Chronux Research

The leading independent research firm in South Africa

Chronux 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 Possible

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Key message: Bidvest continues to see market share gains and the availability of inventory was a competitive advantage. Bidvest released 1H FY22 results. HEPS increased by 37% on a 13% and 25% increase in revenue and trading profit (approx. 20% offshore) respectively....

Forestry & Paper: Industry Insights

February 2022 average price changes (Europe unless otherwise stated): NBSK pulp +2% m/m; +35% y/y; +6% vs. 2021 average. BHKP pulp +0% m/m; +50% y/y; +13% vs. 2021 average. China BHKP net pulp +8% m/m; +7% y/y; -5% vs. 2021 average. China NBSK net pulp +6% m/m; +3%...

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Key message: Covid delays on projects will impact FY22 results, but Murray & Roberts has good contractual cover. FY23 earnings are forecast to grow substantially. Murray & Roberts released 1H FY22 results. Continuing HEPS recovered to 29c as revenue and EBIT...

WBHO – 1H FY22 Results

Key message: The cost of exiting Australia is high, but the balance sheet is still strong enough to support the remaining businesses.   WBHO released 1H FY22 results. The results were overshadowed by the exit from the Australian operations as cash requirements...

Forestry & Paper: Mondi Russian Insights

Sylvamo (spun out of IP) may curtail or temporarily shut down production at its Svetogorsk mill in Russia (at the border with Finland) due to inadequate supplies of critical raw materials from Europe: Currently, they are operating in Russia; however, are trying to...

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Key message: Super Group has emerged well out of the Covid era, and is well positioned to benefit from growth in some sectors and a recovery in others off a low base. Super Group released 1H FY22 results. HEPS increased by 20% to 190.9c on an 8.4% and 29.7% increase...

Forestry & Paper: Mondi FY 21E Insights

Mondi to report FY 21E results this Thursday: We expect underlying EBITDA to increase by 7% y/y to EUR 1,444mn. This drives underlying EPS growth of 12% y/y to EUR 1.45/share and we expect a final DPS of EUR 0.46/share (FY DPS: EUR 0.66/share). Net debt/EBITDA likely...

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New Vehicle Sales – February 2022 Key message: February 2022 passenger car sales grew by 22.4% YoY (-0.3% on February 2020). Some recovery in Locally Produced OEM cars sales is starting to become evident. NAAMSA released February 2022 new vehicle sales.Car sales have...

Forestry & Paper: Textile Fibres Insights

Key w/w moves: Cotton -2%; Polyester +3%; HW DWP +1%, China-origin DWP flat%, high-end VSF +1% and Lyocell flat w/w. Cotton’s premium to VSF has narrowed further to 61% (2021 average: 30%) and a 170% premium to polyester (2021 average: 150%). The VSF premium to...

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Key message: Another strong result, although market conditions remain unusual and cost pressures are likely to grow into 2H. FY23 should be a relatively normal year as supply pressures ease. Motus released 1H FY22 results, with revenue and operating profit increasing...