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: Monthly Industry Insights
November average price changes: NBSK pulp -2% m/m; +12% y/y; BHKP pulp 0% m/m; +21% y/y; China BHKP net pulp 0% m/m; +57% y/y; China NBSK net pulp -2% m/m; +30% y/y; BCTMP -1% m/m; +33% y/y; US CFS +0% m/m; +20% y/y; LWC +3% m/m; +70% y/y; CWF +4% m/m; +69% y/y; UWF...
Forestry & Paper: DS Smith European Packaging Insights
DS Smith H1 23A results saw a continued increase in profitability and outlook upgraded: Revenue growth of +28% y/y (+11% h/h) was driven by improved pricing (GBP 950mn: 69% from higher packaging prices and 31% from an increase in external paper sales, recycling...
Murray & Roberts – Sale of Clough
Key message: Clough and MRPL (M&R holding company Australia) have been put into voluntary administration. This pulls RUC into the administration process. Australia remains ringfenced from the Group. Murray & Roberts announced the proposed sale of Clough to...
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Key message: The rights issue is now required as potential asset sales are now unlikely and WC absorbs further cash. Nampak recently released FY22 results, with HEPS down 42% to 35.9c on a 21% and 13% increase in revenue and trading profit respectively. Operating...
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Key message: The Zeda unbundling does not create value, in our opinion, with multiples applied to both businesses relatively similar. Barloworld released FY22 results, with diluted HEPS increasing 48% to 1753c (HEPS from continuing operations up 16% to 1086c). A...
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Key message: Zeda will be unbundled from Barloworld on 13 December 2022. Our valuation for Zeda is R16.50 (fwd. PE 7.4 times). Zeda released its maiden results as a standalone company, with the unbundling from Barloworld planned on 13 December 2022. Zeda operates a...
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Key message: The Motus Import market share fell again to15.1% but is now settled in its normal range. Used car prices were up 9% in 3Q but expect a large fall in 4Q. NAAMSA released November 2022 new vehicle sales. Passenger and LCV sales increased 18.8% YoY with...
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Key message: Growth in FY23 will be led by an export recovery and growth in the energy market. Reunert is well positioned for growth well in excess of general economic activity in South Africa. Reunert released FY22 results. HEPS increased 9% to 519c on a 16% increase...
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Key message: Demand growth in key sectors continues, with a strong contribution from Kian Ann. Invicta released 1H FY23 results, with HEPS up 43% on a 7% revenue increase. Operating profit declined by 10% but the contribution from Kian Ann (now equity accounted)...
Sirius Real Estate: 1H FY23 results and valuation update
Key message: Sirius is in significantly better operational and financial shape than its share price performance over 2022 suggests, in our view, despite a highly uncertain macro backdrop in its core operating markets. With conservative upgrades to our earnings...