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.
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Further pressure on paper pulp prices in China and Europe: Hardwood softened by -1.5% in China this past week, while softwood was broadly stable. Europe too saw prices decline further, with both hardwood and softwood easing by over -1%. Norexeco futures imply further...
AfroCentric Investment Corporation: FY 24e Trading Update
Key points from the statement: - Stable medical scheme administration: This segment, which contributed 54% to FY 23A operating profits, has remained steady with growth in various public and private schemes. - Pharmaceutical Cluster challenges: The impairments are...
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Paper pulp prices came under further pressure in Europe and North America (-$20/t) this past week, while prices in China were broadly stable: PPPC statistics for June revealed that days of supply remained stable at 43 days, with shipments declining by -4% YoY (+6%...
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Pulp prices in Europe are now starting to show signs of weakening: The recent update on pulp prices indicates significant downward pressure in both Europe and China, following earlier declines in China. Specifically, in Europe, softwood pulp prices have decreased by...
Forestry & Paper : Sappi 3Q 24E Insights
Sappi to report 3Q 24e results on Thursday, 8 August at 8am: With planned maintenance impacting SA (-$10mn) and North America (-$20mn), and the seasonal slowdown in Europe coupled with elevated paper pulp prices, we expect margins across all regions to be softer QoQ....
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Key message: Investments in capacity should ensure organic growth over the medium-term. Volumes remain low but a recovery is expected off a low base into FY25. Mpact released 1H fy24 results. Revenue decreased 1.1% due mainly to lower volumes (-2.1%). The gross margin...
Auto Anemometer: New Vehicle Sales – July 2024
Key message: Welcome uptick in passenger sales could signal recovery in second half of the year for the car market. NAAMSA released July 2024 new vehicle sales. Passenger and LCV sales increased 2.0% YoY (although down 6.8% on a sales per day basis) with passenger...
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ArcelorMittal South Africa – 1H FY24 Results Key message: 1H impacted by blast furnace shutdowns at Vanderbijlpark. A recovery in local demand and reduced imports would be catalysts for profit growth. AMSA released 1H FY24 results. A HEPS loss of 100c was reported on...
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Key message: Large restructuring costs will impact FY24 and FY25, but the target of doubling core EBITDA by FY26 remains. AECI released 1H FY24 results. HEPS declined by 57% on a 4% and 24% decline in revenue and EBITDA as large restructuring costs (R422m) and a high...
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Mondi 1H 24e results tomorrow: We anticipate EBITDA of €516mn (€486mn excluding the forestry fair value gain). This implies a significant sequential improvement in underlying EBITDA of +41% QoQ (-8% YoY). We expect basic underlying EPS of €0.44/share, down -35% YoY....