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: Strong result driven by a recovery in travel and tourism boosted by renewable energy products. All divisions had double-digit trading profit growth. Bidvest released FY23 results. HEPS increased by 24% to 1790c off a 15% (acquisitive growth 2.3%) and...
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Key message: Another strong month for light commercial sales, but passenger sales impacted by stressed business and consumer environment. NAAMSA released August 2023 new vehicle sales. Passenger and LCV sales decreased 4.6% YoY with passenger sales down 6.7% YoY....
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Key message: Earnings expected to decline into FY24 as abnormally high margins dissipate as stock availability swings rapidly from under- to over-supply. Higher interest costs and tax rate will impact the bottom line. Motus released FY23 results, with revenue and...
Forestry & Paper: Industry Insights
Paper pulp prices mostly stable and producers announce price increases in Europe and China: Pulp prices in Europe softened 1% but were stable in the US and China. NOREXECO pulp futures for 24E imply a healthy improvement for hardwood prices in Europe (+12%) and China...
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Key message: Domestic demand weakened significantly in 2H, forcing low margin exports. Debt reduction is a focus going forward. KAP released FY23 results. HEPS declined 43% to 42.7c on a 6% increase in revenue but 19% decline in operating profit. The result was...
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Key message: Results well ahead of expectations as Bidcorp emerges from the Covid era in stronger shape and with more market share. Bidcorp released FY23 results. Revenue increased by 33% (+24% in constant currency) driven by price inflation and volume growth. Trading...
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Key message: Continued robust results despite a weak economy – client wins and market share growth a feature. SG Fleet performing well. Super Group released FY23 results, with HEPS increasing by 23% to 469.4c off a 31% and 21% increase in revenue and operating profit...
Forestry & Paper: Industry Insights
Mixed moves for paper pulp: Pulp prices in Europe continue to weaken (down 3-5%) and were stable in the US. Meanwhile, hardwood pulp continues to edge up in China (+1%). NOREXECO pulp futures for 24E imply a healthy improvement for hardwood prices in Europe, while...
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Key message: Price momentum carries Mpact through demand pressure, but MT investments provide growth opportunities. Mpact released 1H FY23 results. Revenue increased 8.7% due mainly to price increases (higher prices offset by a 10.2% decline in sales volumes). The...
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Key message: Another strong month for light commercial sales, but passenger sales feeling the pinch of higher interest rates. NAAMSA released July 2023 new vehicle sales. Passenger and LCV sales decreased 3.8% YoY with passenger sales down 11.5% YoY. Sales of...