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 stable to slightly down: Hardwood DP was stable this week, while softwood DP decreased by 1% w/w. US spot pulp prices drop $20-50/t with demand softening as paper mills increase downtime. NOREXECO pulp futures for CY 23E imply an 5-9% decline in Europe,...
Cement Import Monitor
Key message: Cement imports were down 31% in CY22, although port disruptions and a weak currency likely are having an impact. Import protection from government now appears unlikely. July to December 2022 saw imports of 348kt, down 25% from the same period in 2021....
Forestry & Paper: Industry Insights
Paper pulp prices under pressure in all regions, while DP continues to gain ground: Hardwood DP increased by 1% w/w, while most paper pulp grades were down 1%. Pulp purchases in China have paused ahead of the upcoming Shanghai Pulp Week. NOREXECO pulp futures for CY...
PPC – Capital Markets Day
Key message: Despite a weak SA cement market, dividends from Zimbabwe and Rwanda allow PPC to look at resuming distributions to shareholders. PPC hosted a Capital Markets Day and provided an operational update for the 12 months to March 2023. Cement South Africa and...
AfroCentric Investment Corporation: H1 23A Insights
H1 23A results snapshot: Revenue growth was subdued, up 1% y/y (+1% h/h), driven by the Group Admin business (+2% y/y), while Healthcare Retail revenue was broadly flat. EBITDA was down 9% y/y (-18% h/h), with profitability in Healthcare Retail under the most...
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Key message: Pricing momentum flows into FY23, and the capex program caters for growing demand in the agricultural sector. Mpact released FY22 results. Revenue increased 7.1% due mainly to price increases (revenue and volumes up 15.2% and 6.3% excluding the...
Forestry & Paper: Industry Insights
Mixed moves for pulp: Softwood pulp prices are holding ground, while hardwood is coming under further pressure. Hardwood DP is bucking the trend, however. NOREXECO pulp futures for CY 23E imply an 8-11% decline in Europe, and a decline of 6-11% in China, with more...
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Key message: The debt repayment schedule requires more than just operating cash flows and dividends. Murray & Roberts released 1H FY23 results. Continuing HEPS fell to a loss of 30c as revenue and EBIT increased by 41% and 248% respectively off a restated base....
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Key message: We introduce a “Privatisation Dividend” into our forecast as Bidvest capitalises from ongoing state failure. Bidvest released 1H FY23 results. Diluted HEPS increased by 15% to 939c off a 14% and 14.5% increase in revenue and trading profit respectively....
Spear REIT: FY23 pre-close update
Key message: 2H FY23 performance is set to meet expectations and guidance. Overall, organic performance appears intact and the portfolio continues to reposition through investment and disposal activity. Trading in line with expectations: management has maintained...