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.

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 - 09 Sep 2019

Telco/Internet specialist

Kirk Boodry

Redex Research

Equity Capital Markets

<a href="https://www.smartkarma.com/entities/the-we-company-wework" target="_blank" data-smartkarma-citation="entities:28061:1" rel="noopener">The We Company (WeWork) (WE US)</a> management has pulled back dramatically on the valuation they expect to get in their IPO, reportedly looking at $20-25bn but we think that is still too high and the chances the listing gets pulled are increasing.  In this report we discuss how we see serious flaws in how they present the addressable opportunity, describe how the tech angle is overstated, and re-iterate some of the corporate governance concerns. For We Company, we think the main disruptor is a more efficient use of space and the main differentiator is Softbank Vision Fund cash but neither of these justify the valuation levels that have been discussed. Before the prospectus was published, we thought the business was worth closer to $12bn and nothing in their presentation has changed our view.

The We Company (WeWork) (WE US) management has pulled back dramatically on the valuation they expect to get in their IPO, reportedly looking at $20-25bn but we think that is still too high and the chances the listing gets pulled are increasing.  In this report we discuss how we see serious flaws in how they present the addressable opportunity, describe how the tech angle is overstated, and re-iterate some of the corporate governance concerns. For We Company, we think the main disruptor is a more efficient use of space and the main differentiator is Softbank Vision Fund cash but neither of these justify the valuation levels that have been discussed. Before the prospectus was published, we thought the business was worth closer to $12bn and nothing in their presentation has changed our view. 

We Company: When You Get past the Hype, the Company Is Not Tech-Driven or Disruptive

In this month’s “In-Focus” section, we provide an update on the Chinese property sector, including trends in contracted sales and operations, as well as regulatory developments. 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 trends in contracted sales and operations, as well as regulatory developments.    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 Property Update - Lucror Analytics

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Thematic (Sector/Industry)

Yesterday after the close, <a href="https://www.smartkarma.com/entities/olympus-corp" target="_blank" data-smartkarma-citation="entities:356:1" rel="noopener">Olympus Corp (7733 JP)</a> announced that <a href="https://www.smartkarma.com/entities/sony-corp" target="_blank" data-smartkarma-citation="entities:563:1" rel="noopener">Sony Corp (6758 JP)</a> had approached Olympus saying it wished to sell its 68,975,800 shares (5.05% of shares out) in Olympus. One can argue about timing, but this is an...<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/097/484/original/Screenshot%202019-08-30%20at%201.56.35%20AM.png?1567101427" class="editor-image img-responsive" data-smartkarma-image-id="97484"></figure>Olympus responded by saying that it would by buy back up to 85,000,000 shares in a ToSTNeT-3 buyback this morning between 8:00-8:45am local time (7:00:7:45pm US E.S.T., 7:00-7:45am Hong Kong Time) at yesterday's close of ¥1,165/share. This is a pretty good response by Olympus.Discussion of process, liquidity provision, possible reaction, and implications below.

Yesterday after the close, Olympus Corp (7733 JP) announced that Sony Corp (6758 JP) had approached Olympus saying it wished to sell its 68,975,800 shares (5.05% of shares out) in Olympus. One can argue about timing, but this is an...Olympus responded by saying that it would by buy back up to 85,000,000 shares in a ToSTNeT-3 buyback this morning between 8:00-8:45am local time (7:00:7:45pm US E.S.T., 7:00-7:45am Hong Kong Time) at yesterday's close of ¥1,165/share. This is a pretty good response by Olympus.Discussion of process, liquidity provision, possible reaction, and implications below.

SONY's Good Governance Sale: The OLYMPUS (7733) ToSTNeT-3 Buyback

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.

WeWork plans to raise US$1bn+ in its IPO, as per media reports. 
I covered some of the basic aspects of the deal in my earlier insights:
<ul>
<li><a href="https://www.smartkarma.com/insights/wework-pre-ipo-in-the-business-of-providing-flexibility-by-being-on-the-hook-for-us-47-2bn" target="_blank" rel="noopener">WeWork Pre-IPO - In the Business of Providing Flexibility by Being on the Hook for US$47.2bn.</a></li>
<li><a href="https://www.smartkarma.com/insights/wework-pre-ipo-problems-with-the-company-s-profitability-metrics-and-evasive-profits" target="_blank" rel="noopener">WeWork Pre-IPO - Problems with the Company’s Profitability Metrics and Evasive Profits</a></li>
</ul>
In this insight, I'll talk about valuation, on per workstation basis.

WeWork plans to raise US$1bn+ in its IPO, as per media reports. 
I covered some of the basic aspects of the deal in my earlier insights:

WeWork Pre-IPO - In the Business of Providing Flexibility by Being on the Hook for US$47.2bn.
WeWork Pre-IPO - Problems with the Company’s Profitability Metrics and Evasive Profits

In this insight, I'll talk about valuation, on per workstation basis. 

WeWork Pre-IPO - Even US$15bn Seems Optimistic

Japan

SoftBank Group Corp. provides telecommunication services. The Company also operates ADSL (Asymmetric Digital Subscriber Line) and fiber optic high-speed Internet connection, e-Commerce businesses, and Internet based advertising and auction businesses.

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Softbank Group (9984 JP)

Lucror Analytics - Morning Views Asia - 09 Sep 2019

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

Lucror Analytics

We Company: When You Get past the Hype, the Company Is Not Tech-Driven or Disruptive

The We Company (WeWork) (WE US) management has pulled back dramatically on the valuation they expect to get in their IPO, reportedly looking at...

Kirk Boodry

Asia HY Monthly - Chinese Property Update - Lucror Analytics

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

Lucror Analytics

SONY's Good Governance Sale: The OLYMPUS (7733) ToSTNeT-3 Buyback

Yesterday after the close, Olympus Corp (7733 JP) announced that Sony Corp (6758 JP) had approached Olympus saying it wished to sell its 68,975,800...

Travis Lundy

WeWork Pre-IPO - Even US$15bn Seems Optimistic

WeWork plans to raise US$1bn+ in its IPO, as per media reports. I covered some of the basic aspects of the deal in my earlier insights: WeWork...

Sumeet Singh

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