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

The Asia HY Trade Recommendations report for August includes a summary of our recommendations, as well as our high-conviction ideas. We also provide relative-value charts and lists of the bonds in the Lucror Asia HY index.

   The Asia HY Trade Recommendations report for August includes a summary of our recommendations, as well as our high-conviction ideas. We also provide relative-value charts and lists of the bonds in the Lucror Asia HY index. 

Asia HY Trade Recommendations - August 2019 - 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.

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 - 13 Aug 2019

Credit Analyst, Lucror Analytics

Chuanyi Zhou

Credit Analyst

Lifestyle International Holdings / Credit

The H1/19 operating results from Lifestyle International (LIHL) were soft but stable, albeit margins remained healthy. We expect sales to deteriorate in H2, as both visitor arrivals and consumer confidence will likely be hurt by the ongoing social unrest.  We also have concerns regarding the Kai Tak project, as there are no signs of progress. Borrowings were largely stable, though interest expenses rose in line with the HIBOR. The company's leverage may rise if the Kai Tak project does advance. We are increasingly concerned over the company’s aggressive financial policy, as: [1] its reliance on financial investments is increasing; and [2] the dividend payout has become increasingly aggressive, especially when excluding non-cash fair-value gains from financial investments. We note that the bulk of the dividend will go to Chairman Lau Luen Hong Thomas. We have revised our Credit Bias on LIHL to “Negative” from “Stable”.

   The H1/19 operating results from Lifestyle International (LIHL) were soft but stable, albeit margins remained healthy. We expect sales to deteriorate in H2, as both visitor arrivals and consumer confidence will likely be hurt by the ongoing social unrest.     We also have concerns regarding the Kai Tak project, as there are no signs of progress. Borrowings were largely stable, though interest expenses rose in line with the HIBOR. The company's leverage may rise if the Kai Tak project does advance.    We are increasingly concerned over the company’s aggressive financial policy, as: [1] its reliance on financial investments is increasing; and [2] the dividend payout has become increasingly aggressive, especially when excluding non-cash fair-value gains from financial investments. We note that the bulk of the dividend will go to Chairman Lau Luen Hong Thomas.    We have revised our Credit Bias on LIHL to “Negative” from “Stable”. 

Lifestyle International - Earnings Flash - H1 FY 2019 Results - Lucror Analytics

In this month’s “In-Focus” section, we provide an update on the Indonesian real estate sector, including the background of the last cycle, sales trends, regulatory actions and expectations. We also comment broadly on the FY 2018 and Q1/19 results of real estate companies under our coverage.

   In this month’s “In-Focus” section, we provide an update on the Indonesian real estate sector, including the background of the last cycle, sales trends, regulatory actions and expectations. We also comment broadly on the FY 2018 and Q1/19 results of real estate companies under our coverage. 

Asia HY Monthly - Indonesian Property Update (2019) - Lucror Analytics

Asian Insight Provider - Actionable ideas, CrossASEAN Research

Henry Soediarko

Asian Insight Provider - Actionable ideas

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Equity Bottom-Up

Chow Tai Fook Jewellery / Equity Bottom-Up

The ongoing protest in Hong Kong does not help to lift up the already dull retail sales growth in 2019. Although mainland Chinese tourists still see Hong Kong as one of the holiday and shopping destinations and have been the driving force for the healthy retail sales growth for jewelry and gold-related product sold by <a href="https://www.smartkarma.com/entities/chow-tai-fook-jewellery-group-ltd" target="_blank" data-smartkarma-citation="entities:549:1" rel="noopener">Chow Tai Fook Jewellery (1929 HK)</a> in the past, it may not continue for much longer as the protest could easily carry on for much longer and tension to escalate causing a potential hostile treatment towards mainland Chinese tourist. This could easily cause the company's SSSG in Hong Kong to carry on declining. <div class="content-highlight">Chow Tai Fook's large market capitalization and liquidity could make it a target for a short term SHORT trading opportunity. </div>

The ongoing protest in Hong Kong does not help to lift up the already dull retail sales growth in 2019. Although mainland Chinese tourists still see Hong Kong as one of the holiday and shopping destinations and have been the driving force for the healthy retail sales growth for jewelry and gold-related product sold by Chow Tai Fook Jewellery (1929 HK) in the past, it may not continue for much longer as the protest could easily carry on for much longer and tension to escalate causing a potential hostile treatment towards mainland Chinese tourist. This could easily cause the company's SSSG in Hong Kong to carry on declining. Chow Tai Fook's large market capitalization and liquidity could make it a target for a short term SHORT trading opportunity. 

Hong Kong

Lifestyle International Holdings Limited, through its subsidiaries, operates lifestyle department store and other retail outlets.  The Company also owns most of the properties at which its department store is situated.  At present, Lifestyle International operates the Sogo store, Nufront, and Daiso Land Ten-dollar Shop in Hong Kong.

Lifestyle International Holdings (1212 HK)

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Lifestyle International Holdings (1212 HK)

Asia HY Trade Recommendations - August 2019 - Lucror Analytics

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

Lucror Analytics

Lucror Analytics - Morning Views Asia - 13 Aug 2019

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

Lucror Analytics

Lifestyle International - Earnings Flash - H1 FY 2019 Results - Lucror Analytics

The H1/19 operating results from Lifestyle International (LIHL) were soft but stable, albeit margins remained healthy. We expect sales to...

Lucror Analytics

Asia HY Monthly - Indonesian Property Update (2019) - Lucror Analytics

In this month’s “In-Focus” section, we provide an update on the Indonesian real estate sector, including the background of the last cycle, sales...

Lucror Analytics

Chow Tai Fook (1929): Protest Casualty

The ongoing protest in Hong Kong does not help to lift up the already dull retail sales growth in 2019. Although mainland Chinese tourists still...

Henry Soediarko

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