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: No loadshedding surprises – Mpact’s manufacturing operations appear to be relatively resilient. Price increases are more than balancing general weak demand. Mpact released a Trading Update for 1H FY23. HEPS from continuing operations is expected to...
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Key message: Concerns over Koeberg increase – the chance of both units being offline at the same time is rising (unless regulatory deadlines are relaxed). We track Eskom’s performance and forecast 18 months of loadshedding (based on the most current information – a...
Cement Import Monitor – May 23
Key message: Imports seem to be stabilizing after falling 31% in CY22. The weak ZAR does not seem to be having an impact. January to May 2023 saw imports of 323kt, down 1% from the same period in 2022. Cement imports fell 31% to 730kt for CY22. Cement imports to May...
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Key message: High demand is causing loadshedding now, as opposed to a high level of outages. We track Eskom’s performance and forecast 18 months of loadshedding (based on the most current information – a large caveat when it comes to Eskom performance). We use the...
PPC – FY23 Results
Key message: Price increases look to catch up to cost inflation in FY24, with steady dividends expected from Zimbabwe and Rwanda. PPC released FY23 results, with revenue up by 0.2% but the EBITDA margin fell to 13.7% (from 15.1%). A R200m distribution (share buyback)...
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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 hosted an Investor Day. We update our forecasts post this event and the recent 1H FY23 results. Revenue and...
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Key message: Results continue to run well ahead of last year, but growth rates are now normalising. Food inflation remains high, but operating margins are increasing. We update our numbers after Bidcorp released a Trading Update for the 10 months to April 2023....
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Key message: Continuing to find growth in a tough market – with capital allocation focused on growth sectors and share buybacks. Hudaco reported 1H FY23 results. Revenue and operating profit increased 12% and 3% respectively. HEPS increased 8.1% and an interim...
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Key message: Resilient demand from key sectors should allow earnings stability at least, with continued strong cash generation. Invicta released FY23 results, with sustainable HEPS up 33% on an 8% revenue increase. Sustainable operating profit increased by 7% with the...
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Key message: Strong month for light commercial sales, but passenger sales feeling the pinch of higher interest rates. NAAMSA released June 2023 new vehicle sales. Passenger and LCV sales increased 13.8% YoY with passenger sales up 0.8% YoY. Sales of vehicles through...