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
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Key message: Good margin recovery as local markets recover and restructuring benefits become evident. Mpact is well positioned competitively in recycled paper. Mpact released FY20 results. HEPS increased 5.5% to 196.1c on flat revenue and an operating profit decline...
Forestry & Paper: Textiles Fibre Weekly Update
Key YTD moves: Polyester +28%; HW DWP +44%; China-origin DWP +42%; medium-grade VSF +36% and high-end VSF +39%. VSF prices see moderate gains: Sateri started to sign LT contracts in March. Spinners have shown less enthusiasm to chase up VSF supply on the back of lower...
WBHO – 1H FY21 Results
Key message: WBHO was able to absorb the WRU losses with minimal balance sheet stress. There are some encouraging order book signs in the local/rest of Africa and UK businesses. WBHO released 1H FY21 results. HEPS declined 80% to 81c as the WRU project incurred a...
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Earnings Update post Results Key message: Strong demand across the Integrated Timber, Integrated Bedding and Polymer divisions drives margin growth. KAP released 1H FY21 results. HEPS increased 2% to 23c off a 1% decline in revenue and 6% increase in operating profit....
Sasol: Spotlight on earnings – latest profit drivers
Spot earnings for Sasol continue to rise and core HEPS at spot for FY21 are currently at R26.32/share. Spot HEPS for FY22 are at R47.51/share. While oil prices were slightly lower, refining margins rebounded by14% as refineries in the US shut due to cold...
Forestry & Paper Weekly Price Update
Pulp in the green across all regions: Klabin sets new prices in Europe (USD 910/t) and North America (USD 1,140/t) for BEK pulp and to follow suit in Asia. US prices set for further gains as softwood supply shock in the South from the Arctic Blast that saw three...
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Key message: The non-trading losses should now be significantly smaller with Mumbai Airport and Ontime being sold. The underlying operational performance was very good given the circumstances. Bidvest released 1H FY21 results. HEPS increased by 6.4% on a 3.4% and 3.5%...
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Key message: Margins recover well mainly due to pre-Covid cost cutting. SG Fleet has weathered Covid-19 well but remains undervalued in the Super Group share price. Super Group released 1H FY21 results. HEPS increased by 4.7% to 159.6c on a 5.8% and 0.5% increase in...
Forestry & Paper Textiles Fibre Weekly Update
Key YTD moves: Polyester +37%; HW DWP +44%; China-origin HW DWP +42%; medium-grade VSF +36% and high-end VSF +38%. VSF prices see moderate gains: Sateri resumed VSF sales this past week, fulfilling February contracts. VSF operating rate increases to 83%: Operating...
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New Vehicle Sales – February 2021 Key message: We add dealer and rental sales numbers to our report. While dealer sales are down 12.6% YoY, rental sales are down 31.5%. NAAMSA has changed the way they report new vehicle sales by brand. Passenger and Light Commercial...