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.

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Making It Possible

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Key message: Strong Covid-induced DIY demand has boosted volumes and margins – this will moderate into FY22. We do anticipate a sustained growth in demand for construction materials. Cashbuild released FY21 results. Diluted HEPS increased 152% to 2870c on a 25% and...

WBHO – FY21 Results

Key message: Actively managing down the order book should improve the quality of earnings. Signs of a recovery in the mining sector is a positive for WBO. WBHO released FY21 results. HEPS swung back to profitability with reduced loses in Australia off an 11% decline...

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Key message: FY22 and FY23 should see strong revenue and profitability growth with execution of the current high order book. Murray & Roberts released FY21 results. Continuing HEPS recovered from a loss to 16c as revenue increased by 5% and EBIT recovered from a...

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Key message: The resumption of dividends was the key feature of the result, indicating the end of a long recovery process and a relatively quick normalisation post-Covid. Super Group released FY21 results. HEPS increased by 89% to 285.4c on a 14% and 44% increase in...

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New Vehicle Sales – August 2021 Key message: On 1 July 2021, the Competition Commission’s Guidelines for Competition in the South African Automotive Aftermarket become effective. The final guidelines were issued on 29 January 2021 and are available on the Commission’s...

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FY21 Results Key message: Integrated model helps grow market share as global supply chains disrupted. Price and capacity increases should drive growth into FY22. Italtile released FY21 results. Diluted HEPS increased 77% to 140.1c off an 25% increase in system-wide...

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FY21 Results Key message: Chemical margins improve helped by new raw material pricing mechanisms with Sasol. Strong demand in Diversified Industrials. KAP released FY21 results. Diluted HEPS increased 79% to 37.4c off an 11% increase in revenue and 48% increase in...

Forestry & Paper Industry Price Update

Softwood producers keep September prices in China flat, while hardwood sees further cuts (USD 15/t): Arauco, Illim Group and Metsä Fibre announced flat prices into China for September orders. The Softwood Shanghai futures price for September has settled at USD...

Cement Import Monitor

June 2021 Key message: June imports fell and the July/August levels are likely to fall substantially due to the looting and disruptions around the port of Durban. June 2021 saw imports of 57 958 tons.The 12-month rolling annual import level is 1.255m tons, up 43% on...

Forestry & Paper: Textiles Fibre Update

Key YTD moves: Cotton +16%; Polyester +18%; HW DWP +38%; China-origin DWP +27%; medium-grade VSF +14% and high-end VSF +16%. In contrast, Lyocell is down 6%. VSF price slightly lower this week: The VSF operating rate declined to 78% as a unit in East China reduced...