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-3121'>Lippo Karawaci</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.Lippo Karawaci

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

GoTo Gojek Tokopedia Tbk PT / Equity Capital Markets

<ul>
<li>GoTo aims to raise around US$1.25bn from a local listing, which will mainly be targeted at domestic investors. </li>
<li>GoTo, is an Indonesian holding company, was formed in May 2021 as a result of a merger between Gojek, leading player in ride hailing, and Tokopedia, leading e-commerce player.</li>
<li>In this note, we will talk about the company's valuation.</li>
</ul>


GoTo aims to raise around US$1.25bn from a local listing, which will mainly be targeted at domestic investors. 
GoTo, is an Indonesian holding company, was formed in May 2021 as a result of a merger between Gojek, leading player in ride hailing, and Tokopedia, leading e-commerce player.
In this note, we will talk about the company's valuation.


GoTo IPO - Valuation - Missed the Tide, Boat Won’t Rise

ASEAN Insight Provider, CrossASEAN Research

Angus Mackintosh

ASEAN Insight Provider

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

<a href="https://www.smartkarma.com/entities/lippo-karawaci-tbk-pt" target="_blank" data-smartkarma-citation="entities:3121:1" rel="noopener">Lippo Karawaci (LPKR IJ)</a> just released a solid set of numbers for 1Q2021, with strong revenue and profit growth driven by its core healthcare and residential property businesses.
Marketing Sales were up by  +86% YoY to IDR1.3tn reflecting the company's renewed focus on its core residential property pillar and especially the affordable market. It is well on-track to meet or exceed its FY2021 marketing sales target.
Following the <a href="https://www.smartkarma.com/entities/lippo-malls-indonesia-retail-trust" target="_blank" data-smartkarma-citation="entities:10946:1" rel="noopener">Lippo Malls Indonesia Retail Trust (LMRT SP)</a> rights issue, <a href="https://www.smartkarma.com/entities/lippo-karawaci-tbk-pt" target="_blank" data-smartkarma-citation="entities:3121:1" rel="noopener">Lippo Karawaci (LPKR IJ)</a> increased its stake in the Singapore-based REIT to 58.35% making the company the controlling shareholder and therefore consolidating the REIT into LPKR’s financials. Malls are not expected to return to pre-COVID-19 levels until 1Q/2Q2022 but should start to improve gradually. 
A key point of progress is that the company has completed construction for all its legacy projects as at the end of May, opening the way for sales over the next few quarters. 
<a href="https://www.smartkarma.com/entities/siloam-international-hospital" target="_blank" data-smartkarma-citation="entities:878:1" rel="noopener">Siloam International Hospital (SILO IJ)</a> performance remained very strong with sales increasing by +35% YoY and EBITDA hitting a record high with an expansion in margins. 2Q2021 looks set to become another record quarter. 
The strong marketing sales in 1Q2021 and are a true indicator of future sales and profits. We expect the momentum to continue over the next few quarters, with a continuing focus on the affordable segment. 
<a href="https://www.smartkarma.com/entities/lippo-karawaci-tbk-pt" target="_blank" data-smartkarma-citation="entities:3121:1" rel="noopener">Lippo Karawaci (LPKR IJ)</a> remains interesting given its increased focus on its core residential business having successfully restructured its debt last year. The company trades on 0.6x FY21E PBV but at around an 80% discount to its NAV, with earnings turning positive this year, making it more than just a restructuring play.

Lippo Karawaci (LPKR IJ) just released a solid set of numbers for 1Q2021, with strong revenue and profit growth driven by its core healthcare and residential property businesses.
Marketing Sales were up by  +86% YoY to IDR1.3tn reflecting the company's renewed focus on its core residential property pillar and especially the affordable market. It is well on-track to meet or exceed its FY2021 marketing sales target.
Following the Lippo Malls Indonesia Retail Trust (LMRT SP) rights issue, Lippo Karawaci (LPKR IJ) increased its stake in the Singapore-based REIT to 58.35% making the company the controlling shareholder and therefore consolidating the REIT into LPKR’s financials. Malls are not expected to return to pre-COVID-19 levels until 1Q/2Q2022 but should start to improve gradually. 
A key point of progress is that the company has completed construction for all its legacy projects as at the end of May, opening the way for sales over the next few quarters. 
Siloam International Hospital (SILO IJ) performance remained very strong with sales increasing by +35% YoY and EBITDA hitting a record high with an expansion in margins. 2Q2021 looks set to become another record quarter. 
The strong marketing sales in 1Q2021 and are a true indicator of future sales and profits. We expect the momentum to continue over the next few quarters, with a continuing focus on the affordable segment. 
Lippo Karawaci (LPKR IJ) remains interesting given its increased focus on its core residential business having successfully restructured its debt last year. The company trades on 0.6x FY21E PBV but at around an 80% discount to its NAV, with earnings turning positive this year, making it more than just a restructuring play. 

Lippo Karawaci (LPKR IJ) - Affordable Luxury

Trung Nguyen

Lippo Karawaci's (LPKR) H1/23 results were much better than expected, and showed that the company was on track to achieve its turnaround goals. All business segments performed well, with healthcare again the largest contributor to revenue and earnings. Still, we note positively that the real estate segment's performance was in line with guidance amid a challenging operating environment, with high and rising interest rates. Conversely, the financial risk profile remains weak, with elevated leverage ratios and thin fixed charge cover. Liquidity is barely adequate. The healthcare segment continues to be LPKR's key pillar, accounting for two-thirds of revenue and boasting strong (and improved) EBITDA. Moreover, we note that the segment should be relatively immune to the volatility in the economy.

  Lippo Karawaci's (LPKR) H1/23 results were much better than expected, and showed that the company was on track to achieve its turnaround goals. All business segments performed well, with healthcare again the largest contributor to revenue and earnings. Still, we note positively that the real estate segment's performance was in line with guidance amid a challenging operating environment, with high and rising interest rates. Conversely, the financial risk profile remains weak, with elevated leverage ratios and thin fixed charge cover. Liquidity is barely adequate.   The healthcare segment continues to be LPKR's key pillar, accounting for two-thirds of revenue and boasting strong (and improved) EBITDA. Moreover, we note that the segment should be relatively immune to the volatility in the economy. 

Lippo Karawaci - Earnings Flash - H1 FY 2023 Results - Lucror Analytics

Indonesia

PT Lippo Karawaci Tbk is a diversified and integrated property group and is involved in townships, residential homes, hospitals, hotels, retail malls and industrial estate development and management.  PT Lippo Karawaci through its subsidiaries is also engaged in property and REIT management.

Lippo Karawaci (LPKR IJ)

Morning Views Asia: Lippo Karawaci

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

Lucror Analytics

Morning Views Asia: Lippo Karawaci

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

Lucror Analytics

GoTo IPO - Valuation - Missed the Tide, Boat Won’t Rise

GoTo aims to raise around US$1.25bn from a local listing, which will mainly be targeted at domestic investors. In this note, we talk about its...

Sumeet Singh