Chronux Research

The leading independent research firm in South Africa

Chronux Research, founded in 2020, is an independent equity research provider focused on the South African market, with coverage spanning over ten sectors and approximately 30 companies. Within the domestic market, Chronux is particularly well recognised for its Industrials, Construction, Mid-Cap and Forestry & Paper research, where the firm combines deep sector knowledge with disciplined financial modelling and a clear, conviction-led investment framework. The team provides a global perspective on key structural and cyclical themes across the sectors covered. Chronux delivers fundamental equity research incorporating both long and short ideas with analysis driven by in-house financial models, ongoing dialogue with industry decision-makers and regular engagement with management teams. In addition to company-level research, Chronux facilitates high-level interaction with senior executives and provides access to relevant industry experts, supporting clients in forming differentiated investment views. Chronux has also been committed to developing the next generation of analysts and advancing careers within the investment industry, supported by a strong and engaged institutional client base.

Our Corporate Sponsored Coverage

Making It Possible

Restricted content

Foodservice – No Change in Spots Key message: The Foodservice market has proved to be resilient and has not faced structural changes due to Covid restrictions. Activity levels are back at 90% of prior periods. Bidcorp released FY20 results. Revenue fell by 6.3% (down...

Restricted content

Key message: A shift to a new business model brings risk. An acquisition-led growth strategy in and around Africa is brave – we are concerned the increased complexity and risk is not well understood. Imperial Logistics released FY20 results. Continuing revenue...

Sasol: Too soon to reset the investment case

Larger than expected rights issue?   Sasol ended FY20 with $10.2bn of net debt.  If the business is targeting debt reduction of $6bn to $4bn an additional $6bn of cash is required.  After $1bn of cash savings and asset sales of $3bn a further $2bn...

Suzano: Q2 20A Insights (Pulp)

Q2 20A saw adjusted EBITDA increase by 35% y/y (38% q/q): This was driven by the Pulp segment, where sales volumes increased by 25% y/y (-3% q/q) supporting a robust EBITDA margin of 52%, despite bottom of cycle pulp pricing. Unfortunately, bottom line looks messy due...

Sasol: Spotlight on earnings – latest profit drivers

Spot earnings increases slightly to R10.77/share this week as refining margins in particular moved higher.  Refining margins remain well below normal levels, however.  Spot earnings for the LCCP is at a loss of R4.82/share.Ethylene prices continue to fall in...

Restricted content

Key message: Long a trusted distributor of industrial parts, Invicta has been impacted by non-operational issues in recent years. A renewed focus under a new CEO should refocus the Group on core activities. Invicta has been impacted by a number of non-operational...

Sasol: Spotlight on earnings – latest profit drivers

Sasol’s spot earnings increased sharply this week, boosted by higher oil prices as well as a weaker rand.  Spot earnings for the group is at R10.61/share while the LCCP earns a loss of R4.53/share.  Refining margins continue to weaken, however.Asian...

Mondi: H1 20A Key Thoughts

Dividends resume: As with Smurfit Kappa, MNP resumed dividends in line with its stated dividend policy (2-3x underlying EPS). Last dates to trade cum-dividend are 18 August (JSE) and 19 August (LSE). FY 19A and H1 20A DPS yield 3%.Strong Corrugated performance (36% of...

Lenzing: Q2 20A Insights (VSF & DWP)

Q2 20A revenue -35% y/y (-26% q/q) and EBITDA -70% y/y (-61% q/q): Margins collapse to 7.9% as textile fibre revenue declines by 58% y/y(-50% q/q), which shadowed the increase in non-woven fibres revenue of +8% y/y (+12% q/q).Central European wood market is still...

Cashbuild Acquisition of The Building Company (TBC)

Key message: Cashbuild has made a large acquisition, but TBC does fill in some important gaps in the building supply market for Cashbuild. Cashbuild announced the acquisition of 100% of The Building Company (TBC) from Pepkor Holdings for R1.074bn, including R2.929bn...