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: Balance sheet action plan – first thoughts
Sasol published an action plan to protect its balance sheet and also re position the company to withstand lower oil prices for longer. The company is targeting to generate $6bn by the end of FY21, much higher than our earlier estimate of $5bn. Key...
Lenzing Q4 19A: VSF specialty leader
COVID-19 impact short lived (2 weeks) on their Chinese ops: Site continued through the Chinese New-Year (hence employees didn’t return home). However, due to road restrictions, there were some issues in terms of inbound logistics (2 weeks) and had to shut two of their...
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Key message: Unprecedented volatility. Beware companies with too much operational gearing. The Construction Sector emerging as a potential safe haven (how times change!). The short-term outlook for the global economy is very clouded. Extreme measures to curb mobility...
Sasol: Update – chemical prices lower, yields higher
Petrochemical prices: Petrochemical prices are usually published early on a Monday morning. Petrochemical prices for last week were reported lower following the decline in the oil price of the previous week. Asian ethylene prices declined by almost...
PPC – Can It Pull Through?
Key message: We examine the ability of PPC to withstand current weak markets and do some scenario analysis around debt covenants. We conclude PPC still has a robust Southern African operation able to withstand even weaker markets before covenants are tested. Cement...
Sasol: Spotlight on earnings – latest profit drivers
Calculating spot earnings seem superfluous after the oil and share price decline the company saw during the week. The market is pricing in a high probability of a liquidity event - a covenant breach and lenders calling their money back. Our views are here...
Sasol: Many wrongs make a rights issue
Investment case compromised: The Sasol investment case has been compromised by budget overruns and delays at Lake Charles, unmanageable debt levels, falling oil and chemical prices and an unwillingness to hedge oil prices at higher levels.Market concerns...
Raubex – Trading Statement for FY20
Raubex Trading Statement for FY20 Key message: Road work continues to be at very low levels, but recent tenders from SANRAL seem to indicate the potential for a significant boost in a relatively uncompetitive environment. Raubex released a Trading Statement for FY20....
Sasol: Oil at $35/bbl – Equity holders at risk
A step down in oil prices: Following Russia’s rejection of OPEC’s proposal to cut oil production the oil price dropped by 25% and has traded below $34/bbl. The rand has also weakened significantly overnight, trading at R16.32/$. The lower oil...
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Bidvest – 1H FY20 Results Flat with a Hint of Growth Key message: A noisy result, but underlying performance flat in a weak market. Growth through acquisition (PHS, Eqstra) and organic (LPG tanks) in FY21 provide some upside potential. Post results we update our...