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.

High Yield Experts

Senior Credit Analyst, Lucror Analytics

Trung Nguyen

Senior Credit Analyst

Credit

We view Jababeka as “High Risk” on the LARA scale, mainly due to the weak real estate market and the uncertainty associated with the gas-fired power plant (almost half of revenue). The latter stems from the possibility that offtaker PLN will renege on its take-or-pay contract, due to the state of overcapacity for electricity in Java. The plant is occasionally placed in reserve shutdown mode. Jababeka is also suffering on account of the weak real estate market in Indonesia, with poor marketing sales. Other than that, we like the mature Kota Jababeka township, where the land bank may be worth more than its book value. We view positively the company's exposure to industrial real estate (housing 1,500 businesses), which is faring better than residential real estate in Indonesia, and as well as the partnership with Sembcorp on the Kendal project. In addition, Jababeka's land bank is the largest among Indonesian HY property peers. Overall, we like the business profile, which has large recurring revenue from the infrastructure segment, especially the power plant. Our fundamental Credit Bias on Jababeka remains "Negative", given the impact of COVID-19 on the already weak real estate market.  We view Jababeka’s corporate governance as “Weak” on the LAGA scale, mainly on account of the shareholders' dispute in 2019 and the debt restructuring in 2001-2002.

  We view Jababeka as “High Risk” on the LARA scale, mainly due to the weak real estate market and the uncertainty associated with the gas-fired power plant (almost half of revenue). The latter stems from the possibility that offtaker PLN will renege on its take-or-pay contract, due to the state of overcapacity for electricity in Java. The plant is occasionally placed in reserve shutdown mode. Jababeka is also suffering on account of the weak real estate market in Indonesia, with poor marketing sales. Other than that, we like the mature Kota Jababeka township, where the land bank may be worth more than its book value.   We view positively the company's exposure to industrial real estate (housing 1,500 businesses), which is faring better than residential real estate in Indonesia, and as well as the partnership with Sembcorp on the Kendal project. In addition, Jababeka's land bank is the largest among Indonesian HY property peers. Overall, we like the business profile, which has large recurring revenue from the infrastructure segment, especially the power plant.   Our fundamental Credit Bias on Jababeka remains "Negative", given the impact of COVID-19 on the already weak real estate market.    We view Jababeka’s corporate governance as “Weak” on the LAGA scale, mainly on account of the shareholders' dispute in 2019 and the debt restructuring in 2001-2002. 

Kawasan Industri Jababeka

Jababeka - Tear Sheet - Lucror Analytics