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: Resilient performance in tough market – with strong performance from Engineering Consumables. Hudaco reported FY23 results. Revenue and operating profit increased 9% and 5% respectively. HEPS increased 7% and a final dividend of 700c was declared. Organic...
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Key message: Passenger sales remain weak with 2024 set to be a tough year for the car market. Commercial sales up as more goods are forced onto roads from rail. NAAMSA released January 2024 new vehicle sales. Passenger and LCV sales decreased 5.7% YoY with passenger...
Forestry & Paper Sappi Ltd ESG Insights ahead of the AGM
Sappi’s AGM will be held on Wednesday, 07 February 2024 at 14:00: The last day to trade in order to be eligible to attend and vote at the AGM is Tuesday, 30 January 2024. Refer to page 3 for the proposed resolutions. Sappi continued to make progress in terms of...
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Key message: We expect flat HEPS growth as the impact of lower ammonia prices is balanced by volume growth, no hyperinflation losses in Zimbabwe and a lower tax rate. We update our forecasts for Omnia after meeting with management. FY24 should deliver a fairly...
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Key message: The high operational gearing of Motus is evident in this update – coming off elevated margins and low finance costs of the Covid-era. Motus released a Trading Update for 1H FY24. HEPS is expected to fall 20-30% as weak consumer demand and an oversupply of...
Forestry & Paper: Industry Insights
Paper pulp prices in Europe advance 3-4%: NOREXECO pulp futures for 24E infer that hardwood prices in China should fall around 4% in 2024, with some upside for prices in Europe (hardwood +2% & softwood: +1%). UTIPULP statistics for December revealed that...
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Key message: Good updates from the Port of Maputo indicate another strong year, balancing a weaker Logistics performance. We update our Grindrod earnings after the end of the year and updates from the Ports & Terminals division. Grindrod’s bulk terminal at the...
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Key message: Inability to out-perform 2019 pre-pandemic levels in CY23 with fifth consecutive month of year-on-year decline of new vehicle sales. NAAMSA released December 2023 new vehicle sales. Passenger and LCV sales decreased 3.8% YoY with passenger sales down 3.9%...
Forestry & Paper: Industry Insights
Mixed moves for pulp prices: NOREXECO pulp futures for 24E infer the pulp rally is complete in China, with some upside for prices in Europe (hardwood +7% & softwood: +4%). Suzano and Eldorado have announced further BEK price increases ($10/t in China and $80/t in...
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Key message: If the Steel Master Plan was followed as agreed by the parties involved, AMSA’s Newcastle plant would probably not have to close. This is a pattern for government – often sensible policy completely ignored. ArcelorMittal South Africa (AMSA) has announced...