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: Textile Fibre Insights
Key w/w moves: Cotton +2%; Polyester +4%; HW DWP 0%; China-origin DWP -2%, medium-grade VSF -3%; and high-end VSF -4% and Lyocell 0%. Cotton is now trading at a 4% premium to VSF (2021 average premium: 30%) and an 87% premium to polyester (2021 average: 150%). The VSF...
WBHO – FY22 Results
Key message: The cost to exit Australia seems certain now – the A$135m guided in June 2022 still applies. A strongly growing order book in continuing operations points to a positive outlook. WBHO released FY22 results. Overall revenue and operating profit from...
Spear REIT: 1H FY23 pre-close and earnings update
Key message: Spear’s Western Cape focus presents a positive picture all around as the portfolio continues to deliver relatively stable and defensive performance. FY23 performance in line with guidance so far: overall reversions have averaged -3.5% for the period...
Forestry & Paper: Industry Insights
Europe August average price changes: NBSK pulp +2% m/m; +11% y/y; BHKP pulp +2% m/m; +21% y/y; China BHKP net pulp +1% m/m; +35% y/y; China NBSK net pulp +0% m/m; +16% y/y; LWC +1% m/m; +74% y/y; CWF +2% m/m; +73% y/y; UWF +2% m/m; +51% y/y; Newsprint +1% m/m; +78%...
NEPI Rockcastle: 1H FY22 results and valuation update
Key message: NEPI Rockcastle displayed a sharp recovery in 1H FY22 and the upward revision to earnings guidance is encouraging. Weakened by a challenging macro picture, we think the current share price materially undervalues the portfolio and its prospects on a...
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Key message: Solid result as diversified nature pays dividends. Organic growth outlook strong, particularly in Freight division. Bidvest released FY22 results. Diluted HEPS increased by 22% to 1440c off a 13.2% and 23.3% increase in revenue and trading profit...
Forestry & Paper: Textile Fibre Insights
August 2022 key prices changes: The imported hardwood DP price averaged USD 1,197/t in August (USD: -1% m/m & +19% y/y; ZAR: -2% m/m & +34% y/y). The average for July-August 2022 is USD 1,204/t (USD: +19% y/y & +8% q/q; ZAR: +36% y/y & +16% q/q) vs....
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Key message: Strong result but difficult to reconcile current high margins to normal times – margins may be overstated by up to 20%. Expected car volume growth may not compensate for margins falling. Motus released FY22 results, with revenue and operating profit...
Emira Property Fund: FY22 results and valuation update
Key message: although FY22 results were stronger than we had expected, we think that Emira generally faces constrained growth conditions, particularly in its office portfolio. Current valuation is undemanding, but there are better prospects for re-rating amongst...
Resilient REIT – 1H FY22 results and valuation update
Key message: strong core performance from Resilient’s SA retail portfolio underpins its investment case and appealing earnings growth outlook, but this is fully reflected in the share price and its premium valuation relative to peers. 1H FY22 results were ahead of...