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 PossibleRestricted content
Key message: Cash generation continues to exceed expectations through strong balance sheet management. The boost from optimising working capital appears to be at an end, but operational performance should continue to improve earnings and returns. A long-awaited...
FORESTRY & PAPER: Textiles Fibre Update
Key YTD moves: Cotton +43%; Polyester +19%; HW DWP +27%; China-origin DWP +15%; medium-grade VSF +23%; high-end VSF +26% and Lyocell -7%. Cotton is currently trading at a 54% premium to VSF (YTD average: 25%) and at a 210% premium to polyester (YTD average: 142%). VSF...
FORESTRY & PAPER: Industry Update
Fastmarkets RISI Global Paper Packaging Outlook Softwood pulp prices under pressure in both Europe and China: In China, P&B demand remains poor due to electricity shortages, thus reducing pulp demand. US spot pulp prices continue to decline as the usual seasonal...
Cement Import Monitor
September 2021 Key message: September imports were high at over 150kt – supply chain issues do not seem to be impacting cement shipments. September 2021 saw imports of 151 521 tons, a significant increase from July and August levels. The 12-month rolling annual import...
Sirius Real Estate – 1H FY22 results update and BizSpace acquisition
1H FY22 results update and BizSpace acquisition Key message: Sirius’ strong core performance and vigorous inorganic growth pipeline, well-supported by capital markets, combine for highly compelling growth potential. However, this is fully reflected in the share price...
FORESTRY & PAPER: Textiles Fibre Update
Key YTD moves: Cotton +41%; Polyester +22%; HW DWP +28%; China-origin DWP +16%; medium-grade VSF +24%; high-end VSF +27% and Lyocell -8%. Cotton is currently trading at a 49% premium to VSF (YTD average: 25%) and at a 197% premium to polyester (YTD average: 141%). VSF...
SA Banks
BA900 – Sep 21. Standard Bank maintaining its growth momentum Annual growth rates in the SARB’s gross loans and advances category accelerated from 1.9% in August to 3.7% in September. Retail annual loan growth of 5.9% has remained in line with August with corporate...
FORESTRY & PAPER: Sappi Q4 21A Insights
Q4 21A snapshot: EBITDA +116% y/y & +22% q/q to USD 177m (CRe: USD 189mn vs. consensus: USD 209mn). EPS in the green at USD 0.11/share (CRe: USD 0.11/share vs. consensus: USD 0.13/share). Net debt decreased by 5% q/q to USD 1,946mn (CRe: 2,088mn) & net...
FORESTRY & PAPER: Industry Update
Pulp prices under pressure in all key regions this week: The Pulp and Paper Products Council (PPPC) reported World-20 market pulp stats for September last week. China demand remains weak, while Europe continues to surprise to the upside. Global pulp producer stocks...
Raubex- 1H FY22 Results
Key message: With the roads order book relatively full, renewable energy offers Raubex further growth opportunities. The announcement of external funding for Eskom from COP26 should unlock public and private renewable energy spend. This is significant for Raubex as...