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: Spotlight on earnings – latest profit drivers
FY21E Spot earnings increased by 15% to R20.00/share as oil prices and refining margins increased significantly (We exclude reversal of currency translations and hedge gains from spot earnings). Spot earnings for FY22 are at R31.30/share/Asian monomer prices...
Sasol: Earnings measures have lost utility
Earnings conundrum: Sasol reported that it expects 1HFY21 basic earnings and headline earnings will increase by more than 100% while core HEPS will decline by 5% to 25%. These distortions in earnings are problematic for valuation purposes, setting a...
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Key message: Strong performance indicating margins normalising faster than our expectations. Super Group released a Trading Statement for the six months to December 2020.Revenue increased by 5.8% with a strong performance from Supply Chain Europe and Dealerships UK...
Sappi Ltd: Upgrade to Overweight
Sappi share price outperformance driven by a recovery in the global textile fibre supply chain: YTD, Sappi (+29%) has outperformed key graphic paper peers (Stora Enso: -3%; UPM: -2% and Verso: -2%). Further re-rating under way: We have maintained that in order for a...
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New Vehicle Sales – January 2021 Key message: We add dealer and rental sales numbers to our report. While dealer sales are down 14.7% YoY, rental sales are down 34.7%. NAAMSA has changed the way they report new vehicle sales by brand. Passenger and Light Commercial...
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Key message: A growing order book reflects the fruits of a switch to focus on resources and large infrastructure projects. This has resulted in some welcome diversity. Risk management is strong and will be a key factor for success. Murray & Roberts is finalising a...
Sasol: Trading statement – Positive surprise – but not as clear cut
Sasol released a trading statement for 1HFY21 earlier this morning. Production numbers for 1HFY21 were also released.We attach a spreadsheet that show half year as well as quarterly production estimates and percentage changes.Sasol guides that: Basic earnings...
Sasol: Spotlight on earnings – latest profit drivers
FY21E Spot earnings declined to R17.40/share this week as oil and chemical prices showed modest declines. Spot earnings for FY22 are now at R26.93/share (ex. the impact of higher PKO prices).Asian chemical prices were slightly lower, but PVC prices remain at...
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1Q FY21 Trading Update Key message: No negative surprises, and cash management appears to be improving. Maiden contribution from Ingrain is positive. Barloworld released a Trading update for 1Q FY21 (three months to 31 December 2020).Equipment Southern Africa: revenue...
Forestry & Paper Weekly Price Update
February likely to see price increases across key HW and SW grades on the back of tightening global supply/demand dynamics: Pulp in China gets a further boost from pulp futures frenzy. The rise in pulp futures has seen higher levels for pulp imports and physical...