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 PossibleCashbuild – 1H FY22 Results
Key message: The impacts of looting and a high base (post Covid lockdown DIY boom) impacted earnings. Operating margins remain at elevated levels and should decline over the next 2-3 years, despite forecast revenue growth. Cashbuild released 1H FY22 results. Diluted...
SA Banks
BA900 – Jan 21. FirstRand maintains positive momentum. Deposit growth slips. On our methodology, industry advances growth is 4.3% YoY, with 0.3% MoM. All categories had positive MoM growth apart from commercial mortgages (-0.7%) and foreign currency loans (-4.1%)....
Forestry & Paper: Textile Fibre Insights
Key w/w moves: Cotton +2%; Polyester -1%; HW DWP +3%, China-origin DWP +2%, medium and high-end VSF stable and Lyocell +1 w/w. Cotton’s premium to VSF is 64% (2021 average: 30%) and a 169% premium to polyester (2021 average: 150%). The VSF premium to polyester is...
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Key message: Strong performance from the industrial and chemical manufacturing divisions, reflecting strong local demand and the benefit of competitive local capacity. Chemical margins are at the higher end of the cyclical range (after a number of years at cyclical...
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Key message: Covid issues are fading fast, but cost pressures are rising. Margin pressure may be felt in the short-term. Bidcorp released 1H FY22 results. Revenue increased by 18.1% (26.1% in constant currency) but strong cost controls resulted in trading profit...
Forestry & Paper: Industry Insights
Pulp prices firmly in the green again this week: The worlds’ largest BCMT pulp producer, West Fraser has increased the BCTMP price to USD 650/t in China with immediate effect. The NOREXECO pulp futures for 23E imply an 9-14% decline in Europe, while prices in China...
Forestry & Paper: DS Smith Packaging Insights
DS Smith released a positive Q3 22E trading update this morning (from 1 November 2021 to 31 January 2022): They have seen continued momentum during H2 with good progress in profitability and cash generation. Encouragingly, volume growth and continuing packaging price...
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Key message: Strong local demand drives growth, with margins likely to grow into FY22 due to price increases implemented. Some cost inflation (energy) may impact in the short-term. Mpact released FY21 results. Revenue increased 12.6% on an 8.8% increase in sales...
Forestry & Paper: Russian Insights
Ahlstrom-Munksj publishes statement on business related to Russia (2 March): Ahlstrom-Munksj’s direct exposure to Russia and Ukraine is limited, while there is great uncertainty about the global repercussions, which in turn can be significant. Of Ahlstrom-Munksj’s 45...
Forestry & Paper: Textiles Fibre Insights
Lenzing successfully opens world’s largest lyocell plant in Thailand Key w/w moves: Cotton -2%; Polyester +4%; HW DWP +3%, China-origin DWP +7%, medium and high-end VSF +1% and Lyocell +1 w/w. Cotton’s premium to VSF is still 61% (2021 average: 30%) and a 162% premium...