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-7613'>China Aoyuan Property</a></li><li><a href='#lucror-entity-5225'>Country Garden Holdings Co</a></li><li><a href='#lucror-entity-26799'>Future Retail</a></li><li><a href='#lucror-entity-227'>Guangzhou R&F Properties</a></li><li><a href='#lucror-entity-14896'>Jingrui Holdings</a></li><li><a href='#lucror-entity-5582'>Modernland Realty</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.China Aoyuan PropertyCountry Garden Holdings CoFuture RetailGuangzhou R&F PropertiesJingrui HoldingsModernland Realty

Morning Views Asia: China Aoyuan Property, Country Garden Holdings Co, Future Retail

The Asia HY Trade Recommendations report for the month of August 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 Recommendations report for the month of August 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 Recommendations - August 2020 - Lucror Analytics

Credit Analyst, Lucror Analytics

Chuanyi Zhou

Credit Analyst

China Aoyuan’s H1/20 results were above our expectations, with stronger revenue growth. Moreover, the company has a good base for revenue recognition. The top-line growth should continue, as long as Aoyuan delivers sold properties on schedule. The pace of property delivery should develop in line with an increase in construction loans. Aoyuan’s expansion has been funded extensively by debt. The company's debt burden has surged more than four times from the FYE 2016 level. To refinance its debt, Aoyuan will have to sustain contracted sales growth and incur new borrowings. As a result, it will be more likely to accept a lower ASP (to facilitate faster turnover), as well as incur higher borrowings and interest expense for refinancing. That said, the company did not slow its pace of expansion, with more than half of the contracted sales spent on land acquisitions in H1/20. Moreover, Aoyuan has been increasingly engaged in urban redevelopment projects, which have long development cycles and large upfront capital requirements.

  China Aoyuan’s H1/20 results were above our expectations, with stronger revenue growth. Moreover, the company has a good base for revenue recognition. The top-line growth should continue, as long as Aoyuan delivers sold properties on schedule. The pace of property delivery should develop in line with an increase in construction loans.   Aoyuan’s expansion has been funded extensively by debt. The company's debt burden has surged more than four times from the FYE 2016 level. To refinance its debt, Aoyuan will have to sustain contracted sales growth and incur new borrowings. As a result, it will be more likely to accept a lower ASP (to facilitate faster turnover), as well as incur higher borrowings and interest expense for refinancing.   That said, the company did not slow its pace of expansion, with more than half of the contracted sales spent on land acquisitions in H1/20. Moreover, Aoyuan has been increasingly engaged in urban redevelopment projects, which have long development cycles and large upfront capital requirements. 

China Aoyuan - Earnings Flash - H1 FY 2020 Results - 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-13022'>Anton Oilfield</a></li><li><a href='#lucror-entity-20720'>Binhai Investment</a></li><li><a href='#lucror-entity-7613'>China Aoyuan Property</a></li><li><a href='#lucror-entity-7755'>Kawasan Industri Jababeka</a></li><li><a href='#lucror-entity-112'>Lifestyle International Holdings</a></li><li><a href='#lucror-entity-315'>Softbank Group</a></li><li><a href='#lucror-entity-216'>Tata Motors Ltd</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.Anton OilfieldBinhai InvestmentChina Aoyuan PropertyKawasan Industri JababekaLifestyle International HoldingsSoftbank GroupTata Motors Ltd

Morning Views Asia: Anton Oilfield, Binhai Investment, China Aoyuan Property

In this month’s “In-Focus” section, we discuss LARA and Credit Bias developments for companies under our coverage over the past few years, including related trends for and between Asia, LatAm and Europe. 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 discuss LARA and Credit Bias developments for companies under our coverage over the past few years, including related trends for and between Asia, LatAm and Europe.   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 - LARA And Credit Bias Study (2020 Update) - Lucror Analytics

China

China Aoyuan Group Limited operates as a property development company. The Company develops retails shops and integrated residential projects. China Aoyuan Group conducts businesses domestically and internationally.

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China Aoyuan Property (3883 HK)

Morning Views Asia: China Aoyuan Property, Country Garden Holdings Co, Future Retail

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

Lucror Analytics

Asia HY Trade Recommendations - August 2020 - Lucror Analytics

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

Lucror Analytics

China Aoyuan - Earnings Flash - H1 FY 2020 Results - Lucror Analytics

China Aoyuan’s H1/20 results were above our expectations, with stronger revenue growth. Moreover, the company has a good base for revenue...

Lucror Analytics

Morning Views Asia: Anton Oilfield, Binhai Investment, China Aoyuan Property

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

Lucror Analytics

Asia HY Monthly - LARA And Credit Bias Study (2020 Update) - Lucror Analytics

In this month’s “In-Focus” section, we discuss LARA and Credit Bias developments for companies under our coverage over the past few years,...

Lucror Analytics

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)