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 Book for the month of September 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 Book for the month of September 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 Book - September 2021 - Lucror Analytics

In this month’s "In-Focus" section, we discuss variable interest entities (VIEs) in China, including recent developments in China and the US that may complicate the future use of VIEs. We also give an overview of recent bond defaults. 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 variable interest entities (VIEs) in China, including recent developments in China and the US that may complicate the future use of VIEs. We also give an overview of recent bond defaults.   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 Variable Interest Entities - Lucror Analytics

Credit Analyst, Lucror Analytics

Chuanyi Zhou

Credit Analyst

Sino-Ocean’s H1/21 results were soft. Revenue growth was not attractive, with a slower pace of delivery than usual. Profitability remained weak, and shows no sign of recovery given the high land cost. Credit metrics remained largely unchanged. We are concerned about the company's aggressive pace of expansion and significant exposure to JVs. The disclosure on land acquisitions was insufficient. However, the land spending/contracted sales guideline on residential projects exceeded the regulator’s guideline of 40%. Sino-Ocean’s exposure to JVs is one of the largest in our coverage universe. However, the liabilities and guarantees do not match the size of the JV assets. This suggests implicit payment obligations at the JV level. The portion of profits attributable to non-controlling shareholders was more than the non-controlling interest in equity, which may indicate debt-like arrangements for consolidated co-operation projects.

  Sino-Ocean’s H1/21 results were soft. Revenue growth was not attractive, with a slower pace of delivery than usual. Profitability remained weak, and shows no sign of recovery given the high land cost. Credit metrics remained largely unchanged. We are concerned about the company's aggressive pace of expansion and significant exposure to JVs. The disclosure on land acquisitions was insufficient. However, the land spending/contracted sales guideline on residential projects exceeded the regulator’s guideline of 40%.   Sino-Ocean’s exposure to JVs is one of the largest in our coverage universe. However, the liabilities and guarantees do not match the size of the JV assets. This suggests implicit payment obligations at the JV level. The portion of profits attributable to non-controlling shareholders was more than the non-controlling interest in equity, which may indicate debt-like arrangements for consolidated co-operation projects. 

Sino-Ocean - Earnings Flash - H1 FY 2021 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-6159'>China SCE</a></li><li><a href='#lucror-entity-13359'>Lenovo</a></li><li><a href='#lucror-entity-28672'>Powerlong Commercial Management Holdings</a></li><li><a href='#lucror-entity-31037'>Sino-Ocean Service</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 SCELenovoPowerlong Commercial Management HoldingsSino-Ocean Service

Morning Views Asia: China SCE, Lenovo, Powerlong Commercial Management Holdings, Sino-Ocean Service

In this month’s "In-Focus" section, we discuss Chinese developers’ urban redevelopment businesses, including local governments' role in urban renewal projects and the various redevelopment models, as well as the impact of such projects on companies' financials. We also give an overview of recent bond defaults. 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 Chinese developers’ urban redevelopment businesses, including local governments' role in urban renewal projects and the various redevelopment models, as well as the impact of such projects on companies' financials. We also give an overview of recent bond defaults.   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 Developers’ Urban Redevelopment Businesses - Lucror Analytics

China

Sino-Ocean Group is an investment holding company primarily engaged in property investment and development, including residential, commercial, and logistics projects. The company also offers property management, senior living, and environmental technology services. It was founded in 1993 and is headquartered in Beijing, China.

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Sino-Ocean Group (3377 HK)

Asia HY Trade Book - September 2021 - Lucror Analytics

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

Lucror Analytics

Asia HY Monthly - Chinese Variable Interest Entities - Lucror Analytics

In this month’s "In-Focus" section, we discuss variable interest entities (VIEs) in China, including recent developments in China and the US that...

Lucror Analytics

Sino-Ocean - Earnings Flash - H1 FY 2021 Results - Lucror Analytics

Sino-Ocean’s H1/21 results were soft. Revenue growth was not attractive, with a slower pace of delivery than usual. Profitability remained weak,...

Lucror Analytics

Morning Views Asia: China SCE, Lenovo, Powerlong Commercial Management Holdings, Sino-Ocean Service

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 - Chinese Developers’ Urban Redevelopment Businesses - Lucror Analytics

In this month’s "In-Focus" section, we discuss Chinese developers’ urban redevelopment businesses, including local governments' role in urban...

Lucror Analytics

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)