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 PossibleSasol: Emission solutions – real or science fiction?
Emission threat: Sasol’s licence to operate its synthetic fuels operation in South Africa is under threat due to its extremely low energy efficiency and high emissions of carbon dioxide at its Synfuels facility.Mitigating options: Sasol is looking to...
Forestry & Paper Insights
Is VSF next? To date, global textile companies have been scrambling to cut Xinjian cotton from their supply chains. As with cotton, the opacity of the Xinjiang supply chain makes it impossible to prove whether viscose produced there is ethically made.VSF from Xinjian...
Forestry & Paper Textiles fibre Weekly Update
US/China relations and the Xinjiang cotton sanction continue to weigh down on cotton prices: The ZCE cotton contract was down 4%, while cotton linter declined 6% w/w.Low trading volumes saw medium-grade VSF prices drop 4%: This is roughly in line with polyester (-5%)...
Forestry & Paper Weekly Price Update
Further pulp price increases on the cards for April: Suzano has announced an 8% (USD 60/t) BEK price increase to China, 9% in the US and 10% in Europe, all effective 1 April. Russia’s largest pulp producer (1.8mtpa of market pulp capacity), the Ilim Group has...
Sasol: Spotlight on earnings – latest profit drivers
Sasol’s spot earnings were only slightly higher this week as lower oil prices and refining margins were offset by a weaker rand. Spot earnings for FY21 and FY22 are at R27.05 and R43.66/share. Refining margins remain weak and diesel cracks are close to...
Forestry & Paper Weekly Textiles Fibre Update
Key YTD moves: Polyester +21%; HW DWP +44%; China-origin DWP +43%; medium-grade VSF +36% and high-end VSF +39%.Cotton market weakened w/w: Cotton linter declined 3% w/w, while refined cotton was broadly stable but under some pressure.VSF market...
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Another go at LeasePlan Australia? Key message: SG Fleet has requested a suspension of trading on the ASX pending an announcement on Friday 26 March. It appears than SG Fleet is having another look at LeasePlan’s Australian business. SG Fleet is reported to be looking...
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Feedback from Management Meeting Key message: Linebooker is a freight and service platform for the logistics sector in South Africa. Funded by ARC and started in 2017, Linebooker is the only online platform of its kind in South Africa and has grown to be the largest...
Sasol – Spotlight on earnings – latest profit drivers
Sasol’s spot earnings retreated this week as oil prices pulled back sharply. Refining margins remained weak and diesel cracks dropped around $1/bbl. Spot earnings for FY21 is at 26.78/share and spot earnings for FY22 declined by 23% to...
Forestry & Paper Weekly Price Update
Chinese BSK futures pumps the brakes this week: The May softwood contract on the Shanghai Futures Exchange settled at RMB 7,218/t last week Thursday, a drop of RMB 152/t from two weeks ago. We note that LatAM pulp producers are now raising concern over break bulk...