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 contracted sales trends, regulatory actions and financing conditions. We also broadly comment on the FY 2018 results for developers 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 the Chinese property sector, including contracted sales trends, regulatory actions and financing conditions. We also broadly comment on the FY 2018 results for developers 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 - China Property Update - Lucror Analytics

Investor sentiment for Asian HY remained healthy in March, maintaining the strong growth from January and February. That said, there is increasing uncertainty as to whether the US/Sino trade war will be resolved in the short term, with US President Donald Trump seemingly adopting a belligerent stance and Chinese President Xi Jinping waiting for Mr Trump to blink. Major Asian countries are suffering collateral damage, as Chinese imports to February fell y-o-y.

Investor sentiment for Asian HY remained healthy in March, maintaining the strong growth from January and February. That said, there is increasing uncertainty as to whether the US/Sino trade war will be resolved in the short term, with US President Donald Trump seemingly adopting a belligerent stance and Chinese President Xi Jinping waiting for Mr Trump to blink. Major Asian countries are suffering collateral damage, as Chinese imports to February fell y-o-y.

Asia HY Monthly – China Property Update (March 2019)

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 - 28 Mar 2019

Lucror Analytics - Morning Views Asia - 21 Mar 2019

Guangzhou R&F's (GRF) results were decent, thanks to the satisfactory growth in contracted sales (+60% y-o-y) and revenue (+30%). Debt growth moderated to 13%, as the company slowed the pace of land acquisitions. The financial profile has improved marginally, albeit we still consider it weak. Moreover, GRF has substantial near-term refinancing obligations. At FYE 2018, the company had CNY 58 bn of short-term debt, as well as CNY 6 bn of domestic Notes with put options exercisable in 2019. While this will increase its borrowing costs, we believe GRF has decent access to capital. Positively, recurring income increased on the back of the 2017 hotel acquisitions from Wanda. Revenue from non-property development segments accounted for 14% of group revenue (FY 2017: 9%). A successful issuance of new H-shares would also be credit positive.

   Guangzhou R&F's (GRF) results were decent, thanks to the satisfactory growth in contracted sales (+60% y-o-y) and revenue (+30%). Debt growth moderated to 13%, as the company slowed the pace of land acquisitions.    The financial profile has improved marginally, albeit we still consider it weak. Moreover, GRF has substantial near-term refinancing obligations. At FYE 2018, the company had CNY 58 bn of short-term debt, as well as CNY 6 bn of domestic Notes with put options exercisable in 2019. While this will increase its borrowing costs, we believe GRF has decent access to capital.    Positively, recurring income increased on the back of the 2017 hotel acquisitions from Wanda. Revenue from non-property development segments accounted for 14% of group revenue (FY 2017: 9%). A successful issuance of new H-shares would also be credit positive. 

Guangzhou R&F - Earnings Flash - FY 2018 Results - Lucror Analytics

China

Guangzhou R&F Properties Co., Ltd. operates real estate businesses. The Company provides housing renovation, housing loans, real estate brokerage, property management, and other services. Guangzhou R&F Properties also operates hotel management.

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Guangzhou R&F Properties (2777 HK)

Asia HY Monthly - China Property Update - Lucror Analytics

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

Lucror Analytics

Asia HY Monthly – China Property Update (March 2019)

Investor sentiment for Asian HY remained healthy in March, maintaining the strong growth from January and February. That said, there is increasing...

Lucror Analytics

Lucror Analytics - Morning Views Asia - 28 Mar 2019

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

Lucror Analytics

Lucror Analytics - Morning Views Asia - 21 Mar 2019

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

Lucror Analytics

Guangzhou R&F - Earnings Flash - FY 2018 Results - Lucror Analytics

Guangzhou R&F's (GRF) results were decent, thanks to the satisfactory growth in contracted sales (+60% y-o-y) and revenue (+30%). Debt growth...

Lucror Analytics

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