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: We initiate on CMH with a Target Price of R30. CMH is a well-run business with no frills – resulting in peer-leading margins. We initiate on Consolidated Motor Holdings (CMH). CMH enjoys industry leading margins in both car retail and rental through a...
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Key message: Passenger sales remain weak with 2024 set to be a tough year for the car market. NAAMSA released May 2024 new vehicle sales. Passenger and LCV sales decreased 13.7% YoY (although down 9.6% on a sales per day basis) with passenger sales down 11.5% YoY....
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Key message: Strong Leasing result balanced the expected margin decline in used car sales in the Rental division. Zeda released 1H FY24 results. HEPS declined 12.5% to 165.5c on a 19% and 7.5% increase in revenue and EBITDA respectively. Net interest costs increased...
Forestry & Paper: Industry Insights
The pulp market is experiencing further price increases: Arauco, following the trend set by other Brazilian producers, has announced a $30/t increase for hardwood pulp prices to China, effective from June 1. In North America, further pulp price hikes are on the...
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Key message: Reunert is benefiting from an increase in capacity utilisation of its manufacturing divisions, and this should be margin accretive. Reunert released 1H FY24 results. Revenue increased by 7% and segment operating profit declined 2%. HEPS increased 8% to...
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Key message: Mongolian growth balances declines in other divisions. Barloworld released 1H FY24 results. HEPS declined 8% to 532c on an 8% and 12% decline in revenue and operating profit from core activities respectively. The dividend was increased by 5% to 120c....
Forestry & Paper: Industry Insights
Pulp prices broadly stable in Europe and China, while further ground was gained in the US (+3%): Eldorado's first quarter results revealed a 17% year-on-year increase in pulp volumes sold, although there was a 4% decrease quarter-on-quarter. The company highlighted...
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Key message: The business model continues to allow for steady constant currency growth. Bidcorp released a Trading Update for the 10 months to April 2024. Constant currency sales increased by 8.8% through the period. Selling inflation was 2.6% and currency volatility...
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Key message: We update our forecasts after the good set of maiden results. WeBuyCars released maiden 1H FY24 results. Core HEPS increased by 26.1% to 120c on a 15.9% and 21% increase in revenue and adjusted EBITDA. The core result is calculated after adding back the...
Afrimat – FY24 Results
Key message: With Nkomati starting to contribute as planned and Lafarge integrated in April 2024, growth into FY25 should be achieved. Afrimat released FY24 results, with HEPS increasing 24% to 567.3c on a 24% increase in revenue and 20% increase in operating profit....