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 operational trends and regulatory developments, as well as an overview of the FY 2020 results of most developers under our full 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 the Chinese property sector, including operational trends and regulatory developments, as well as an overview of the FY 2020 results of most developers under our full 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 Property Update (2021) - 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.<ul><li><a href='#lucror-entity-942'>Car Inc</a></li><li><a href='#lucror-entity-479'>Evergrande Real Estate Group</a></li><li><a href='#lucror-entity-5225'>Country Garden Holdings Co</a></li><li><a href='#lucror-entity-2667'>Soechi Lines</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.Car IncEvergrande Real Estate GroupCountry Garden Holdings CoSoechi Lines

Morning Views Asia: Car Inc, Evergrande Real Estate Group, Country Garden Holdings Co, Soechi Lines

Trung Nguyen

CAR Inc’s FY 2020 results were weak as expected, given that most of the negative development happened in H1 and was earlier disclosed. H2 experienced a rebound in activity. However, we are concerned by the large decline in fleet size, which for a car-rental company corresponds to capacity. It appears that CAR Inc has chosen to sell down its fleet to pay back debt substantially, slashing the debt balance by 55% during the year. This led to an apparent stabilisation in the financial risk profile, as the reduction in debt compensated for the fall in earnings. Liquidity is weak, with cash barely covering short-term debt, to say nothing of funding fleet capex. We revise our Credit Bias on CAR Inc to "Stable" from "Negative", given the take-private by MBK Partners, which we expect will close successfully.

  CAR Inc’s FY 2020 results were weak as expected, given that most of the negative development happened in H1 and was earlier disclosed. H2 experienced a rebound in activity. However, we are concerned by the large decline in fleet size, which for a car-rental company corresponds to capacity. It appears that CAR Inc has chosen to sell down its fleet to pay back debt substantially, slashing the debt balance by 55% during the year. This led to an apparent stabilisation in the financial risk profile, as the reduction in debt compensated for the fall in earnings. Liquidity is weak, with cash barely covering short-term debt, to say nothing of funding fleet capex.   We revise our Credit Bias on CAR Inc to "Stable" from "Negative", given the take-private by MBK Partners, which we expect will close successfully. 

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

In this month's “In-Focus”, we update our study of agency ratings for Asian issuers, analysing ratings transitions for all issuers in the Lucror Asia HY index between January 2014 and the present. 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”, we update our study of agency ratings for Asian issuers, analysing ratings transitions for all issuers in the Lucror Asia HY index between January 2014 and the present.   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 - Asian HY Ratings Transition Study - 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.<ul><li><a href='#lucror-entity-942'>Car Inc</a></li><li><a href='#lucror-entity-479'>Evergrande Real Estate Group</a></li><li><a href='#lucror-entity-18054'>China Fortune Land</a></li><li><a href='#lucror-entity-10675'>Honghua Group</a></li><li><a href='#lucror-entity-14896'>Jingrui Holdings</a></li><li><a href='#lucror-entity-29231'>KWG Living Group</a></li><li><a href='#lucror-entity-21047'>Ronshine China 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.Car IncEvergrande Real Estate GroupChina Fortune LandHonghua GroupJingrui HoldingsKWG Living GroupRonshine China Holdings

Morning Views Asia: Car Inc, Evergrande Real Estate Group, China Fortune Land, Honghua Group

China

CAR Inc. is a professional car rental service provider offering short-term rental, long-term rental, and financial leasing. The company provides a range of auto mobility solutions. It was founded in September 2007 and is headquartered in Beijing, China.

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CAR (CAR HK)

Asia HY Monthly - Chinese Property Update (2021) - Lucror Analytics

In this month’s “In-Focus” section, we provide an update on the Chinese property sector, including operational trends and regulatory...

Lucror Analytics

Morning Views Asia: Car Inc, Evergrande Real Estate Group, Country Garden Holdings Co, Soechi Lines

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 - FY 2020 Results - Lucror Analytics

CAR Inc’s FY 2020 results were weak as expected, given that most of the negative development happened in H1 and was earlier disclosed. H2...

Lucror Analytics

Asia HY Monthly - Asian HY Ratings Transition Study - Lucror Analytics

In this month's “In-Focus”, we update our study of agency ratings for Asian issuers, analysing ratings transitions for all issuers in the Lucror...

Lucror Analytics

Morning Views Asia: Car Inc, Evergrande Real Estate Group, China Fortune Land, Honghua Group

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

Lucror Analytics

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