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
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Key message: Margins remain low as cement prices are kept competitive to attract customers through the doors. Cashbuild released 1H FY25 results. Diluted HEPS increased 4% to 573c and a dividend of 326c was declared. Customer transactions increased 3% in Q1 and 8% in...
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Key message: Investments in capacity should ensure organic growth over the medium-term. Mpact released FY24 results. Revenue increased 3.6% with sales volumes up 1.6%. The gross margin declined to 38.4% (from 40.7%). EBIT declined by 24% with margins down to 6.9%...
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Weekly wrap-up: Graphic paper margins continue to face pressure as rising paper pulp prices weigh on the European market. Graphic paper prices declined further, with uncoated woodfree seeing the steepest drop. Despite recent price increases, testliner softened by...
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Key message: Italtile is responding to increased competition by improved operational efficiencies and new products. Italtile released 1H FY25 results. System-wide revenue (including franchises) declined by 1% with a decline in Manufacturing revenue. Trading profit...
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February Wrap-Up: Hardwood paper pulp prices rose +6% MoM (-2% YoY), posing a challenge for non-integrated producers like Sappi Europe. In China, paper pulp prices also increased by +3%, while hardwood dissolving pulp softened by -2% MoM but remained up +4% YoY. In...
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Key message: Back to the low risk contracting model, the order book outlook looks promising for a margin uplift. WBHO released 1H FY25 results. Overall revenue and operating profit increased by 10% and 20% respectively with the operating margin increasing to...
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Key message: Debt reduction and benefits from expansions and restructuring over the medium term underpin expected earnings growth. KAP released 1H FY25 results. Revenue increase by 2% but operating profit declined by 8% with increased operating costs for the new PG...
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Key message: Competition in the retail market was offset by the growing aftermarket business and lower finance costs. Motus released 1H FY25 results, with revenue and operating profit declining 2% and 4% respectively with operating margins falling to 4.5% (from 4.6%)....
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New Vehicle Sales – February 2025 Key message: Sustained momentum in passenger sales with mixed performance from commercial vehicles. NAAMSA released February 2025 new vehicle sales. Passenger and LCV sales increased 6.5% YoY with passenger sales up 16.8% YoY. Light...
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Key message: FY25 will be impacted by restructuring costs but the target of doubling EBITDA by FY27 is still intact. AECI released FY24 results. HEPS declined by 37% to 716c on a 4% and 13% decline in revenue and EBITDA as large restructuring costs (R860m) and a high...