699 HK)

CAR Inc: Misunderstood Future Elephant Developing in China’s Car Rental Industry

Patient/Long Term Capital Required for High Return Special Situations Comeback A spilt cup of coffee doesn’t ruin a CAR Originally good...

Patrick Eng

Morning Views Asia: 21Vianet Group, Car Inc, Powerlong Commercial Management Holdings

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

Lucror Analytics

CAR Inc - Earnings Flash - Q1 FY 2020 Results - Lucror Analytics

CAR Inc’s Q1/20 results were very weak owing to COVID-19. Travel in general, and car rental in particular, is the industry that has been most...

Lucror Analytics

Asia HY Monthly - Takeaways From China's Two Sessions (2020) - Lucror Analytics

From an investor’s perspective, the month of May was dominated by two issues: the likely rate of the post-pandemic economic recovery, and mounting...

Lucror Analytics

Asia HY Trade Recommendations - May 2020 - Lucror Analytics

The Asia HY Trade Recommendations report for the month of May includes a summary of our recommendations. The report also features relative-value...

Lucror Analytics

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