Chronux Research
The leading independent research firm in South AfricaChronux 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 PossibleStora Enso’s Q2 20A Insights
Q2 20A hit the hardest from COVID-19 in its Paper business: Sales declined by 18.9% y/y (-11.9% excl. Paper), while group EBIT margin was stable at 13% excluding the Paper segment. Selling prices trended lower for most grades and volumes were under pressure with the...
Sasol: Spotlight on earnings – latest profit drivers
Sasol’s spot earnings are slightly higher this week as the oil prices moved higher. Crack spreads were lower, however. Spot earnings for FY21 are at R8.69/share and at spot prices the LCCP earns a loss of R4.31/share.Polyethylene prices were higher in...
Sasol: Selling ROMPCO – a quick financial win but…
Large asset for sale: Sasol has indicated that it is far advanced in the sale of its 50% share in Rompco, the company that owns the pipeline that transports gas from Mozambique to Sasol’s site in Secunda.Key to feedstock delivery: Rompco transports almost...
Grasim (VSF producer): Textile Fibre Insights
COVID update: India is getting worse (Mumbai cases spiking as well as new areas), which is being accentuated by monsoon season. Despite this, they see another lock down unlikely. COVID could mean less reliance on China: Global players may look to reduce their reliance...
Sasol: Spotlight on earnings – latest profit drivers
Sasol’s spot earnings are lower this week, mainly due to a stronger R/$ exchange rate as well as a lower oil price. Spot earnings for FY21 are at R7.93/share with earnings for FY21 falling back into a loss.Chemical prices were generally flat in Asia but US...
Sappi Ltd: Capacity rationalisation update
EPS impact of closures: USD 0.05/share boost in FY 21e. Cash impact of closures: USD 28m cash impact of closures (USD 0.05/share or 1.5% of net debt). Non-cash charges expected to total USD 17m. Stockstadt mill (Europe): In line with expectations, Sappi confirmed...
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Key message: In a tough market balance sheet and cost management was good – Barloworld is more cost focused than before. Barloworld released 1H FY20 results. Revenue declined by 12.2% (down 6% excl. the impact of NMI deconsolidation). Operating profit declined by 28%...
DS Smith: European Packaging Insights
FY 20A results (revenue: -2%; EBIT: +5%, EPS -1%) saw strong margin expansion despite top line pressure: COVID-19 shaved GBP 15m (2.3%) off EBIT, impacting March and April. North America lagged the group, with margin contraction of 842bps y/y as domestic performance...
Sasol: Spotlight on earnings – latest profit drivers
Oil prices and refining margins moved higher this week. Spot earnings for FY21 were however lower following our earnings adjustment on FY20 closing rates. We now expect lower mark to market hedge losses in FY20 but lower gains in FY21 (link).Chemical...
Sasol: FY20 ending slightly better than expected
Higher and lower earnings: We have adjusted our HEPS estimates to reflect the closing exchange rates and oil prices at FY20 balance sheet date. We now expect earnings of R5.80/share in FY20 compared to a loss of R6.86/share previously. Our FY21...