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

<p>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. </p>

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 - 23 Oct 2018

Global Cross-Asset Energy Analyst, VAC Investments

Aaditya Chintalapati, CFA

Global Cross-Asset Energy Analyst

VAC Investments

Thematic (Sector/Industry)

<h2>Oil Price</h2>
<p>Crude oil prices fell for the sixth straight week, with WTI ending the week at USD 68.5/bbl and Brent at USD 73/bbl. Expectations of rising global demand for crude in the medium-term and potential supply disruptions from Iranian sanctions were overshadowed by market concerns around the risks of global trade disruptions from the US and China's ongoing dispute, likely downside risks to European crude demand from Turkey's crude imports given ongoing currency weakness and increased supply…</p>

Oil Price
Crude oil prices fell for the sixth straight week, with WTI ending the week at USD 68.5/bbl and Brent at USD 73/bbl. Expectations of rising global demand for crude in the medium-term and potential supply disruptions from Iranian sanctions were overshadowed by market concerns around the risks of global trade disruptions from the US and China's ongoing dispute, likely downside risks to European crude demand from Turkey's crude imports given ongoing currency weakness and increased supply…

Independent Asian Credit Research, Bondcritic

Warut Promboon

Independent Asian Credit Research

Asian Fixed Income/Frontier Market Research

Bondcritic

Bondcritic, established in 2009, is designed to be an independent credit research voice that helps investors gain insights and unbiased analyses on Asian fixed income market. Our mission is to discover deep-value Asian high-yield and distressed bonds with a bottom-up approach, together with the help of our proprietary ESG (Environmental, Social Development, and Governance) model. At the same time, we focus on bringing investment cases of unrated and unloved issuers to the general public.

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<h2><strong>Executive summary</strong></h2>
</div>
<p><a href="https://www.smartkarma.com/entities/22202" target="_blank" data-smartkarma-citation="entities:22202:1">Vedanta Resources PLC (VED LN)</a> (Vedanta) FY18 results, ended 31 March 2018, were within our expectation. EBITDA contribution from all key commodity businesses improved over the last 2 years. Notable EBITDA growth of 30%+ YoY were observed in zinc, oil and aluminum businesses, which accounted for 85% of FY18 EBITDA. We expect a rising EBITDA trend in 2018 and 2019 on favorable commodity prices (EXHIBIT 1).</p>
<p>Vedanta’s operating subsidiaries continue to raise dividend payouts…</p>


Executive summary

Vedanta Resources PLC (VED LN) (Vedanta) FY18 results, ended 31 March 2018, were within our expectation. EBITDA contribution from all key commodity businesses improved over the last 2 years. Notable EBITDA growth of 30%+ YoY were observed in zinc, oil and aluminum businesses, which accounted for 85% of FY18 EBITDA. We expect a rising EBITDA trend in 2018 and 2019 on favorable commodity prices (EXHIBIT 1).
Vedanta’s operating subsidiaries continue to raise dividend payouts…

Vedanta Resources: ZINCronized Deleveraging

Equity Analyst

Gihan Bandara

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Event-Driven

<p>The Reserve Bank of India published a list of companies that has a collective outstanding debt value of around INR2,000bn during 2017. This list includes 12 major companies that account for 20% of the current NPAs of the Indian banking system, out of these, 5 are steel manufacturers (Bhushan Steel, Bhushan Power, Monnet Ispat, Electrosteel and Essar Steel). The cumulative steel production capacity of these five companies are around 23 MTPA. Accordingly, these companies account for around 25% of…</p>

The Reserve Bank of India published a list of companies that has a collective outstanding debt value of around INR2,000bn during 2017. This list includes 12 major companies that account for 20% of the current NPAs of the Indian banking system, out of these, 5 are steel manufacturers (Bhushan Steel, Bhushan Power, Monnet Ispat, Electrosteel and Essar Steel). The cumulative steel production capacity of these five companies are around 23 MTPA. Accordingly, these companies account for around 25% of…

TATA Steel Could Retake Capacity Crown as 20% of Indian Steel Capacity up for Grabs

<p><a href="https://www.smartkarma.com/entities/22202" target="_blank" data-smartkarma-citation="entities:22202:1">Vedanta Resources PLC (VED LN)</a> (Vedanta) 9M FY18 results, ended last December, were within our expectation. Zinc and oil businesses contributed 77% of EBITDA driven by buoyant commodity prices. We expect the company’s EBITDA to continue improving in 2018 on favorable zinc and oil prices.</p><p>Vedanta’s operating subsidiaries continue to raise dividend payouts. The recent announcement of USD1.2bn dividend by Vedanta Limited (VL) in March 2018, will result in payout of USD600m to Vedanta, which could be…</p>

Vedanta Resources PLC (VED LN) (Vedanta) 9M FY18 results, ended last December, were within our expectation. Zinc and oil businesses contributed 77% of EBITDA driven by buoyant commodity prices. We expect the company’s EBITDA to continue improving in 2018 on favorable zinc and oil prices.Vedanta’s operating subsidiaries continue to raise dividend payouts. The recent announcement of USD1.2bn dividend by Vedanta Limited (VL) in March 2018, will result in payout of USD600m to Vedanta, which could be…

Vedanta Resources: 9-Month Results on Track

India

Vedanta Resources Limited operates as a diversified natural resource company. The Company extracts and process zinc, lead, aluminum, iron ore, copper, and silver, as well as focuses on oil and natural gas. Vedanta Resources serves clients worldwide.

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Vedanta Resources (VED LN)

Lucror Analytics - Morning Views Asia - 23 Oct 2018

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

Lucror Analytics

Global E&Ps: Energy Weekly Vol. 21

Oil Price Crude oil prices fell for the sixth straight week, with WTI ending the week at USD 68.5/bbl and Brent at USD 73/bbl. Expectations of...

Aaditya Chintalapati, CFA

Vedanta Resources: ZINCronized Deleveraging

Executive summary Vedanta Resources PLC (VED LN) (Vedanta) FY18 results, ended 31 March 2018, were within our expectation. EBITDA contribution...

Bondcritic

TATA Steel Could Retake Capacity Crown as 20% of Indian Steel Capacity up for Grabs

The Reserve Bank of India published a list of companies that has a collective outstanding debt value of around INR2,000bn during 2017. This list...

Gihan Bandara

Vedanta Resources: 9-Month Results on Track

Vedanta Resources PLC (VED LN) (Vedanta) 9M FY18 results, ended last December, were within our expectation. Zinc and oil businesses contributed 77%...

Bondcritic

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