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.
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Key message: High non-operating costs impact the result, with evidence of margin pressure expected. Imperial released a Trading Update for 1H FY21.EPS and HEPS for continuing operations are expected to be down approx. 60% and 43% respectively.The EPS and HEPS guided...
WBHO – 1H FY21 Trading Update
Groundhog Day Key message: Large loss-making projects have a habit of lingering. Another A$28m provision for WRU in Australia clouds a decent performance in the rest of the business. WBHO released a Trading Update for 1H FY21. Disappointingly a further A$28m provision...
Sasol: 1HFY21 preview – a messy result expected
Earnings higher…: Sasol will report results for 1HFY21 on the 22nd of February. The company guides that headline EPS will be in a range of R18.59-R19.78 (+>100%, YoY). Large reversals of non-cash period end losses in FY20 will impact earnings...
Sasol: The flight of US polyethylene prices in pictures
Product prices flying: Polymer prices have increased significantly in recent weeks and US spot prices for polyethylene are more than 80% higher than average prices achieved in Sasol’s previous financial year. Prices are supported by higher oil prices,...
F&P: Suzano Q4 20A Pulp Insights
Suzano delivered a robust performance: Suzano delivered ahead of promised synergies from the Fibria merger. This coupled with pulp volumes sold up 15% y/y to 10.8mt, helped Suzano print a 50% EBITDA margin.FY 20A cash costs drop 9% y/y, with an outlook for stable cash...
Sasol: US polyethylene prices at even higher levels for longer
IHS has published an article on US polymer markets with a specific focus on polyethylene. US domestic polyethylene prices have increased by more than $500/t over the last seven months and producers are seeking additional increases of around $250/t in January and...
Sasol: Spotlight on earnings – latest profit drivers
Spot earnings were slightly higher this week as higher oil prices were offset by a stronger rand and a significant decline in refining margins. Petrol and diesel crack spreads dropped below $5/bbl. FY21 spot earnings, ex currency loss reversals are at...
F&P: Smurfit Kappa FY 20A Packaging Insights
Strong performance in a tough year, with FY 20A EBITDA beating guidance: EBITDA margin down 54% y/y to 17.7% (2nd highest in the history of the group), mainly due to weaker paper and box pricing. FY DPS was increased by 8% y/y. FCF up 23% y/y to EUR 547mn and net...
F&P Weekly Price Update
Pulp prices in China continue to benefit from the futures market: January tonnage was c.126mt (c.2x the highest monthly volume recorded previously). Fundamentally, demand has been strong in China on the back of robust tissue and ivory board consumption. Additionally,...
F&P: Textiles Fibre Weekly Update
Key w/w moves: VSF +2%; polyester +4%; and high-quality cotton liner +5%. VSF prints further gains, despite the onset of the CNY: Despite increases going ahead, most spinners have built up sufficient inventory for now and post the holidays. VSF operating rate drops to...