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.

Our Corporate Sponsored Coverage

Making It Possible

F&P: Navigator Q4 20A UWF Insights

Conference call on Thursday: Ahead of the FY 20A conference call on 28 January at 7pm, we note key uncoated woodfree (UWF) insights relevant for Mondi’s paper business.Navigator operated at full capacity from July onwards:  This compares to its competitors, which were...

Cashbuild

2Q Operational Update and Trading Statement Key message: DIY products have experienced a remarkable uplift over the last six months, with activity levels holding up strongly over December. Cashbuild released a 2Q Operational Update and Trading Statement.Revenue for 2Q...

Forestry & Paper Textiles Fibre Weekly Update

Logistics still being impacted: Second wave of COVID-19 and the approach of the Chinese Lunar New Year impacting logistics, coupled with fewer vehicles available in Zinjiang. VSF operating rate improves slightly to 83%: Plants that cut run rates generally resumed...

Restricted content

Chart Book and Outlook Key message: Strong outperformance over the last six months, but in general still down from a year ago. The big movers were where balance sheet concerns drove down valuations – but we would be switching to the less-speculative better managed...

Restricted content

Earnings Update Key message: Covenant relaxation and cost cutting are balanced by weaker volumes and margin erosion due to new competition in the key SA bevcan market. Lender milestones need to be adhered to avoid a rights offer – there is little room for error. A...

Restricted content

Earnings Update Key message: We update our earnings as market disruption from rental de-fleeting appears to be minimal. We update our earnings and Target Price as the risk of rental de-fleeting caused by the Covid-19 travel disruptions appears to be minimal.Motus (and...

Forestry and Paper Weekly Industry Insights

Pulp prices to benefit from maintenance downtime in Q1: At least 10 Latin America pulp mills are scheduled for downtime in Q1. In Brazil, this will impact four mills with a total capacity of 1.8mt (BEK) and in Chile this will impact four mills with a total capacity of...

Restricted content

Sale of Motor Retail Division Key message: The price appears low, although Barloworld retains a 50% stake in the business. Barloworld announced the sale of the Motor Retail Division (after releasing a cautionary in December 2020) to NMI-DSM.NMI-DSM is a 50:50 JV...

Sasol: Spotlight on earnings – latest profit drivers

Spot earnings for FY21 at R18.32/share were slightly lower due mainly to a stronger rand as well as a slightly lower oil price.  Refining margins were higher and breached $5/bbl.  Both petrol and diesel cracks are trading around $5/bbl.Asian chemical prices...

F&P Weekly Price Update

Pulp in the green across the board, with China SW benefiting most: China SW/HW spread is comfortably over USD 200/t. This is on the back of SW producers having increased prices from USD 100-120/t, following the run-on futures (March SW pulp contract settled at USD...