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

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

Yuzhou’s H1/21 results are within our expectations. There was recovery in revenue recognition and margins, although they were still weak. The company has significant exposure to JVs, and we believe that the low rate of consolidation will not be resolved soon, given the consolidation and attributable portions in the company’s land reserve. Positively, the liquidity profile continues to be adequate, and Yuzhou has detailed its refinancing plan for short-term debt. The company does not face any immediate refinancing pressures. We view positively the company's prudent expansion pace in H1/21. Yuzhou has breached two out of the Three Red Lines requirements, limiting its debt growth at 5%. Management stated that it does not intend to increase the debt level in FY 2021. The company's Cash/Short-term Debt is 1.2x, Net Debt/Equity is 115% (vs. 100% under the Three Red Lines policy) and Liabilities/Asset excluding customer advances is 75% (vs. 70%).

  Yuzhou’s H1/21 results are within our expectations. There was recovery in revenue recognition and margins, although they were still weak. The company has significant exposure to JVs, and we believe that the low rate of consolidation will not be resolved soon, given the consolidation and attributable portions in the company’s land reserve.   Positively, the liquidity profile continues to be adequate, and Yuzhou has detailed its refinancing plan for short-term debt. The company does not face any immediate refinancing pressures. We view positively the company's prudent expansion pace in H1/21.   Yuzhou has breached two out of the Three Red Lines requirements, limiting its debt growth at 5%. Management stated that it does not intend to increase the debt level in FY 2021. The company's Cash/Short-term Debt is 1.2x, Net Debt/Equity is 115% (vs. 100% under the Three Red Lines policy) and Liabilities/Asset excluding customer advances is 75% (vs. 70%). 

Yuzhou Group - 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-35'>China Jinmao Holdings</a></li><li><a href='#lucror-entity-9757'>Fantasia Holdings Group Co</a></li><li><a href='#lucror-entity-26799'>Future Retail Ltd</a></li><li><a href='#lucror-entity-14882'>Seazen (Formerly Future Land)</a></li><li><a href='#lucror-entity-14152'>Yanlord Land</a></li><li><a href='#lucror-entity-26198'>Luzhou Xinglu Water Group -H</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 Jinmao HoldingsFantasia Holdings Group CoFuture Retail LtdSeazen (Formerly Future Land)Yanlord LandLuzhou Xinglu Water Group -H

Morning Views Asia: China Jinmao Holdings, Fantasia Holdings Group Co, Future Retail Ltd

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

The Asia HY Trade Book for the month of July 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 July 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 - July 2021 - Lucror Analytics

China

Yuzhou Group Holdings Company Limited develops residential properties in southern China.

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Yuzhou Group (1628 HK)

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

Yuzhou Group - Earnings Flash - H1 FY 2021 Results - Lucror Analytics

Yuzhou’s H1/21 results are within our expectations. There was recovery in revenue recognition and margins, although they were still weak. The...

Lucror Analytics

Morning Views Asia: China Jinmao Holdings, Fantasia Holdings Group Co, Future Retail Ltd

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

Asia HY Trade Book - July 2021 - Lucror Analytics

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

Lucror Analytics

Price Gauge

52-week Range

Market Cap (USDm)

P/E

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