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 PossibleSasol: Spotlight on earnings – latest profit drivers
Spot prices still point to heavy losses in FY21 (R25.09). Key drivers remain the low oil price, compounded by weak crack spreads. All chemical prices are lower than our expectations.Refining margins are higher and approaching zero, but diesel cracks remain...
Restricted content
Key message: The impact of a sudden decline in volumes on operating margins was illustrated recently by peer foodservice company Sysco. We adjust our Bidcorp numbers based on the Sysco experience. Following our previous adjustments for the Covid-19 impact we make...
IP Packaging and UWF Insights
Their focus remains on maximising value and not necessarily integration: 1 in 3 boxes in the US is from IP and they are the # 1 non-European supplier of kraftliner into Italy, Spain and Southern France. In the last five years, they have invested to improve...
Restricted content
Key message: The Motus business model does rely heavily on used car profits. In an environment of rapidly declining residual values, this business model may be tested. Car rental companies have been impacted globally by Covid induced restrictions on business and...
International Paper Q1 20A Insights
Industrial Packaging (NA Corrugated Packaging & Containerboard export): Q1 US box shipments increased by 3% y/y (March: +4.7%). They saw strong export containerboard demand in Q1 and expect this to continue in Q2 across all regions; however, expect demand in...
Sasol: Spotlight on earnings – latest profit drivers
Spot prices still point to heavy losses in FY21 (R27.74/share). Key drivers remain the low oil price compounded by negative crack spreads. All chemical prices are lower than our expectations.Oil prices and refining margins increased in the last week, but...
Restricted content
Key message: Peer company Sysco reported 3Q results. While gross margins held, operating margins fell substantially due to restaurant closures. Sysco has cut its workforce by 33% to reduce costs. Sysco (SYY-USA) reported 3Q FY20 results to 28 March 2020. The results...
Restricted content
Key message: The PHS deal has been completed, but Bidvest appear to have walked away from the Eqstra deal. The right deal has been consummated, in our opinion. Bidvest announced the confirmation of the acquisition of PHS Group, the number one hygiene service provider...
Corona Chronicles – Charts to Watch
Key message: We highlight interesting charts and articles from around the world. See charts here
Restricted content
Key message: Vehicle sales collapse in April with dealers closed for the entire month. Level 4 allows only for emergency automobile repairs and component sales, with car sales allowed only under “specific directions”. NAAMSA released April 2020 new vehicle sales....