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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Making It PossibleForestry & Paper: Industry Insights
Paper pulp prices stable this week except for hardwood in Europe, up 1% w-o-w: NOREXECO pulp futures keep edging up and for 24E imply a healthy improvement for hardwood prices in Europe (+17%) and China (+4%). Europulp statistics for August reveal that stocks of...
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Key message: Earnings stability expected in a tough market. Cash generation remains strong. We spoke to Invicta management prior to the closed period for 1H FY24. While trading conditions have been tough, volumes have largely been maintained and pricing has...
PPC – Trading Update
Key message: Margins stabilising in SA Cement and signs of volumes bottoming. Price increases are sticking – any volume growth will boost earnings considerably. PPC released a Trading Update for the five months to August 2023. Cement South Africa and Botswana: Sales...
Cement Import Monitor Imports to July 23
Key message: Imports stable relative to 2022. The weak ZAR has resulted in imported cement prices increasing 14% YTD. January to July 2023 saw imports of 537kt, flat compared to the same period in 2022. Cement imports fell 31% to 730kt for CY22. Cement imports to July...
Cashbuild – FY23 Results
Key message: Difficult trading environment affects revenue and lowers margins from post-Covid DIY/building market boom period. Some green shoots appearing though in construction materials market. Cashbuild recently released FY23 results. HEPS declined 39% to 1222c on...
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Key message: Grindrod has a number of growth opportunities in ports, shipping and rail. While coal contributed well to recent periods, other commodities offer MT volume growth. Grindrod released 1H FY23 results. Revenue and EBITDA from core operations grew by 32% and...
WBHO – FY23 Results
Key message: The Australian exit is complete, and activity levels in all regions are picking up. Back to business as usual for WBHO. WBHO released FY23 results. Overall revenue and operating profit increased by 38% and 30% respectively with the operating margin...
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Key message: Weaker volumes as energy solutions replace home improvements amid lower general consumer spending. An expected improved operational performance in FY24 should recover market share. We update our forecast after the release of the FY23 results. Revenue...
Afrimat – Pre-Close Update
Key message: Nkomati ramping up (with a minor delay) and will contribute approx. R500m to operating profit. Afrimat hosted a Pre-Close Update. We make minor updates to our model follow this update. Apart from the pending Lafarge acquisition (Competition Commission...
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Key message: The business should be able to earn HEPS of approx. 50c in FY25 with the current assets and a restructured financial structure. This indicates significant upside from current levels. Murray & Roberts released FY23 results. Continuing HEPS fell to a...