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 PossibleMurray & Roberts – 1H FY24 Results
Key message: The business should be able to earn HEPS of approx. 50c in FY25 with the current assets and reduced costs. Murray & Roberts released 1H FY24 results. Continuing HEPS remained negative at 16c as revenue and EBIT increased by 11% and 16% respectively. A...
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Key message: A major restructuring over the next 18 months will see a return to core Mining and Chemical sectors. A doubling of core EBITDA by FY26 is a focus. AECI released FY23 results. HEPS declined by 12% on a 5% and 26% increase in revenue and EBIT, with net...
Cashbuild – 1H FY24 Results
Key message: We did some on the ground market research – until meaningful demand recovery occurs, margins are likely to stay low. Cashbuild released 1H FY24 results. Diluted HEPS declined 22% to 550c and a final dividend of 325c was declared. P&L goodwill and...
WBHO – 1H FY24 Results
Key message: Back to the low risk contracting model, the order book outlook looks promising for a margin uplift. WBHO released 1H FY24 results. Overall revenue and operating profit increased by 29% and 30% respectively with the operating margin flat at 4.8% as lower...
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Key message: After a cautious Trading Update in December, the result was better than expected with strong cost control across the group. Bidvest released 1H FY24 results. HEPS increased by 5.3% to 988c off an 8.8% (acquisitive growth 2.8%) and 11.8% (acquisitive...
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Key message: Passenger sales remain weak with 2024 set to be a tough year for the car market. Commercial sales continue to be resilient and exports ramp up from slow year end. NAAMSA released February 2024 new vehicle sales. Passenger and LCV sales decreased 1.8% YoY...
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Key message: Weak chemical margins impacted the result. The added contribution from the R2.5bn project expansions, a restructured Unitrans, and lower debt should boost results from FY25. KAP released a 1H FY24 results. HEPS declined 35% on a 2% and 17% decline in...
Forestry & Paper: Industry Insights
February price update: Pulp producers experienced a positive trend with prices rising by 6-8% in Europe and 4% in the US, although prices in China slightly decreased, with hardwood DP edging up by 2%. Conversely, graphic paper prices faced pressure, with most grades...
Afrimat – Pre-Close Update
Key message: Nkomati should contribute substantially in 2H as the mine output ramps up. Transnet issues negatively impacted iron ore. Afrimat hosted a pre-close update for FY24 and we followed up with management. Iron Ore: Local iron ore sales to AMSA fell in 2H due...
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Key message: Competitive pressure and higher finance costs impact profitability, but some post-Covid tailwinds have also dissipated. FY25 should be a relatively normalised year. Motus released 1H FY24 results, with revenue and operating profit increasing 11% and 1%...