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

PPC: FY21 Earnings Examined

Key message: We look at FY21 potential earnings as lockdowns ease. A loss at the HEPS level is likely, but debt covenants are not breached. PPC has delayed reporting FY20 results to no later than 31 August 2020. In this report we adjust our FY21 forecasts to reflect...

Navigator Q1 20A: Europe UWF market leader

Turnover -3.8% y/y & EBITDA -15.7% y/y (+23% q/q): Higher volumes in all segments (Paper 4%; Pulp 34%; Tissue 10%). Lower production costs not enough to offset lower pulp and paper prices. However, EBITDA margin +442bps q/q to 21.8%. Strong UWF order book in Q1...

Sasol: What to make of the investment case

A presentation pack where we assess the current Sasol investment case and also evaluate the measures management is taking to address the stress in the balance sheet. Download

Sasol: Spotlight on earnings – latest profit drivers

Sasol’s FY21 spot HEPS ‘increases’ to a loss of R1.91 this week as oil prices, refining margins and chemical prices increased.  The gains from these increases are partly offset by a stronger rand and higher ethane prices.Ethylene prices continue to rise but...

Nampak 1H FY20 Results

Key message: Weakness in all regions before any Covid-19 impact means cash flows remain under pressure, and currency liquidity in Angola and Nigeria is deteriorating. Debt covenants remain a concern, with a relaxation most likely required for year-end.   Nampak...

WBHO – Trading Statement

Key message: A big negative surprise in Australia…….again. An announcement that Probuild has had an unsolicited offer may signal a full retreat from Australia – and that is probably the right move. WBHO released a Trading Statement covering the Covid-19 impact and...

Raubex FY20 Results

Key message: There is a relatively high probability that government will use SANRAL to kickstart infrastructure spending as a stimulus for the economy. Long overdue, this would boost the road construction sector. Raubex reported FY 20 results. Revenue and operating...

Auto Anemometer: New Vehicle Sales – May 2020

Key message: Vehicle sales recover slightly in May after a total collapse in April. NAAMSA released May 2020 new vehicle sales. Total vehicles sales declined by 68%, with passenger sales down 65.4%. Vehicle exports declined by 64.1%. Light Commercial sales declined by...

Restricted content

Key message: Management point to an unsatisfactory result even before the lockdown. Continued portfolio rationalisation points to a struggling core business – hence the desire to grow into a new sector (international freight management). Imperial Logistics hosted an...

Restricted content

Key message: Remarkable ability to cut operating costs as revenue falls due to Covid-19. The portfolio will have its ups and owns but generally looks set to sail through the Covid era unscathed. Bidvest released a Trading Statement for the ten months to April 2020.The...