Category

Credit

Daily Brief Credit: Twitter’s Banks Are Stuck With Largest Chunk Of Unsold LBO Debt and more

By | Credit, Daily Briefs

In today’s briefing:

  • Twitter’s Banks Are Stuck With Largest Chunk Of Unsold LBO Debt
  • Morning Views Asia: Kawasan Industri Jababeka

Twitter’s Banks Are Stuck With Largest Chunk Of Unsold LBO Debt

By Vicki Bryan

  • Twitter’s banks are stuck with 30% of total US LBO debt unsold debt.
  • The banks already had lost more than $500 million on Twitter’s LBO debt even before the deal closed. They could sell it even at 50-60 cents on the dollar.
  • The trouble with Elon aggressively blowing up Twitter is that it’s banks probably won’t take his calls when Twitter needs more cash—which it probably will in the near future.

Morning Views Asia: Kawasan Industri Jababeka

By Charles Macgregor

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.


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Daily Brief Credit: Morning Views Asia: Indika Energy and more

By | Credit, Daily Briefs

In today’s briefing:

  • Morning Views Asia: Indika Energy, Meituan

Morning Views Asia: Indika Energy, Meituan

By Charles Macgregor

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.


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Daily Brief Credit: Chinese Property Weekly – 25 November 2022 – Lucror Analytics and more

By | Credit, Daily Briefs

In today’s briefing:

  • Chinese Property Weekly – 25 November 2022 – Lucror Analytics
  • Weekly Wrap – 25 Nov 2022

Chinese Property Weekly – 25 November 2022 – Lucror Analytics

By Charles Macgregor

The Chinese Property Weekly focuses on providing updates in the Chinese real-estate sector, including recent regulatory and company developments, top and bottom performers, rating actions, as well as a list of bond maturities in the next 30 days.


Weekly Wrap – 25 Nov 2022

By Charles Macgregor

Lucror Analytics Weekly Wraps provide an overview of all Morning Views comments and reports published by our analyst team in the past week, and also showcase a list of the most-read reports.

In this Insight:

  1. China Jinmao Holdings
  2. Guangzhou R&F Properties
  3. Sunac China Holdings
  4. Evergrande
  5. Central China Real Estate

and more…


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Daily Brief Credit: Morning Views Asia: and more

By | Credit, Daily Briefs

In today’s briefing:

  • Morning Views Asia:
  • Skyworks Solutions Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report
  • Packaging Corporation of America: Detailed Credit Analysis & Financial Strength Evaluation Report
  • RPM International Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report
  • Wynn Macau – Tear Sheet – Lucror Analytics

Morning Views Asia:

By Charles Macgregor

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.


    Skyworks Solutions Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report

    By Baptista Research

    • Skyworks Solutions is a major supplier in the field of radio frequency (RF) components.
    • The company has been performing well financially off-late with its growth driven by its diversified portfolio and expanding set of customers.
    • Furthermore, the management delivered strong earnings in the automotive industry, with revenue strength emphasizing their connectivity and power isolation portfolio.

    Packaging Corporation of America: Detailed Credit Analysis & Financial Strength Evaluation Report

    By Baptista Research

    • Packaging Corporation of America (PCA) is a leading manufacturer of containerboard and corrugated packaging products in the U.S.
    • The company has had a decent financial performance despite supply chain issues and continues to receive good realizations from the implementation of its previously announced increase in price across all product lines, corrugated prices, and domestic containerboard.
    • PCA is also benefiting from its plants and mills through material usage initiatives and process efficiency optimization efforts.

    RPM International Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report

    By Baptista Research

    • RPM International is a well-known specialty chemicals company and has been performing well financially off-late as per its recent results.
    • As the company increased its market share, concrete mix and repair products have also experienced good growth in recent times.
    • In this report, we have carried out a fundamental analysis of the historical financial statements of the company.

    Wynn Macau – Tear Sheet – Lucror Analytics

    By Leonard Law, CFA

    We view Wynn Macau as “High Risk” on the LARA scale. The company has a good operating track record in the Macau gaming market, supported by two high-quality assets (Wynn Macau and Wynn Palace). Conversely, our view also takes into account the company’s geographical concentration and exposure to Chinese regulatory changes. Moreover, we consider the risks associated with the ownership by Wynn Resorts, given Wynn Macau’s history of paying large dividends to the parent company. Over the medium to long term, the Macau gaming industry should benefit from the rising affluence and discretionary income of China’s growing middle class. That said, the industry is facing challenges from the impact of the COVID-19 pandemic on tourism and consumers’ discretionary spending.

    Our fundamental Credit Bias on Wynn Macau is “Negative”, on account of its severely weakened leverage and the uncertain recovery trajectory. In addition, we are concerned that the company might resume dividend payments too quickly (before being able to generate and sustain positive FCF), which would be highly credit negative. Still, the company has adequate liquidity for now, with no debt maturities until October 2024. We also anticipate that Wynn Macau will successfully renew its concession agreement in December 2022.

    Controversies are “Immaterial”. In February 2018, founder Steve Wynn resigned as Chairman and CEO of Wynn Resorts, after he was accused of sexual misconduct. Mr Wynn sold his 11.8% stake in the company in March 2018. The Board also made major changes and removed directors with past links to Mr Wynn. In our view, Wynn Resorts acted promptly to limit reputational damage. We also deem Wynn Resorts’ corporate governance to have improved, as it is now run by professional managers and no longer has direct ties to its founder. Mr Wynn’s ex-wife, Elaine Wynn, is currently the largest shareholder of Wynn Resorts (8.4% stake).

    Some ESG-compliant funds may be prohibited from investing in Wynn Macau, due to the nature of its core business (casinos). That said, Macau’s gaming industry is established, transparent and highly regulated. We believe the curtailment of junket activities would help to further raise operators’ transparency. Moreover, the authorities are seeking to reduce the city’s reliance on gaming and promote leisure tourism in the medium term. These factors should mitigate ESG-related risks. Overall, the ESG Impact on Credit is “Neutral”.


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    Daily Brief Credit: Broadridge Financial Solutions Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report and more

    By | Credit, Daily Briefs

    In today’s briefing:

    • Broadridge Financial Solutions Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report
    • International Flavors & Fragrances Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report

    Broadridge Financial Solutions Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report

    By Baptista Research

    • Broadridge Financial Solutions is a well-known investor communications and technology-driven solutions provider for the financial services industry.
    • The company has had a decent financial performance in recent times and has seen a continuous expansion in investor positions, notwithstanding the market downturn.
    • Given their forward testing capabilities, Broadridge is confident of seeing steady growth in investor positions in the coming year.

    International Flavors & Fragrances Inc.: Detailed Credit Analysis & Financial Strength Evaluation Report

    By Baptista Research

    • International Flavors and Fragrances, commonly abbreviated as IFF, is one of the world leaders in the manufacture and distribution of cosmetic active and natural health ingredients for use in consumer products.
    • In spite of its volatile market environment, IFF continues to execute its operational priorities for achieving strong bottom and top-line results.
    • It also continues to progress against its portfolio optimization efforts, having completed successfully the divestiture of its Microbial Control business.

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    Daily Brief Credit: Morning Views Asia: Vedanta Resources and more

    By | Credit, Daily Briefs

    In today’s briefing:

    • Morning Views Asia: Vedanta Resources

    Morning Views Asia: Vedanta Resources

    By Charles Macgregor

    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.


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    Daily Brief Credit: Softbank Group – Earnings Flash – Q2 FY 2022-23 Results – Lucror Analytics and more

    By | Credit, Daily Briefs

    In today’s briefing:

    • Softbank Group – Earnings Flash – Q2 FY 2022-23 Results – Lucror Analytics
    • Morning Views Asia: NagaCorp Ltd, Sino-Ocean Service

    Softbank Group – Earnings Flash – Q2 FY 2022-23 Results – Lucror Analytics

    By Trung Nguyen

    Softbank Group (SBG) has delivered acceptable Q2/22-23 results. Despite the large loss on investments, the company monetised an even greater amount of Alibaba shares to record a large quarterly net gain. As a result, the financial risk profile did not deteriorate. LTV was mostly stable q-o-q, improving since March 2022. Liquidity has strengthened, and now covers four years of planned bond redemptions.

    The significant debt reduction and acceleration of share buybacks showed that SBG is trying to balance shareholders’ and creditors’ interests. In the past, SBG appeared more aligned towards shareholders’ interests, with frequent mentions of the share price’s discount to NAV, as well as large share purchases since 2016.


    Morning Views Asia: NagaCorp Ltd, Sino-Ocean Service

    By Charles Macgregor

    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.


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    Daily Brief Credit: Morning Views Asia: Central China Securities and more

    By | Credit, Daily Briefs

    In today’s briefing:

    • Morning Views Asia: Central China Securities, Country Garden Holdings Co, Longfor Properties

    Morning Views Asia: Central China Securities, Country Garden Holdings Co, Longfor Properties

    By Charles Macgregor

    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.


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    • ✓ Events & Webinars

    Daily Brief Credit: Weekly Wrap – 11 Nov 2022 and more

    By | Credit, Daily Briefs

    In today’s briefing:

    • Weekly Wrap – 11 Nov 2022
    • Chinese Property Weekly – 11 November 2022 – Lucror Analytics

    Weekly Wrap – 11 Nov 2022

    By Charles Macgregor

    Lucror Analytics Weekly Wraps provide an overview of all Morning Views comments and reports published by our analyst team in the past week, and also showcase a list of the most-read reports.

    In this Insight:

    1. China Jinmao Holdings
    2. Guangzhou R&F Properties
    3. Sunac China Holdings
    4. Evergrande
    5. Central China Real Estate

    and more…


    Chinese Property Weekly – 11 November 2022 – Lucror Analytics

    By Charles Macgregor

    The Chinese Property Weekly focuses on providing updates in the Chinese real-estate sector, including recent regulatory and company developments, top and bottom performers, rating actions, as well as a list of bond maturities in the next 30 days.


    💡 Before it’s here, it’s on Smartkarma

    Sign Up for Free

    The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

    • ✓ Unlimited Research Summaries
    • ✓ Personalised Alerts
    • ✓ Custom Watchlists
    • ✓ Company Data and News
    • ✓ Events & Webinars

    Daily Brief Credit: Morning Views Asia: Wynn Macau Ltd and more

    By | Credit, Daily Briefs

    In today’s briefing:

    • Morning Views Asia: Wynn Macau Ltd
    • Tata Motors – Earnings Flash – Q2 FY 2022-23 Results – Lucror Analytics

    Morning Views Asia: Wynn Macau Ltd

    By Charles Macgregor

    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.


    Tata Motors – Earnings Flash – Q2 FY 2022-23 Results – Lucror Analytics

    By Trung Nguyen

    Tata Motors’ Q2/22-23 results were better than expected, with reasonable improvement in revenue and earnings. That said, this was partly due to the low base effect last year, owing to COVID-19. The financial risk profile has improved slightly, on the back of the higher earnings and stable debt. Liquidity appears to be adequate, especially at Jaguar Land Rover (JLR).

    The operating environment will likely remain difficult in FY 2022-23, and possibly for even longer. While we derive comfort from the growing order book, this accounts for only c. 50% of full-year deliveries for now, and is hence insufficient to provide firm revenue visibility. Still, the order book development indicates that demand for JLR’s vehicles is exceeding its ability to deliver.


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