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 PossibleForestry & Paper: Industry Insights
Pulp prices mostly stable, except for further softness in Europe: NOREXECO pulp futures for CY 23E imply a further 4-10% decline in Europe. Meanwhile, prices in China are expected to improve by 1-4%. According to UTIPULP statistics, European consumer pulp inventories...
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Key message: Better able to negotiate volatile commodity prices, we forecast growth into FY24 boosted by operational efficiencies. Omnia released FY23 results. Adjusted HEPS (excl. Zimbabwe) increased 1% on a 25% and 15% increase in revenue and operating profit...
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Key message: Another cheap acquisition, another 2-3 year payback on investment. Afrimat announce the acquisition of Lafarge South Africa (comprising of aggregates, ash, cement and readymix businesses). The acquisition price will be US$6m for the equity with R900m in...
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Key message: We release our initial Loadshedding Forecast. The UCLF has improved over recent weeks – but remains volatile. We release our initial Eskom Loadshedding Monitor – a weekly publication tracking Eskom’s performance and forecasting 18 months of loadshedding...
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Key message: Diversification will help through weakening markets, with MPD looking to contribute substantially. Motus hosted an Analyst Day. No financial updates or forecasts were made, except to reiterate guidance of flat earnings (HEPS) in FY23. Further detail was...
Raubex – FY23 Results
Key message: The Beit Bridge project completion leaves a large hole in profits – significant revenue growth is required to replace this. Raubex recently reported FY23 results. HEPS increased 32% on a 32% and 35% increase in revenue and operating profit. A final...
Sirius Real Estate: FY23 results and valuation update
Key message: Sirius delivered a credibly strong set of results for FY23 and continues to capture superior income growth in its core operating markets through its capex initiatives and pricing-led strategies. Defensive amidst uncertainty: while FY23 FFO growth...
Forestry & Paper: Monthly Industry Insights
May highlights for pulp, graphic paper and packaging: Paper pulp prices were firmly in the red across all regions, with hardwood hit the hardest in China (-23%), followed by Europe (-11%). Graphic paper prices in Europe edged down further (-1% to -3%), however remain...
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Key message: Light commercial sales continue to be strong, but passenger sales are impacted by multiple headwinds. NAAMSA released May 2023 new vehicle sales. Passenger and LCV sales increased 9.7% YoY with passenger sales up 0.1% YoY. Sales of vehicles through...
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Key message: Strong result but margin pressure and increased finance costs could be a burden on earnings going forward. Zeda released 1H FY23 results. HEPS increased 4% on a 20% and 25% increase in revenue and operating profit respectively. Net interest costs...